Bathroom products maker Jaquar & Co Pvt. Ltd has acquired a sanitaryware factory from Euro Ceramics Ltd for Rs 100 crore ($15.5 million).
The plant, located at the Bhachau area of Kutch district in Gujarat, is spread over 17 acres. Jaquar operates five factories in India and one in South Korea, it said in a statement.
“The takeover of Euro Ceramics’ manufacturing plant will help us achieve a turnover of Rs 3,500 crore in the financial year 2017-18,” said Rajesh Mehra, director at Jaquar Group.
Mehra said Jaquar Group will additionally invest over Rs 75-80 crore into the plant, within a year.
“A planned upgrade will take the plant’s production capacity from 1.2 million sanitaryware pieces to 1.8 million pieces in 2017-18,” he said.
The plant, which has a workforce of over 400 people, will make a new range of designer sanitaryware products in partnership with design firms such as London-based DanelonMeroni and Bangalore-based Foley Design.
Launched in 1960, the Gurgaon-based Jaquar Group claims to have a presence in over 30 countries across Europe, the Middle East, Asia-Pacific, Africa and South Asia.
The company sells bathroom fixtures, faucets and other accessories under Artize, Jaquar and Essco brands. It posted net sales of Rs 2,753 crore in financial year 2016-17.
The bathroom solutions segment has not been vibrant in terms of deals. Yet, in 2014, Asian Paints Ltd acquired the front-end sales business of Punjab-based bathroom fittings and accessories manufacturer Ess Ess Bathroom Products Pvt. Ltd.
In the same year, bathroom fittings firm Roca India acquired Espiem Plastics, making it a wholly-owned subsidiary of the Roca Group.