Ashish Dhawan-backed Kajaria Ceramics Ltd has acquired 51 per cent stake in Gujarat-based Jaxx Vitrified Pvt Ltd for Rs 6.26 crore, the company has disclosed in a statement to the Bombay Stock Exchange.
Jaxx has an annual capacity to produce 3.10 million sq. mt. of polished vitrified tiles per annum, the addition of which would take the total annual capacity of Kajaria Ceramics to 33.70 million sq. mt., the statement added.
Shares of Kajaria Ceramics closed at Rs 111.70 a unit on the BSE, down 1.33 per cent from the previous close in a weak Mumbai market on Monday.
ChrysCapital’s founder & chief Ashish Dhawan owns 2.45 per cent stake in Kajaria Ceramics (as on December 31, 2011) in his personal capacity.
“Jaxx has a brand new plant which would start commercial production in February 2012. This will help Kajaria reduce import dependence and take logistic advantage to cater to the western and the southern markets,” said Ashok Kajaria, chairman of Kajaria Ceramics.
A year ago, Kajaria Ceramics acquired 51 per cent stake in another Gujarat-based firm Soriso Ceramic for Rs 5.6 crore in an all-cash deal.
Incorporated in 1988, Kajaria Ceramics manufactures and sells ceramic floor and wall tiles across the country. It also makes polished vitrified tiles and glazed vitrified tiles.