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Updated on: Saturday, September 18, 2021, 05:46 PM IST

Asian Granito India eyes 100% growth in exports in FY21-22; targets exports of Rs 350-400 cr

ANI
Asian Granito India expects to clock export business of around Rs 350 - 400 crore in the current fiscal of FY21-22. |

Asian Granito India expects to clock export business of around Rs 350 - 400 crore in the current fiscal of FY21-22. |

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Asian Granito India Limited (AGIL), manufacturer of one of India's leading tiles brand is eyeing exponential growth from exports business in the current fiscal.

Anti-China sentiments, lower duties on export to USA, robust export orders from USA, Europe, UK and Middle East are driving the export business in the current fiscal and it is expected to get further momentum in coming months.

The Company expects to clock export business of around Rs 350 - 400 crore in the current fiscal of FY21-22 and also aims to expand its business network in over 120 countries from 100 currently. For FY20-21, consolidated export sales for the company was reported at Rs 216 crore.

Asian Granito is one of the largest tiles exporter among organised players from India. Consolidated export of the company grew to around 17 per cent of total revenues in FY21 vs. 14 per cent in the FY20. For the three months ended June 2021, company reported consolidated exports of Rs 53.19 crore despite covid, freight cost rise and container availability challenges.

Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd. said, "Despite challenges of COVID, demand from international markets have remain very strong and injected fresh blood in the Indian ceramic industry. Exports during the past three months have seen considerable jump and are constantly increasing due to the ongoing spat between the USA and China. All larger players in the industry are currently working at a capacity of 80-85 per cent due to robust export orders from USA, Europe, UK and Middle East markets. All plants of Asian Granito are currently working at 95 per cent plus capacity utilization."

Globally, India ranks 2nd and produces 12.90 per cent of the global ceramic tiles output. Increased duties on Chinese tiles have further made Indian tile products more competitive in the World markets. Together with recent developments globally, share of India in the global trade is likely to improve considerably. USA has imposed anti-dumping duty of upto 356 per cent and anti-subsidy duties of upto 358.8 per cent on Chinese ceramic tiles products.

The company has recently announced a rights issue of Rs 224.65 crore to repay/prepay certain outstanding borrowings, meeting working capital requirements for the company's business activities and for general corporate purposes. Right issue are offered at a price of Rs 100 per Share - 40 per cent discount to current share price of Rs 166 per share on September 3. Rights Issue closes on October 7, 2021.

The Company will issue 2,24,64,188 fully paid-up Equity Shares of face value of Rs. 10 each for cash at a price of Rs. 100 per Equity Share (including a premium of Rs 90 per Equity Share) aggregating to Rs 224.65 crore on a rights basis to eligible equity shareholders in the ratio of 19:29 (19 Equity Shares for every 29 Equity shares fully paid-up Equity Share held by the Eligible Equity Shareholders of the Company, as on the record date).

Further, to strengthen international business and boost exports, company has launched 18,000 square feet 'AGL Export House' at Morbi - India's hub for ceramic tiles and sanitaryware. The export house unveils the entire range of tiles, Sanitaryware and bathware range including 3,000 plus products in all sizes, designs and finishes at one place for the trade partners across the globe and aims to strengthen its presence in international markets.

For FY '21, the company reported a net profit of Rs 57.23 crores on consolidated basis - growth of 36 per cent Y-o-Y. Net sales for FY 21 was reported at Rs 1,292 crores with 6 per cent growth Y-o-Y and EBITDA was reported at Rs 135.95 crore with 16 per cent growth Y-o-Y. EBITDA Margin improved 91 basis points to 10.5 per cent in FY 21 while Net profit margin improved by 100 basis points to 4.4 per cent.

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Published on: Saturday, September 18, 2021, 05:46 PM IST
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