Ahmedabad (Gujarat) [India], Sep 18 (ANI / NewsView): Asian Granito India Limited (AGIL), manufacturer of one of India’s leading tile brands, expects exponential growth in its export business in the current fiscal year.
Anti-Chinese sentiments, declining export duties to the United States, robust export orders from the United States, Europe, the United Kingdom and the Middle East are boosting export activity during the current fiscal year and are expected to accelerate in the coming months.
The company plans to register export business of around Rs 350 – 400 crore in the current fiscal year of FY21-22 and also aims to expand its trade network to more than 120 out of 100 countries currently. For FY20-21, the company’s consolidated export sales were reported at Rs 216 crore.
Asian Granito is one of the largest tile exporters among the organized players in India. The company’s consolidated exports increased to about 17 percent of total sales in FY21 from 14 percent in FY20. For the three months ended June 2021, the company reported consolidated exports of Rs 53.19 crore despite covid, rising freight costs and container availability issues.
Kamlesh Patel, President and CEO of Asian Granito India Ltd., said: “Despite the challenges of COVID, demand from international markets has remained very strong and has injected fresh blood into the Indian ceramics industry. are steadily increasing due to the ongoing feud between the United States and China. All major industry players are currently working at 80-85% capacity due to strong export orders from US, Europe, UK and Middle East markets . All of the factories in Asian Granito are currently operating at 95% over capacity utilization. Globally, India ranks 2nd and produces 12.90% of the world’s ceramic tile production. The increase in tariffs on Chinese tiles has made Indian tile products more competitive in world markets. Along with recent global developments, India’s share in world trade is expected to improve significantly. The United States has imposed anti-dumping duties of up to 356 percent and anti-subsidy duties of up to 358.8 percent on Chinese ceramic tile products.
The company recently announced a rights issue of Rs 224.65 crore to prepay / redeem certain outstanding loans, thereby meeting working capital requirements for the company’s business operations and general corporate purposes. . The rights issue is being offered at a price of Rs 100 per share – 40 percent off the current share price of Rs 166 per share on September 3. The rights issue ends on October 7, 2021.
The Company will issue 2,24,64,188 fully paid participating shares with a par value of Rs. 10 each for cash priced at Rs. 100 per participating share (including a premium of Rs. 90 per participating share) totaling Rs 224.65 crore based on the rights of eligible shareholders in the 19:29 report (19 equity shares for every 29 fully paid equity shares held by eligible shareholders of the Company, as of the record date) .
In addition, to strengthen international business and boost exports, the company launched an 18,000 square foot “AGL Export House” in Morbi – India’s hub for ceramic tiles and sanitary ware. The export house unveils the full line of tile, sanitary ware and bath products including 3000 products and more in all sizes, designs and finishes in one place for business partners around the world and aims to strengthen its presence in international markets.
For fiscal year 21, the company reported net profit of Rs 57.23 crore on a consolidated basis, representing 36% year-over-year growth. Net sales for FY21 were reported at Rs 1,292 crore with 6% year-on-year growth and EBITDA was reported at Rs 135.95 crore with 16% year-over-year growth. The EBITDA margin improved 91 basis points to 10.5 percent in FY21 while the net profit margin improved 100 basis points to 4.4 percent.
Asian Granito India Ltd offers the widest range of products, including ceramic floors, digital walls, vitrified, parking lot, porcelain, vitrified vitrified, exterior, natural marble, composite marble and quartz, etc. To take advantage of synergies, the company entered the sanitary sector and recently the company launched the CP Fittings and Faucets division to provide “complete bathroom solutions” under the AGL brand.
The company expects higher sales in the coming quarters due to its dominance in BC class cities and targeted market penetration. The company aims to increase its retail touchpoints to over 10,000, expand its exclusive showrooms to over 500.
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