Somany Ceramics Ltd Share Price

History of Somany Ceramics Ltd

Somany Ceramics Limited, formerly known as SPL Limited, a part of H L Somany Group, is into manufacture of ceramic tiles. The Company was incorporated in 1968 by Kolkata based Somany Group in collaboration with The UK based Pilkington Tiles. It came into total control of Somany Group in 1995 with the divestiture of entire stake in SPL Ltd. by Pilkington Tiles Holdings, UK in favor of H L Somany and his Group of Companies. Company is a manufacturer and trader of a complete decor solutions and its extensive range of products include Ceramic Wall and Floor Tiles, Polished Vitrified Tiles, Glazed Vitrified Tiles, Sanitary ware, Bath Fittings and allied products. It has manufacturing plants in Kassar (Haryana), Kadi and Morbi (Gujarat). SPL the second largest ceramic tile manufacturer in ... the country diversified into the manufacture of Value added Vitrified Tiles in 1999-2000 and also put up a Floor Tiles plant at Kadi during 2000-01. For Vetrified procelain tiles it has put up a one million square metres per year manufacturing capacity. The technology for Vitrified tiles has been sourced from Leonardo Ceramica, Italy. SPL acquired Orient Ceramics and Industries (OCIL), a company manufacturing tiles located at Sikandrabad in Uttar Pradesh. The company started producing floor tiles from its Kassar Unit in 1992 as per its expansion and diversification plan. It also doubled the capacity of this plant to produce floor tiles as such to cater to almost all segments of the floor tile market. During 1995-96, SPL set up a 5000 sqm/day wall tile unit at Kassar. This unit is capable of producing large size wall tiles, which have already been launched in the market and well, received. Company has introduced High abrasion resistant floor tiles (PEI V grade) several new designs, special effect & better product. The 2.25 million SqM of floor tiles at Kadi plant in Gujarat was commissioned in Nov 2001. During 2002-03 the company has commissioned the expanded its floor tile to 12000 Sq mtr from 6000 Sq mtr by replacing the old plant producing wall tiles in tunnel kilns. During FY 2014, the Company raised Rs. 49,99,99,990/- by way of issuance and allotment of 43,47,826 fully paid-up equity shares of Rs. 2/- each at a premium of Rs. 113/- per share on preferential allotment basis to M/s Latinia Ltd., Mauritius on 19 February 2014. M/s Amora Tiles Private Limited, a subsidiary company in which the company acquired 51% equity stake during the year started manufacturing of ceramic wall tiles at its plant in Morbi, Gujarat from 7 March 2014. During FY 2016, the company added access to 8.29 million square meters of tiles as follows: Somany Fine Vitrified Private Limited, a subsidiary Company commissioned polished vitrified tiles capacity of 4.29 million square meters per annum in October, 2015. Expanded own plant capacity at Kassar (Haryana) in March 2016 to produce additional 4 million square meters per annum of glazed vitrified tiles. Post expansion, the own tile manufacturing capacity increased from 21.55 million square meters to 25.55 million square meters per annum, subsidiary/associates' tile manufacturing capacities increased from 20.97 million square meters to 25.70 million square meters per annum at the end of year under review. In addition, the Company has access to about 9.0 million square meters of tiles through other vendors. The aggregate access to capacity is about 60.25 million square meters at the end of financial year 2016. In addition to the above, the Board of Directors of the Company approved expansion of existing capacity of Somany Sanitary Ware Pvt. Ltd., which has become subsidiary of Somany Ceramics during the year under review, from 3.03 lacs pieces per annum to 9 lacs pieces per. During FY 2016, the Company issued and allotted 35,34,600 equity shares of face value of Rs 2/- each of the Company on 22 December 2015 at a price of Rs 339.50 per equity share (including share premium of Rs 337.50 per equity share) to Qualified Institutional Buyers under Qualified Institutional Placement aggregating to Rs 11999.97 lacs. During FY 2016, the Company has fully utilized Rs 5,000/- lacs raised through private placement of equity shares in February 2014 for the purposes the funds were so raised. During FY 2016, M/s SR Continental Limited, a wholly owned subsidiary Company has closed its manufacturing operations. The trading of ceramic and allied products also slowed down during the year. M/s Somany Global Limited, another wholly owned subsidiary Company continued its operations of selling tiles and sanitary ware till July 2015, post which there is no business activity in the Company. M/s Somany Fine Vitrified Private Limited became subsidiary during the year post increasing the equity stake upto 51%, has completed commissioning of 4.29 million square meters per annum of polished vitrfied tiles and had started its production in October, 2015. M/s Somany Sanitary Ware Private Limited, became subsidiary during the year post increasing the equity stake upto 51%, has a manufacturing facility to produce 3.03 lacs pieces of sanitary ware per annum. During FY 2018, the Company launched a fresh and peppy 360-degree TV advertisement campaign, Aapka style, Somany style', which reinforced the brand's commitment to meet the diverse customer personalities and requirements through its vast enriched product portfolio. The campaign unfolded with a power-packed all-round outreach and engagement plan across media vehicles. The brand had a significant presence across digital, retail, radio, print, cinema and TV with an estimated 1000+ GRPs (Gross Rating Points). During the year 2018, to cater the dynamic requirement of customers, the company launched two new product ranges Duragres Tesoro & Glosstra Plus that received a good response from the market. Keeping up the tradition of strengthening the distribution network and expanding footprints, it opened about 100 showrooms/ display centres across the country. During FY2018, the Company increased equity stake in M/s. Sudha Somany Ceramics Private Limited (formerly known as Sudha Ceramics Private Limited) from 50% to 51% on 20th September, 2017 and it became Subsidiary of your company and also acquired 51% stake in M/s Amora Ceramics Private Limited thereby making it subsidiary of the company. The Company further increased its stake in M/s Sudha Somany Ceramics Private Limited from 51% to 60% on 1 May 2018 and also acquired 51% stake in M/s Karanjot Enterprises Private Limited on 1st May, 2018 which is engaged in the business of manufacturing and selling of Bath Fittings items such as faucets, showers etc. During FY 2018, there was no business activity in M/s SKPL Ceramics Private Limited (Formerly known as Somany Keraben Private Limited), a 50:50 joint venture between the Company and M/s Keraben Grupo S.A. (Formerly known as M/s Keraben S.A.) therefore Joint Venture Agreement executed between the Company and M/s. Keraben Grupo S.A was terminated during the year and an application to remove the name of M/s. SKPL Ceramics Private Limited from the register of Companies was filed, which is under process. In 2018-19, the Company launched two luxury products: A faucet (part of the French Collection) and a large tile (1,800x2,400 square metres), launched three experience centres in Noida, Bengaluru and Pune; it introduced bathware vans based on the concept of mobile studios. The Company launched the Titanium Club Group for dealers in addition to the existing Platinum Club and Gold Club. It also launched its latest state-of-art MAX range, comprising of large format tiles within the Glazed Vitrified Tiles vertical called Duragres. The second high landmark event was the launch of the French Collection from the Bath fittings division, where the Company faucets. The Company commissioned its first manufacturing facility in South India in 2019. It launched Water Heaters in the Bathware division . During the year 2019, Company increased equity stake in M/s. Sudha Somany Ceramics Private Limited from 51% to 60% on 1st May, 2018 and also acquired 51% stake in M/s Somany Bath Fittings Private Limited (formerly known as Karanjot Enterprises Private Limited) on 1st May, 2018 which is engaged in the business of manufacturing and selling of Bath Fittings items such as faucets, showers etc. In 2023, the Company increased its capacity in tiles significantly by way of expansion/ modernisation at three different locations. As a result, the access to tile capacity increased to ~76 million square meters (msm) divided amongst its own plants (33.45 msm), subsidiaries/associates (28.41 msm) and other outsourcing tie-ups (~14 msm). In the Bathware segment, Company had manufacturing capacity of 0.78 million pieces per annum of sanitaryware and 1.13 million pieces per annum of bath fitting items in its subsidiaries. The capacity of bath fittings plant doubled from 0.65 to 1.13 million pieces per annum during the year. The Company launched a new series of Tile designs, called 'Repliq'. In 2022-23, the Company commissioned an expansion capacity of 11 million square meters (msm). The Company commissioned its first CONTINUA+ Compaction Technology plant for slabs and tiles in January, 2024. It launched Somany Max Coverstone collection in FY 2024.