Shares of Asian Granito India surged around 9 percent on December 26 after the company announced the start of commercial operations at its wholly owned subsidiary AGL Sanitaryware at Morbi, which marks its foray into sanitaryware manufacturing.
At 1.39pm, shares of Asian Granito were trading nearly 6 percent higher at Rs 75.85 on the National Stock Exchange.
The news also triggered a spike in volumes in the counter as 48 lakh shares changed hands on the exchanges, significantly higher than the one-month daily traded average of 10 lakh shares.
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AGL Sanitaryware completed the construction of the plant with an installed capacity of 0.66 million pieces per annum. The plant is situated at Morbi, Gujarat, which is known as India's hub for ceramic tiles and sanitaryware. The region accounts for more than 80 percent of the country's total production in this sector.
"Previously relying on third-party manufacturers and imports, the company aims to leverage its extensive marketing and distribution network for tiles to establish a formidable presence in the sanitaryware sector," Kamlesh Patel, chairman and managing director of Asian Granito India, stated in an exchange filing.
"The company envisions rapid growth and an increased market share in the sanitaryware space in the coming time. We expect a turnover of around Rs 400 crore from sanitaryware and bathware division in the next five years,” said Hiren Patel, associate at AGL Bathware division.
The company's long-term vision revolves around achieving a total revenue of Rs 6,000 crore.
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