Tiles maker Regency Ceramics, which plans to resume operations after 11 years, is aiming at a Rs 100-crore turnover by FY25, betting on strong demand from the real estate sector as well as its brand value, Managing Director Narala Satyendra Prasad told Moneycontrol in an interview.
The company, which had begun operations in 1985, had manufacturing units in Puducherry, Karaikal and Yanam. The one in Karaikal was sold off recently, while the Yanam plant, which was the victim of 2012 industrial riots, will undergo a revamp.
In 2012, a labour unrest broke out in the Yanam plant and workers set ablaze the machinery, vehicles, raw materials, finished goods and records of the company, driving Regency Ceramics to eventually declare a lockout. The share price of the company lost more than 80 percent in the last decade after the incident.
The company chalked out a Rs 100-crore revival plan for its Yanam plant earlier this year with the first production line expected to start in January 2024. "We are hoping to start the trial runs in January and within 15-20 days after the trials, we will start the commercial production," Prasad said.
"We have decided not to use the old machines, but we have four lines that are quite recent in the sense that the size of the kiln is enough to be efficient, the capacity of the presses is also good enough to cater to the market demand," Prasad said. Rest of the three production lines will be operational in phases. The fourth line is expected to begin production by the first quarter of 2025.
The company had recorded a turnover of Rs 178 crore in the financial year of 2011-12 and over Rs 200 crore in 2010-11. When asked about the the turnover target after the revival plan, Prasad said: "I am confident to reach Rs 100 crore turnover by FY25."
It is expecting to begin with the supply of cool roof tiles next year anticipating strong demand from the southern states ahead of the summer months. The Telangana government aims to have a cool roofed area of 7.5 sq km in the first year (2023-24) of the five-year policy. By the end of the policy year, a total cool-roof area targeted is 300 sq km by 2030.
"I expect that we will be well positioned to supply that requirement for either the government or the retail customer customers," Prasad added.
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