In a strategic move towards vertical integration, Asian Granito India Ltd (AGL), a prominent player in luxury surface products, has ventured into sanitaryware production. The company has officially commenced commercial operations at its wholly-owned subsidiary, AGL Sanitaryware Pvt Ltd in Morbi. This marks a significant departure from the reliance on third-party sourcing to internal manufacturing, aligning with the company’s commitment to quality and innovation.
The state-of-the-art sanitaryware plant boasts an installed capacity of 0.66 million pieces per annum and began commercial operations on October 1, 2023. AGL aims to position itself as a top player in the sanitaryware space, mirroring the success it has achieved in the tiles sector.
Kamlesh Patel, Chairman and Managing Director of AGL, expressed the company’s strategic shift, stating, “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. And to fortify its presence and enhance brand experience, AGL has strategically appointed a Chief Operating Officer with over 25 years of expertise in the Bathware industry, encompassing Sanitaryware and Faucetware. This move aligns with the company’s commitment to strengthening its footprint and navigating new avenues for growth.”
Morbi, renowned as India’s hub for Ceramic Tiles & Sanitaryware, plays a pivotal role in AGL’s expansion strategy. The region, contributing to over 80 per cent of the country’s total production in this sector, provides a fertile ground for the company’s ambitious goals. AGL has initiated an Enhanced Strategic Integration Programme (ESIP) to achieve a long-term vision of a total revenue of Rs 6,000 crore.
The foray into the sanitaryware sector follows AGL’s successful rights issue in May 2022, where the company raised Rs 441 crore. The proceeds were judiciously utilized to set up two new state-of-the-art manufacturing facilities in Morbi, dedicated to Value-Added Luxury Surfaces & Bathware Segments, including Glazed Vitrified Tiles (GVT) and Sanitaryware.
Hiren Patel, Associate in the AGL Bathware division, expressed optimism about the company’s future in the sanitaryware space, stating, “The Company envisions rapid growth and an increased market share in the sanitaryware space in the coming time. Company expects turnover of around Rs 400 crore from Sanitaryware & Bathware division in five years.”
In just two decades, Asian Granito India Ltd has emerged as India’s leading Luxury Surfaces and Bathware Solutions brand. The company’s extensive product portfolio includes Tiles, Engineered Marble and Quartz, Sanitaryware, and Faucets. With 235 plus exclusive franchisee showrooms, 11 company-owned display centers, and a robust marketing and distribution network across India and 14,000 plus touchpoints worldwide, AGL continues to solidify its position among the leading ceramic tiles companies in India and as an emerging brand in the global markets.