Cera Sanitaryware Ltd will invest Rs 140 crore to increase the capacities of its faucet and sanitaryware manufacturing plants at Kadi in Mehsana district of Gujarat in two years. The capacity of the faucet plant is being doubled from 2,500 pieces to 5,000 pieces per day whereas that of the sanitaryware plant will be raised from 20 lakh to 27 lakh pieces a year.
Cera is also looking for acquisitions in Europe, which would be funded through the company's internal accruals and debt. In the third quarter of 2011-12, ended December 31, 2011, Cera Sanitaryware reported 39 per cent increase in sales and 4 per cent in net profit. While the sales were Rs 82.48 crore (Rs 59.78 crore), the profit after tax (PAT) was Rs 7.95 crore (Rs 7.65 crore). The company recorded a 37 per cent growth in sales in the third quarter against the industry's 18-20 per cent.