Pokarna’s wholly owned subsidiary Pokarna Engineered Stone (PESL) has secured exclusive right to use Bretonstone technology in India through March 2020. Pokarna has used Bretonstone technology since 2009, when the company first began processing quartz in its Visakapatnam production facility. PESL plans to expand quartz surfaces production capacity by 130% by building a greenfield production facility with investment of Rs 325 crore. This investment is expected to be completed by June 2018 and PESL will finance this capacity expansion through a combination of free cash flow/internal accruals (Rs 75 crore) and loan facilities (Rs 250 crore). PESL has secured sanction from its lead banker for the term loan of Rs 250 crore for funding this capacity expansion.
The investment in new facility is part of the strategic plan to maintain both export and domestic competitiveness, whilst increasing capacity to meet the growing demands for quartz surfaces in Indian and global market. The new facility will be one of the most-advanced Bretonstone plants of its kind in the world, covering a production area of approximately 50,000 square meters and deploying the latest generation machines and state of the art robots.
The expansion combined with newer technology and exclusive license for India will not only increase PESL’s production capacity, but also will provide competitive and strategic benefits that will serve its long-term growth plans, most significantly the related improvement in delivery times, tapping India market and realizing growth strategy for long term shareholder value creation.
Pokarna is one of the largest exporters of finished granite and engineered stone in India with exports to more than 50 countries globally. The product range of the company includes Slabs, Tiles, Rough block and Cut to size. It is also in the business segment of Apparel, Granite.
| Company Name | CMP |
|---|---|
| Kajaria Ceramics | 1178.20 |
| Somany Ceramics | 441.15 |
| Cera Sanitaryware | 5332.20 |
| Asian Granito India | 75.34 |
| Pokarna | 928.60 |
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