New Delhi: Ceramic products maker Asian Granito NSE -1.32 % India Ltd aims to clock Rs 2,000 crore revenue in the next two to three years, helped by expansion of sales network in the domestic market and exports, according to a top company official.
Though the company is anticipating "temporary hiccups due to COVID-19 in the short term", it is confident of bouncing back on its growth path in the long term with its focused growth strategy.
Asian Granito India Ltd (AGIL) expects that demand from real estate sector could take a little longer to recover but growth in the current fiscal could be driven by demand from the retail sector, especially from rural, tier-II and semi-urban areas, and exports.
"For FY 2019-20, the company reported revenues of Rs 1,224 crore with a net profit at Rs 41.9 crore. In the next two to three years, the company has set a target to increase its touchpoints to over 10,000, expand the network of exclusive showrooms to over 500 and achieve the revenue target of Rs 2,000 crore," AGIL Executive Director Prafulla Gattani told PTI.
According to the Gujarat-based company, demand from metros and other major cities, which consists of a bulk of premium products,has taken a hit due to the coronavirus pandemic.
However, semi-urban and rural markets have recovered quickly and demand is coming from these areas.
"Green shoots are visible in demand especially from the rural and semi-urban areas and we believe that demand from these segments are likely to improve further from the current levels," he said.
There is a new demand trend emerging from the rural market as migration of labourers from urban areas resulted in the need for home repairs and renovation.
"We have observed that budget and economic tiles have seen good demand with construction and repair activity taking full pace in the rural market," Gattani said.
AGIL, which has a retail presence with 300 plus exclusive showrooms and more than 6,500 touchpoints, plans to expand them further.
"The company plans to increase its retail touchpoints to over 10,000, Exclusive showrooms to 500 plus," he said.
It is also investing on the digital side and has converted a lot of physical activities into digital mode. This is in addition to traditional methods of communication, sample distribution, approval and showcasing products.
"We are also investing heavily on future e-commerce and digitisation of the company," Gattani said, adding that it has helped in reducing the total cost of sales and branding.
AGIL, one of the largest exporters among organised players, plans to expand exports to over 100 countries.
"The company currently exports to 78 countries and is planning to expand the network to 100 countries in the current fiscal," he added.
In FY 2019-20, AGIL's export revenue was around Rs 170 crore, Gattani said, adding that it is looking to double the same in the next two to three years.
When asked about future investments, he said,"there is no major capex planned in existing capacity but for future growth, we plan to make a need-based investment in coming next three to four years".
"Marble and quartz stone segment is one of the top focus areas for the company and over 80 per cent of the products is exported. We are looking to expand the capacity and also installing a high-tech robotic plant for manufacturing Carrara and Calacatta Quartz stone in the near future," he said.
The company expects the quartz stone and marble segment to have Rs 500 crore turnover in the next two to three years, he added.
Source:-economictimes.indiatimes.com