Regency Ceramics Fires Up Expansion with Andhra Pradesh Acquisition

Regency Ceramics has announced a strategic acquisition of Segno Ceramics, located in Bapatla district, Andhra Pradesh. The takeover, effective from 22 August 2024, grants Regency Ceramics full control of the 50-acre manufacturing plant, significantly expanding its production capacity. This move aligns with Chief Minister Chandrababu Naidu's vision to drive economic growth and create job opportunities within the state.

The newly acquired facility boasts a production capacity of 3.6 million square meters (MSM) per year, enabling Regency Ceramics to enhance its product offerings. The plant will produce a diverse range of premium tiles, including glazed vitrified and polished vitrified tiles. This expansion is a strategic response to the company’s immediate production needs and is set to bolster its presence in the competitive ceramics market.

Regency Ceramics secured the acquisition through an all-cash deal, avoiding the need for heavy capital expenditure and minimizing the impact on cash flows. This financial prudence positions the company to strengthen its market share, particularly in South and East India, with a revenue target of Rs 100 crore for the next calendar year. The acquisition is expected to play a pivotal role in achieving this ambitious goal.

The advanced machinery and robust capabilities of the Bapatla facility will allow Regency Ceramics to leverage its engineering and technical expertise, capitalizing on the growing demand in the ceramics market. The strategic location of the plant, near key ports such as Chennai and Krishnapatnam, also facilitates seamless exports, enhancing the company's competitive edge in international markets.

With this acquisition, Hyderabad-based Regency Ceramics, which already operates one of the largest manufacturing units in Yanam, is set to further solidify its leadership in the ceramics industry. The company’s expanded production capacity underscores its commitment to innovation, quality, and growth in the rapidly evolving market.

News by Rahul Yelligetti