Mumbai:Tile company Asian Granito India Limited (AGIL) today said it has completed a major expansion project at its step subsidiary Crystal Ceramics with a total investment of Rs 170 crore.

AGIL acquired Artistique Ceramic last year through amalgamation scheme approved by the Gujarat High Court, and holds 70 per cent in the ceramic firm through Kediya Ceramics.

“Acquisition of Crystal Ceramics was a strategic decision as along with the product range it also enjoyed a natural gas supply arrangement with ONGC which is significantly lower than the prevailing market price,” Kamlesh Patel, Chairman and MD, Asian Granito India, said.

“With this expansion, production capacity of Crystal Ceramics has reached 27,000 square meters a day. We also have the required infrastructure for future expansion at Crystal Ceramics, he added.

The new plant will be making double charged vitrified tiles in the large format of 800 X 800 mm and 1000 X 1000 mm for domestic market and exports.

Post amalgamation, the total capacity of AGIL, including its subsidiaries and outsourcing, will reach 1 lakh square metres a day.

On the back of rising urbanisation and growing disposable income, rural and export market have witnessed a surge in demand in recent times.

AGIL also plans to strengthen retail presence by ensuring that each and every customer has an option to go through entire range of products that we offer, the company said.

The Indian tile sector is estimated at Rs 26,000 crores as of fiscal 2015-16, and is expected to grow at a CAGR of 13 per cent, according to industry estimates.

Headquartered in Ahmedabad, AGIL is listed on NSE & BSE and had reported consolidated gross revenues of Rs 1,086 crore in 2015-16.