Morbi based Simpolo to set up JV with Italian firm Emilceramica

Ahmedabad, 4 November 2014

Gujarat’s Morbi based Simpolo Vitrified (P) Ltd, one of the leading manufacturers of technical tiles in India, has tied up with the leading Italian ceramic tiles maker Emilceremica to set up a Greenfield tiles manufacturing facility at Morbi with annual capacity of approximately 3.5 million square meters. Both parties will hold 50% equity each in the proposed joint venture, whose total planned investment is about Rs. 125 crores.

The new plant will generate employment for about 400 people. The JV intends to export more than 50% of production to Europe, the US, South American and key countries in Asia Pacific; the balance will be sold in the domestic market, offering to Indian consumers and leading real estate developers products of Italian design and quality at Indian prices. Emilceramica will provide the technical knowhow, graphics & unique surface finishes for which it is known internationally and Simpolo will leverage its expertise & strength for production and backward as well as forward market integration.

Today the parties have signed the agreement for establishment of the JV to be named as Simpolo Emil Ceramica (p) ltd.

Addressing the media after signing the agreement, Mr. Jitendra T. Aghara, Chairman & Managing Director, Simpolo Vitrified (P) Ltd, said, “Despite the phase of recession, the Indian realty market is scaling new high in terms of architectural innovations & designs, but the fraternity in this field, at times, is not able to execute their dream projects the way it wants either due to lack of best in class products or due to higher cost of such products. The new JV by Simpolo is aimed at filling such gap by offering world class glazed vitrified tiles, which not only stand second to none when it comes to quality or design, but also come with knock-down price.”

Speaking on the occasion, Mr. Luca Majocchi, CEO, Emilceramica Group, said, “India is one of the largest tiles markets and one of the most powerful manufacturing platforms in the World. This is why we see India as the strategic place to build a state-of-the-art production facility, to manufacture products of world-class quality at competitive costs. Before finalizing our joint venture, we have thoroughly tested products manufactured by Simpolo in our laboratories in Italy. It was a pleasant surprise that these products already met international quality standards. Then, we have spent time with Simpolo’s promoters and managers to align our views and we have been impressed by the depth of knowledge and quality consciousness of Simpolo. All suggested that entering into an agreement with Simpolo was the right thing to do.”

“With this JV, we are moving one step forward towards realizing our ultimate goal of bringing truly world class products for Indian consumers at affordable prices. It is culmination of Simpolo’s quest for transforming itself from a good organization to a great organization”, said Mr. Anil K. Beejawat, Group CEO, Simpolo.

Tecnova India acted as the advisor to Emilceramica and EY acted as the advisor to Simpolo.

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Simpolo Group is a leading Indian wall and floor tiles as well as sanitaryware manufacturer, operating since 1977. The company owns state-of-the-art production facilities in Morbi and has the second largest production capacity in India of vitrified tiles. Simpolo has a turnover of INR 500 crores, with a product range comprising more than 1,000 sku’s. The company has an all India presence, with a strong network of 800 dealers all over the country Simpolo exports to South America, Germany, Middle East and Africa.

Emilceramica Group is a leading Italian ceramic tiles manufacturer, operating since 1961. The company has manufacturing operations in Italy and Ukraine, complemented by sales and distribution subsidiaries in the US, Brazil and Hong Kong. Emilceramica serves customers in over 100 countries, with a turnover of 190 Euro million (~INR 15,000 crores) and an EBITDA of 32.5 Euro million (~INR 2,600 crores), for a margin of 17%. The company sells its products under four different brands (Emilceramica, Ergon, Provenza and Viva), with a total of 80 collections for about 1,400 sku’s.