Somany Ceramics Plans 16 Million Sq Metre GVT Capacity Expansion

Somany Ceramics is preparing to add around 16 million square metres of glazed vitrified tile (GVT) capacity over the next 12 to 18 months. The expansion reflects its growing focus on premium tiles, including larger formats and value-added finishes.

Managing director and chief executive Abhishek Somany outlined the plan during the company’s Q2 FY27 earnings call. A major part of the addition will come from its South India joint venture, Siravit. The company now expects the facility to add 11 million to 12 million square metres, up from the earlier plan of nine million. The expansion is expected to double the plant’s capacity.

The Siravit project is estimated to cost about ₹250 crore, funded through a proposed mix of debt and equity. Somany Ceramics’ contribution is expected to be around ₹60 crore. Production from the expanded facility is expected to begin around September 2027.

Another four million square metres of annualised capacity is expected from debottlenecking existing manufacturing units. Modernisation work is also planned at the Sudha and Vintage facilities, involving investments of approximately ₹15 crore and ₹8 crore. These projects will be funded through internal accruals.

The expansion is tied to a shift in Somany’s product mix. GVT currently accounts for about 45% of its portfolio, compared with 40% to 41% a year ago. As all additional tile capacity is expected to be dedicated to GVT, management sees its share rising to 65% to 70% over the next two to three years.

Somany is also targeting growth in bathware and building solutions. Together, these businesses contribute around 16% to 17% of revenue, a share the company aims to increase to 20% to 25% over the next two to three years. Sanitaryware is expected to grow about 20% in FY27, while building solutions, including adhesives, has been growing at 40% to 50%.

Overall growth is expected to remain in the high single digits in FY28. Higher capacity utilisation, improved joint venture performance and a greater contribution from value-added products are expected to support margins. The expansion will add manufacturing scale while moving Somany towards higher-value tile and building product categories.