Aparna Enterprises to commission Rs 320 crore tile unit by July

Real estate company Aparna group is all set to commission a major backward integration project, a ₹320-crore tile manufacturing unit at Peddapuram in East Godavari district of Andhra Pradesh.

The two-decade-old Hyderabad-based real estate company has taken up a number of backward integration projects, including manufacture of uPVC windows, sanitary ware, 12 ready mix concrete plants, and brick making, has now diversified into tiles, with a greenfield manufacturing unit.

Expansion plans

The company is also considering a buyout or strategic stake acquisition of a tile unit in Gujarat to expand its product portfolio in the North.

SS Reddy, Chairman and Managing Director of Aparna Group, said, “The company is gearing for the next phase of growth.”

While the real estate-cum-construction company closed last financial year with a turnover of ₹800 crore, the enterprises business which covers several backward integration projects closed with revenues of ₹500 crore.

In the phase one of the tile unit, now ready, ₹200 crore has been invested with a capacity to produce 1.75 lakh sqft of tiles daily. This will be doubled with the completion of the project by next year and contribute to about ₹600 crore revenue, Reddy said.

Realty Ventures

Referring to the real estate business, the CMD said that thus far the company, which has a land bank of over 800 acres, has completed over 18 million sqft of residential space and has a strong pipeline of about 10 million sq ft. “We are also seeking to enter retail, entertainment, and commercial space. This could be through partnerships,” he said.

“The new projects include a luxury apartment venture Aparna Sarovar Zenith and our first affordable housing venture close to the IT hub of Hyderabad,” he said.

The Aparna Sarovar Zenith project will be taken up on a 24.5-acre site where 5 million sqft spread across 2,475 units will be developed. The affordable housing project will have apartments in the 800 to 1,500 sqft size range, priced at ₹20 lakh to ₹45 lakh.

Both these projects will target customers in the financial district offering luxurious lifestyle with good connectivity.

Interview with Ashwin Reddy in an Architecture Magazine

Ashwin Reddy, MD, Aparna Enterprises Ltd. (a part of Aparna Group), in an interaction with Kajol Tamang talks about their new venture into manufacturing tiles with the new brand VITERO backing with 26 years in distribution of building materials.

What is the key reason for Aparna’s paradigm shift from distributing tiles to now manufacturing them as well?

Starting as a tile distributor as the core business of Aparna, we also realized the customer’s need for premium tiles in the given period of time is crucial. Through backward integration from tiles distributing company and moving to real estate, uPVC doors and windows, Ready mix concrete, lead-free profiles, Aparna is now entering into tiles manufacturing with the new brand VITERO. This approach helped Aparna Group to improve on better efficiency and saving cost.

Can we expect the presence of your company in various other parts of India in the near future?

Aparna Enterprises is already present in most of the cities of India through our uPVC and RMC products. We have seen a steep increase in our sales and it sounds very encouraging for us to be present across the country with all our products. Currently, we are building our dealer networks for VITERO tiles division in South India, and soon we want to expand our dealer network and operations throughout India. The infrastructure and urbanization policies driven by the government will bring in a good demand for building materials. We would like to participate in this growth initiative by producing quality building materials for our customers.

Guide us with the technology used in the unit.

We are very proud to say that Aparna Enterprises is one of the pioneers in bringing the world-class Nanotech process to India. VITERO tiles are manufactured using advanced feeders; NANOTECH COATING TECH to give the highest quality double charged vitrified tiles. Our technological prowess will let us manufacture premium tiles with long-lasting shine and toughness. Nano polishing machine will help us in achieving sheen that stays for long compared to the shine produced using old technology. Our advanced high technology 900,000 sq.ft plant in Kakinada (AP), can manufacture 15,000 sq. mts of double charged vitrified tiles in a day with consistent quality and unparalleled uniformity in colour, design and size. Our production line is backed by SACMI, Keda & Appel technologies along with an automated assembly line. Aparna Enterprises is also introducing the most sophisticated Kiln in India with the launch of VITERO – the 265-meter-long SACMI kiln is the longest in south India and third largest in India.

Considering eco-friendly uPVC products by your company, is VITERO Tiles an eco-friendly product?

Aparna Enterprises is committed to practicing environmental sustainability in all our divisions, be it constructions, Ready Mix concrete, uPVC doors & windows, profiles, and tiles. We will be using only natural gas for VITERO which will be supplied by Bhagyanagar Gas limited from Kakinada KG basin. Our state-of-the-art manufacturing unit along with new generation technologies focuses on environmentally friendly processes, energy efficiency and thus reducing carbon footprint.

What gives you an edge over your competitors?

The advanced technology that Aparna Enterprises uses to manufacture high-quality premium double charged vitrified tiles is the key differentiator. We not only have the highest number of feeders, but also a state-of-art facility to manufacture large quantity of tiles to meet the market demand with no or very less waiting time. The 16 feeder capacity with four SACMI presses at VITERO facility ensures multiple options, variations in designs and shades of tiles.

What is your retail strategy and after sales service like?

We aim to be present in both Tier I & II cities along with small towns of South India and then expand our operations throughout India. We already have a good dealer network in all our focus cities. We want to keep all our channel partners happy by giving them good quality VITERO double charged vitrified tiles, which not only brings good returns for them but keep them confident about selling a premium product to our customers.

What are the varieties of tiles your company will manufacture?

We have a wide variety of double charged vitrified tiles, designs inspired from global themes. There are a total of 15 designs in four different sizes and four different collections:

1.Globus

2.Ornate

3.Eclectic

4.Grandeur

Also to move into high-end Glazed Vitrified Tiles and Polished Glazed Vitrified Tiles and wall tiles

What are your future plans, prime market and investment details on the unit?

Aparna Enterprises is known for backward integration in sourcing good materials. As part of our strategy, we will be starting our own feldspar processing units. Feldspar accounts to 60% of raw materials we use in our manufacturing tiles and hence we want to make sure that we use good quality material. Also, we will be expanding our VITERO manufacturing plants in Gujarat in coming years.

Inauguration of the Vitero plant by Nara Lokesh, IT Minister, Andhra Pradesh

Aparna Enterprises, part of the diversified Aparna Group, has commissioned a Rs. 320-crore Vitero Tile manufacturing factory in Peddapuram, near the port city of Kakinada, Andhra Pradesh. The Group is in expansion mode and plans additional investments of Rs.1,500 crore to set up new tile factories in Rayalaseema and other regions. Nara Lokesh, AP IT Minister, inaugurated the plant.

Ashwin Reddy, Managing Director of Aparna Enterprises, said, “The demand for higher quality of life is growing. The advanced tile factory will meet the demand for high quality vitrified tiles.” The Vitero Tile Factory is a significant milestone for Aparna Group, as it will help expanding the company’s footprint in South India and across the country.

S Aparna Reddy, Director of Aparna Enterprises, said, “The 9,75,000 Sft Vitero Tile Factory is the first tile production facility of its kind in South India. It boasts of a gas-fired kiln of a length of 265 m, and has the capacity to produce 15,000 sq m per day (5.47 million sq. meters per annum).”

The Rs. 320-crore Vitero Tile Factory is one of the most advanced and competitive in the region and will create value for the group, its customers and the state, Aparna Reddy said. The new plant brings to India the very latest in tile production and nano-polishing technology.

Aparna Enterprises is already the largest tile distributor in South India, and will now produce and supply double-charged vitrified tiles to the market. With 4,000 employees, Aparna Group logged revenues exceeding Rs. 1,500 crore in 2016-17. The Indian vitrified tile market is expected to see a compounded annual growth rate (CAGR) of 25 per cent between 2017-2022.

Foray into a long-winding concrete future?

Can you beat it? A seamless concreting of 8,500 cubic metres in six days; something to write home about

In what could probably a first of its kind initiative in the city, Aparna Enterprises, this week, did the largest concrete pour of 8500 cubic metres or a project of Dakshin Insfrastruture in the Financial District at Gachibowli.

It was a massive seamless concreting work for the raft foundation that was completed in six days and according to the company, is the record performance among all the Ready Mix Concrete companies in the city.

For the structure that is going to stand 22 floors tall and accommodate a hotel and IT space, Aparna used about 3600 metric tonnes of cementfor the concreting work and a large fleet of transit mixers maintained the continuous supply of concrete totalling more than 20000 metric tonnes in weight to the construction site.

“It was a massive concreting job and demanded lot of planning and logistics. And the best part is we could do it in these days of cement shortages,” says T. Chandra Sekhar, Director – Materials & QA, Aparna Constructions. MOre than 150 personnel and a fleet of 40 vehicles were involved in the task.

Five pumps were deployed at different locations and were not stopped, except for maintenance, during the entire six days of operation.

The concreting work project for Ch. Marthanda Rao & Company was put at Rs. 3.50 Crore. By the conventional manual way, the work would have taken anywhere up to 45 days, the company officials say.

It was a challenge and to make it happen, lot of coordination and planning went into the task, says Mr. Chandra Sekhar.

Aparna Enterprises Limited is a building products company manufacturing PVC window and door systems, Ready Mix Concrete, Concrete blocks, bricks and pavers.