Aparna Enterprises plans to grow the business by 25-30% in FY 2019-20
NEW DELHI: Aparna Enterprises is expecting a growth of 25-30 per cent in the financial year 2019-20, said Aparna Reddy, executive director, Aparna Enterprises. The company’s revenue in FY 2018-19 was about Rs 860 crore.
“In the last six months, we have seen 45 per cent growth in comparison to last year, majorly because of the commercial production of ‘Vitero Tiles’,” said Reddy.
Currently, it contributes 30 per cent of the overall revenue. The company plans to invest Rs 50 crore for its expansion. The commercial production of Vitero Tiles started in August 2017 and we generated revenue of Rs 70 crore in FY 2017-18. But in the next financial year we generated a revenue of Rs 190 crore.
The company through its Kakinada plant caters to the demand coming from Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Maharashtra and Odisha. The current capacity of Kakinada plant is 15,000 square meter per day. It plans to add one more production line in the plant by December 2019.
As to why Aparna Enterprises moved into the tiles business, Reddy says, “As of now there are not many good plants that caters to the demand in South India while the demand is high. Hence, we decided to utilise this demand.”
Ready-mix concrete (RMC) has been another major revenue generator for the company. Of the total revenue, RMC contributes about 45 per cent.
“RMC has grown to about 50 per cent in comparison to last year majorly because we added five commercial plants. In 2018, our capacity 70,000 cubic meter per month which is now close to 1 lakh cubic meter per month.”
In the last one year, the company has opened up one RMC plant at Vishakhapatnam and Vijayawada and three plants in Hyderabad- one along the Patanchal Road, one at Kompally and one along the Outer Ring Road near Shankerpally. The total investment that went into setting-up of these plants and buying and operating its own fleet was Rs 40 crore.
“Demand in Hyderabad has increased exponentially in the last one year and hence to cater to this demand, we set-up three plants at three different locations,” said Reddy.
The company recently announced its joint venture with Honk Kong-based Craft to make aluminium exterior solutions. Aparna holds 74 per cent of the joint entity while Craft holds about 26 per cent. Both the companies together will invest about Rs 30 crore in the first year.
Under this joint venture, the company will set up a manufacturing facility in Bachupally, Hyderabad, spread across 50,000 sq ft, with a production capacity of 0.8 million sq ft per annum initially.
“We expect to commence the operations by July 2019. In the first year of operations we are looking at a turnover of $10 million,” said Reddy. The company plans to cater to South India and Australian market initially.
The uPVC segment contributes about 20 per cent of the overall revenue. Aparna Enterprises plans to invest about Rs 2-3 crore for its expansion in the segment in the current financial year.
“Currently there is not much demand for uPVC products but the scope is high as people start adapting to green buildings and green products demand for uPVC products will increase,” said Reddy. The company has seen a growth of 20 per cent in comparison to the last year. It also plans to increase its capacity from 2.5 lakh sq ft to 3.5 lakh sq ft by May 2019.
Rest of the five per cent of the overall revenue comes from trading of high-end sanitaryware and kitchen products.