KOCHI, February 7: Pune-Based Pedder & Pedder Tiles Ltd (PPTL), manufacturer of ceramic wall tiles and floor tiles, sees great business potential in Kerala. To augment its already strong market presence in the state, the firm is planning to open an exclusive distribution outlet here in a month, according to chairman and managing director GN Pedder and director DA Kotian.It has 22 distributors in Kerala. 20 per cent of the company's production is sold in the state. It claims 15 per cent market share in the State.
Pedder said despite the recession looming all over the construction scenario, the Kerala market has been giving tremendous response in ceramic tile demand. " The demand is growing day by day and we are making every effort to meet the demand", he said. "Keralites being not very much accustomed to the flat system are opting for bungalows and that too well designed and decorated ones. That may be one of the reasons for our success in the state," Pedder said. However Pedder said the company has noplans to set up a manufacturing plant in Kerala.
"We had conducted a survey in this regard, but found the situation is not very encouraging. The power crunch and the labour unrest are the main reasons for opting out the state."
PPTL has plans to enhance its production capacity from existing 44,000 tonnes to 66,000 tonnes per annum. To finance expansion programmes the company is planning to come out with a public issue during the second half of 1998. Declining to divulge the exact details of the issue DA Kotian said, "A firm decision on public issue will be taken only after evaluating the post-poll scenario and the coming budget."
The company will be be issuing bonus shares in the ratio of 1:1 shortly, he informed.
Kotian said PPTL was the only company which has applied for patent rights for its ceramic tiles design. "We hope it will be through soon," he said. As part of the expansion programme the company has plans to set up Rs 35-45 crore Granite tile plant in Pune. The production is expected tostart within 18 months.
PPTL uses a unique technology called `Monoporosa' or single firing process of wall tiles which, according to Kotian, has several advantages over the prevailing double firing process. The heating time required in the `Monoporosa' method is just 45 minutes per batch compared to 45 long hours in the normal conventional firing process, he said.
He is PPTL is performing quite impressively for the third consecutive year. Sales turnover shot up to Rs 43 crore in 1996-97 from 27 crore in the previous year. Net profit after interest and depreciation rose to Rs 3.71 crore as against Rs 2.2 crore in 1995-96.
The company expects to achieve a sales turnover of Rs 58 crore during the current fiscal. The company has been giving 15 per cent dividend for the third consecutive year, he added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
