The Indian operations is emerging as a major manufacturing centre owing to lower production costs as Johnson India has bagged an order worth around Rs 40 crore for supplying around two million sq mtrs per annum.

Meanwhile, Johnson has completed the acquisitions work of acquiring EID Parry's tile division. This plant will be operational by the first week of February and the product should roll out by end of the month, H&R Johnson vice-president-sales R Kurup, said.

This plant will be utilised for the manufacture of large size wall tiles. The company is also expanding capacity at its existing plat at Kunnigal with an investment of around Rs 12 crore for manufacturing floor tiles. With this expansion, the company will have a wall and floor tile plant in all its manufacturing regions. The total capacity of Johnson will go to 2,49,000 tonnes and the turnover is expected to touch Rs 270 crore by 1999-2000.

Kurup was in Pune for opening Johnson's new divisional office-cum-depot for looking into marketing for Pune, rest of Maharashtra and Goa. Kurup said that the company had adopted a regionalisation strategy to meet local demand with local supply. As the company had manufacturing locations in central, western and southern regions of the country it could adopt this strategy which would give it a competitive edge, Kurup said. This reduces delivery time, brings down freight costs and quicker response time.

On this occasion the company launched a new range of vitrified tiles under the brand name Marbonite for the premium-end of the market and positioned as an alternative to Itallian marble. Marbonite is being manufactured at the company's plant at Pen, near Alibaug.

The vitrified tile segment is in its nascent stage with only three million square meter per annum. The usage is increasing with retail chains, restaurants, corporate offices and hotels opting for vitrified tiles which have finishing close to natural stones. Expecting good prospects, the company is already planning expansion by adding a second polishing unit at its Pen unit. The Rahejas and parent company have pumped in Rs 280 crore into the company for its modernisation and expansion.