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Kajaria Ceramics board approves acquisition; stk gains-news02042012


Kajaria Ceramics gains over 2% and hits 52-week high of Rs173.85 after the company’s board approves acquisition of 51% stake in Vennar Ceramics based in the state of Andhra Pradesh


Kajaria Ceramics Limited (KCL), in its Board meeting held on 31t March 2012 approved the acquisition of 51% stake in Vennar Ceramics, based in the state of Andhra Pradesh by way of subscribing to fresh equity share capital of the company for a sum not exceeding Rs136.50 million.

Vennar is an advanced stage of putting up a plant to produce 2.30 million sq meters per annum of high end ceramic wall tiles, the addition of which would take the total annual capacity of Kajaria Ceramics to 38.30 million sq meters (including 10 million capacity of subsidiaries).

Mr. Ashok Kajaria- Chairman, Kajaria Ceramics Limited said, “This is the first acquisition by Kajaria in south India. Vennar is putting up a brand new plant which would start commercial production in June 2012. This will help Kajaria to cater to the southern markets from this plant enabling the company to reduce the transit tiinc for the delivery of goods and savings in transportation cost “.

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