Ceramic tile manufacturer H&R Johnson is in talks with the UK-based Johnson Ceramics International for a strategic global alliance.
Industry sources indicated that if the deal sails through, the Rs 926-crore (Rs 9.26 billion) H&R Johnson could significantly boost its exports, which currently contribute negligibly to the business.
The partnership would scale up the company's exports of high-end vitrified tiles and give access to new markets such as Africa, West Asia and Greece, while consolidating its presence in the US, the UK and the Far East. In India, the company retails vitrified tiles under the Marbonite brand.
According to a source close to the development, "The deal will push-up H&R Johnson (India)'s exports in the next two years. The company is also planning major investments to scale-up its export portfolio." Company officials refused to comment on the development.
H&R Johnson's attempts to clinch the global alliance is close on the heels of its recent marketing agreement with Twyford, a UK-based luxury sanitaryware brand.
The company, which aims to diversify to a complete bathroom solutions provider, is expected to launch the Twyford range of super premium bathroom accessories and sanitaryware in the next couple of months through 40 luxury stores in 25 cities. It intends to ride on the existing distribution network of 1200 dealers to market Twyford range in India.
In recent times, the company has been focusing on the luxury segment to achieve the target of Rs 1,200 crore (Rs 12 billion) by FY08. H&R Johnson markets its sanitaryware and bathroom accessories through its brand Milano.
Currently, Milano contributes only 3 per cent of the company's revenues. It is expected to go up to 10 per cent in the next three years.
The Indian tile industry is estimated at Rs 7,000 crore (Rs 70 billion) while the luxury bathroom segment is pegged at Rs 150 crore (Rs 1.5 billion).
