Regency Ceramics acquires Segno Ceramics, expands production capacity

AMARAVATI: In a major strategic move, Regency Ceramics, a prominent ceramic manufacturing company listed on the BSE/NSE, has announced the acquisition of Segno Ceramics Private Limited, located in Bapatla district, Andhra Pradesh. This takeover, effective from August 22, 2024, gives Regency Ceramics full control over Segno’s manufacturing plant, marking a significant expansion in its production capacity.

The acquisition was structured as an all-cash deal, allowing Regency Ceramics to expand without the need for heavy capital expenditure, thereby minimising the impact on its cash flows. The newly acquired plant, which spans 50 acres, has an impressive production capacity of 3.6 million square meters (MSM) per year. This will enable Regency Ceramics to diversify its product offerings, including Glazed Vitrified Tiles and Polished Vitrified Tiles, strengthening its market presence, particularly in South and East India.

Satyendra Prasad Narala, Managing Director of Regency Ceramics, expressed optimism about the acquisition, stating, "This strategic move addresses our immediate production needs and enhances our market presence. With our strong legacy and goodwill in states like Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, and Orissa, we are focused on achieving a revenue target of Rs. 100 crores in the next calendar year."

He further stated that the initiative aligns with Andhra Pradesh Chief Minister Chandrababu Naidu’s vision of promoting industrial growth and job creation in the state. "Regency Ceramics is dedicated to supporting this vision by enhancing industrial activity and driving economic growth in the region. With the Andhra Pradesh government’s renewed focus on infrastructure development, Regency Ceramics is poised to play a pivotal role in the state’s industrial revival and contribute significantly to its economic progress," he said.

The facility’s advanced machinery and robust manufacturing capabilities, combined with Regency’s engineering and technical expertise, position the company to capitalise on the growing ceramics market. Strategically located in Bapatla, the plant offers excellent connectivity for exports, being close to both Chennai and Krishnapatnam ports.