Tiles company Asian Granito India Limited (AGIL) is aiming to increase its retail touchpoints to over 10,000 and expand exclusive showrooms to more than 500. Going forward, the company plans to increase retail sales to 50 percent of total sales.
Asian Granito has gradually shifted from a B2B to B2C business model, focusing on Asset light and Capital light model for expansion.
At present, its retail sales contribute 42 percent of the company's total sales which were around 20 percent a few years back. The improvement in retail sales has resulted in creating a strong brand value for the company, reduced dependency on low-margin project business, and improvement in margins.
The company is aiming to continue the strong growth momentum in FY22. Strategic growth initiatives, operational efficiencies, financial prudence, geographical and product expansion along with low capex and asset-light model for expansion are likely to drive the growth in the revenue and margins for the current financial year.
Asian Granito has recently announced a rights issue of Rs. 225 crore, proceeds of the issue to be utilised to reduce debt and for expansion purposes.
For the Q4FY21, the company posted healthy 68 percent growth in net sales, 100 percent growth in EBITDA, and 181 percent growth in net profit Y-o-Y. Exports for Q4FY21 registered 42 percent growth. This performance was achieved on the back of robust demand in Tier II, III cities, and rural areas along with strong demand from exports.
Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd, said, “Company has taken many initiatives in the last few years for improving operational efficiency, financial prudence, cost optimisation, which has resulted in the strong performance in the Q4FY21.”
“Further in-order to arbitrage the price of natural gas, management has decided to replace natural gas with Propane gas whenever the price of propane goes below the natural gas price. We believe that demand is likely to remain strong in domestic as well as international markets on account of government spending, the revival of demand in Tier II and III cities, replacement demand, etc,” he added.
Asian Granito India has the widest range of products including ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble, and quartz, etc. To provide a complete bathing solution to its customers, the company added CP Fittings and Faucets to its sanitary division.