MUMBAI: Despite the economic slowdown,SomanyBSE -0.28 % Ceramics has set an ambitious target to increase its topline growth by 20 per cent this fiscal, a topcompany official said.
"The economy is indeed facing tough times, but we don't see an impact on our business because the demand for our products will continue to grow. We expect our topline to increase by around 20 per cent this fiscal,"Somany Ceramics Joint Managing DirectorAbhishek Somany told PTI.
The Delhi-based firm had reported a Rs 31.59-crore net profit from an income of Rs 1,108.51 crore last fiscal. However, Somany said pressure on the bottomline will continue mainly due to the spiraling fuel cost.
"The cost of natural gas, the main fuel used for manufacturing tiles, has gone up sharply of late. This will continue to put pressure on our bottomline. However, our strategies of de-bottlenecking and upgrading our plants and expansion through an asset-light model will help us achieve growth target even in these tough times," he said.
Basing his optimism on bullish long-term outlook for the construction and real estate sector, Somany said this in turn would help the tile industry.
"We have already embarked on expansion plans to meet such future demand. We will adopt a cautious approach and would continue to tread the path of growth mainly through asset- light outsourcing model including expansions of existing joint ventures and forging new alliances," he said.
"Investment in de-bottlenecking and technology upgradation of existing manufacturing plants would also continue," Somany added.