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Somany Ceramics Limited announced three major board approvals for strategic investments

ICICIdirect Research 14 Jul 2026 DISCLAIMER

News: Somany Ceramics Limited announced three major board approvals for strategic investments. First, the board granted in-principle approval to invest up to ₹58.8 crore for a 49% stake in Siravit Ceramics Private Limited to build a glazed vitrified tiles manufacturing capacity of approximately 9 million square metres per annum for the Southern market. Second, the company approved an investment of up to ₹2 crore in Nepalese company V.S. Industries Private Limited to acquire a 50% stake, aiming to expand its presence in the construction chemicals sector in Nepal. Lastly, an additional investment of up to ₹15 crore was approved for its existing Indian subsidiary, Sudha Somany Ceramics Private Limited (SSCPL). This capital expenditure is intended to finance the modernization and upgradation of SSCPL's current plant and machinery. The company confirmed that while the subsidiary’s investment is a related party transaction on an arm's length basis, the other two investments are not.

View: This will increase the tiles capacity of Somany Ceramics to ~65.6 msm from ~56.6 msm in FY26, an increase of 15.9%. With the capacity utilizations of the Company reaching ~82% in Q4 FY26, this capacity expansion will help Somany Ceramics to reduce its dependency on outsourced manufacturing and improve its overall margins.

Impact: Positive

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