BWI: CERA’s Operating Profit Grows by 33%

Press release from Business Wire India
Source: CERA
Thursday, May 28, 2009 06:15 PM IST (12:45 PM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Commodities & materials, Construction, Financial Analyst, Household & personal care products & services, Retailers, Stock exchanges
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CERA's Operating Profit Grows by 33%


Ahmedabad, Gujarat, India, Thursday, May 28, 2009 -- (Business Wire India) -- - Net Profit up by 30%

- Sales up by 25%

Belying the global recession and consequential slowdown in Indian's realty, the Ahmedabad-based country's leading bathroom solutions major, Cera Sanitaryware Limited, has achieved an operating profit of Rs.31.42 crores, up by 33% from previous year's Rs.23.65 crores. Announcing this to media persons today at a press meet after the board meeting at Ahmedabad, Mr Vikram Somany, Cera's Chairman-cum-Managing Director, attributed this extra-ordinary growth to several marketing initiatives undertaken by the company.

The net profit of the company went up by 30% -- from Rs.10.05 crores to Rs.13.10 crores. The net sales also grew by 25% from Rs.128 crores to Rs.160 crores. Mr. Vidush Somany, Executive Director of Cera said that the company's focus on retail network expansion, rural penetration and concentration on small and medium developers has helped Cera perform better despite the economic downturn.

In 2008-09, Cera continued its marketing thrust by launching several new models-both in the sanitaryware range and in the wellness range. "Soon Cera will launch a leading Italian premium wellness brand in India", said Mr. Vidush Somany.

Elaborating on the rural penetration by Cera, Mr. Santosh Nema, Chief Executive Officer and Director of Cera said that Cera's display vans traveled more than 150 small and medium towns in Gujarat in the last three months showing the products and explaining the features to retailers and end-users.. Such display vans are now in operation in the States of Rajasthan, Madhya Pradesh, Uttar Pradesh, Maharashtra and Andhra Pradesh. Soon, the Cera display vans would be operating in other States also.

Cera which pioneered the retail thrust in sanitaryware in India by opening Cera Bath Studios and Cera Bath Galleries are now launching Cera Style Corners. In the next three months, 100 such Cera Style Corners will be opened, said Mr Vidush Somany. These Cera Style Corners will showcase Cera's premium products in the retailer's showroom in a uniform display style across India.

Cera has added many small and medium builders to its customer list last year. Cera offers value-for-money to these builders and therefore they have found a perfect brand fit.

Cera has also repositioned the brand as Styleware. The new campaign, designed by its ad agency, Dentsu, and released from April 2009, talks about the Cera's premium designs to match upwardly mobile customer's style aspirations.

"Cera is confident of continuing its growth at even higher rate in 2009-10 also", said Mr Somany. Echoing his confidence and optimism, Mr Nema said that a home-grown brand like Cera is better insulated from global recessionary trends because of its lower dependence of exports and bigger single customers.

CERA, which launched sanitaryware in India in 1980, has the manufacturing plant in Kadi near Ahmedabad for manufacturing 2.2 million pieces of sanitaryware per annum, making it the largest Sanitaryware plant in the India. CERA has been consistently growing at above 25% in the past several years. Apart from sanitaryware, CERA also provides taps and shower products, making it a total bathroom solutions provider. Cera also launched premium designer tiles from Italy and Spain through exclusive tie-ups with leading brands like Rondine, Gigacer, etc.


CONTACT DETAILS
Hemant Deswal, Dmas PR, +91 9910887244, hemant@dmaspr.com
Manauti Goel, Dmas PR, +91 9810864864, manauti@dmaspr.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, COMMODITIES, CONSTRUCTION, Financial Analyst, HOUSEHOLD, RETAIL, STOCK EXCHANGES

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