LIXIL to Invest Approx. US$65m in Andhra Pradesh Plant to Bolster Industry Leadership in India

24.01.2018 Company Information

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LIXIL Corporation (LIXIL), a global leader in the housing and building industry, today announced that it plans to invest approximately US$65m in Andhra Pradesh to establish a state-of-the-art manufacturing facility that will bolster LIXIL’s ceramics production, not only for the fast-growing Indian market but also for the global supply chain network. As part of this effort, LIXIL has completed its acquisition of Sentini Sanitarywares Private Limited, including its recently established contemporary sanitaryware plant. This will be a multi brand facility for LIXIL, with products from GROHE and American Standard being produced here. The factory currently has a production capacity of 1 million units per year, and is designed to upscale annual production to 2 million units in the future. Proudly offering its support to the Indian government’s “Make in India” initiative, the facility will provide employment to about 400 individuals. After the acquisition, the company will be renamed LIXIL India Sanitarywares Private Limited. Mr. Seshagiri Rao Tipirneni, the Chairman of Sentini Group, will continue to be a shareholder and will act as an advisor to the Board of Directors of this entity.

LIXIL President and CEO, Kinya Seto, said, “This investment demonstrates our strong commitment to the dynamic Indian market and its consumers, which is a strategic priority for LIXIL for the future. The move also strengthens our overall ceramics production capacity, enabling exports to key markets such as the U.S.”

LIXIL Asia Pacific CEO, Bijoy Mohan, said, "Asia continues to be a growth driver for LIXIL. Enhanced local capacity along with flexibility and agility in the supply chain will help LIXIL achieve market leadership in India. Our investment in this factory will create significant value for our employees, customers, consumers and communities. We recognize and value the strong relationship with the community that the Sentini group has built. This has come from the inspiration of its founders and the dedication of its employees. We intend to honour it and continue it that way.”

LIXIL India Country Head, Shubhajit Sen, said “LIXIL is a global leader in water technology and sanitaryware; home to brands like GROHE, American Standard and INAX. This investment is another milestone in our journey to replicate our global leadership position locally and transform the industry in India. We see great growth potential in India and, with this investment, aim to capture 15-20% share and lead the local ceramics market in the next 3 years.”

Once initial upgrades have been completed by the second half of 2018, the 45-acre facility is expected to be one of the most technologically advanced plants in India, with the ability to be easily expanded further. The plant will offer training to technicians and staff and will also feature a high degree of automation and technology, to maximize material flow efficiency and production.

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