H & R Johnson in collaboration with Hyderabad-based Sentini Technologies intends to set up a ceramic tiles manufacturing facility in Krishna district of Andhra Pradesh envisaging an investment of Rs.65 crore. The plant with a capacity of 25,000 sq.mt per day would be set up by Sentini Cermica Ltd. a 50:50 joint venture between the two companies.

The project will be implemented in two phases with the first phase envisaging a capacity of 12,500 m² will be commissioned in January 2004 while the second phase will be completed by March 2005. A provision for scaling the capacity to 50,000 m² per day has also been made. The scaling up is estimated to involve an investment of Rs.35 crore.

The project would be funded by Rs.25 crore equity and Rs.40 crore debt to be provided by Indian Overseas Bank, ING Vysya Bank and UTI Bank. The company has also entered into an agreement with GAIL India for supply of natural gas from KG Basin.

The project would be based on the latest technology, and is also expected to have the longest kiln in the Indian ceramic industry.