Regency Ceramics has announced a structured takeover of Segno Ceramics located in Bapatla district in Andhra Pradesh, and this deal will grant the company complete control of the manufacturing plant, effective from 22 August, 2024. The expansion aligns with Chief Minister Chandrababu Naidu's vision of fostering economic growth and creation of job opportunities within the state.

Spread over 50 acres, the plant has a production capacity of 3.6 million sq. mtrs. (MSM) per year. The facility will enable Regency Ceramics to manufacture a diverse premium products including glazed vitrified tiles and polished vitrified tiles, and the move addresses the company's immediate production requirements and enhances its market presence. 

Regency Ceramics has entered into an agreement without the burden of heavy capex spend, ensuring a marginal impact on cash flows. The all-cash deal will strengthen its market position, particularly in South and East India. It is focused on achieving a revenue of Rs 100 crore in the next calendar year.

The advanced machinery and robust manufacturing capabilities at the new facility will enable the company, utilising its engineering and technical expertise to capitalise on the expanding ceramics market. Strategically located in Bapatla, the facility provides connectivity for exports, due to its proximity to Chennai and Krishnapatnam ports.

Hyderabad-based Regency Ceramics has one of the largest and best-in-class manufacturing unit at Yanam with a scalable production capacity of 25,000 sq. mtrs. per day.