Capacity Expansion
Kajaria Ceramics Subsidiary Starts Commercial Production of Tile Adhesive Plant in Tamil Nadu
NSE
kajariacer
BSE
500233
Kajaria Ceramics Limited announced that its wholly owned subsidiary, Kajaria Adhesive Private Limited (KAPL), has commenced commercial production of tile adhesive at its new manufacturing facility in Perundurai, Erode district, Tamil Nadu with an annual capacity of 1,08,000 MT.
PRICE-SENSITIVE TRIGGER
Event: Commencement of commercial production at new tile adhesive manufacturing facility.
Type: Capacity Expansion
Impact: Positive
Immediate Effect: The commissioning strengthens Kajaria’s adhesives business and expands its manufacturing footprint in South India.
Key Metrics:
- Plant Capacity: 1,08,000 Metric Tonnes Per Annum (MTPA)
- Production Commencement Date: May 20, 2026
- Location: SIPCOT Industrial Growth Centre, Perundurai, Erode, Tamil Nadu
- Ownership: Wholly owned subsidiary – Kajaria Adhesive Private Limited (KAPL)
Highlight Metric:
- Kajaria’s new tile adhesive facility has commenced production with annual capacity of 1.08 lakh MT.
What Happened ?
Kajaria Ceramics Limited informed stock exchanges that its wholly owned subsidiary, Kajaria Adhesive Private Limited (KAPL), has started commercial production of tile adhesive products.
The new manufacturing facility is located at SIPCOT Industrial Growth Centre in Perundurai, Erode district of Tamil Nadu. The company stated that commercial production commenced on May 20, 2026.
The development is part of Kajaria’s strategy to strengthen its building materials and adhesives business alongside its core tiles segment.
Key Details
Manufacturing Facility:
- Commercial production started on May 20, 2026.
- The facility is located in Perundurai, Erode, Tamil Nadu.
- The plant is operated by Kajaria Adhesive Private Limited (KAPL).
- KAPL is a wholly owned subsidiary of Kajaria Ceramics Limited.
Capacity Expansion:
- The manufacturing capacity of the plant is 1,08,000 MT per annum.
- Capacity has been specified on a single-shift operational basis.
- The facility will manufacture tile adhesive products.
Strategic Importance:
- The expansion strengthens Kajaria’s presence in construction chemicals and adhesives.
- The facility improves supply chain access to South Indian markets.
- The project supports diversification beyond the ceramic tiles business.
Note:
- The company officially disclosed the commencement of production under SEBI Listing Regulations on May 20, 2026.
Risk Analysis
Key Risks:
- Demand slowdown in real estate could impact adhesive sales growth.
- Raw material cost volatility may affect operating margins.
- Competition in tile adhesive and construction chemicals segment remains high.
- Ramp-up and distribution execution will be important in initial quarters.
Worst Case Scenario:
- If market demand weakens or utilisation remains low, the new facility may initially operate below optimal profitability levels.
Risk Level: Low to Medium
Company Commentary
- Kajaria Adhesive Private Limited has commenced commercial production.
- The facility is located at SIPCOT Industrial Growth Centre, Tamil Nadu.
- Annual production capacity is 1,08,000 MT.
- The disclosure was made under Regulation 30 of SEBI Listing Regulations.
Official Exchange Filing: Kajaria Ceramics Limited