Consumer Goods: Cera Sanitaryware

Cera: A Saga of Sustained Growth

How does a company buck the trend and retain leadership position in a challenging market scenario? The Ahmedabad-based Cera Sanitaryware Ltd. is one such example. A special report.

WHETHER GLOBAL OR national, economic recession is like a red rag to a bull when it comes to manufacturing industries – especially for those companies that are engaged in producing consumer goods. Recession strikes them hard, effectively shifts growth into reverse gear and leaves behind craters in the balance sheet of companies.

Having said this, there are also exceptions – manufacturing companies which believe in taking the bull by the horns. Consider the Ahmedabad-based Cera Sanitaryware Limited which stands out in this regard. It has fought recessionary trends for the past three years and successfully retained its status as the third biggest player in the Indian market for sanitaryware.

With a meticulously chalked-out strategy of expansion and diversification along with a strong customer focus, the company has not only successfully weathered inclement economic conditions but has surprised industry watchers by recording a consistent growth in excess of 25 per cent, thus successfully retaining its status as a total bathroom solutions provider.

CERA, a product brand in its own right, has now evolved into a financial brand too with its consistent record of higher earnings, rising profit after tax and consistently higher operating margins. A virtually debt-free company, it is an enterprise with sound fundamentals creating value for its investors. CERA, has been posting continuously higher earnings and profit after tax, in relation and with a high operating margin, it is an outstanding performer to the Indian sanitaryware industry.

The proof of the pudding lies in the eating. For fiscal 2010-11, CERA’s operating margin was Rs 50.31 crore, which as a percentage of total income was 20.71 per cent as against 19.7 per cent in the previous fiscal. The return on net worth during this period rose to 24.7 per cent from the previous level of 16.5 per cent. The earning per share (EPS), which is an important indicator of profitability of a company, has increased nearly 28 per cent on increased capital after the recent bonus issue, as against 16.7 per cent some years ago. Thus the increased operating margin (EBITDA) has paved the way for revenue growth and higher earnings per share.

CERA’s robust performance in a not so conducive market environment is succinctly reflected in the second quarter results of the current fiscal. For the period July-September 2011, CERA earned a net sales income of Rs. 73.29 crore, a 29 per cent increase over Rs 56.86 crore achieved during July-September 2010. The net profit after tax has risen to Rs. 7.65 crore from Rs. 6.09 crore recorded during July-September 2010, reflecting an increase of 20.04 %.

The upshot of all this is that the Rs. 325+ crore CERA, as envisaged for the year ending 31.03.2012, is on the threshold of becoming a Rs. 500-crore company in the next two years, taking in its stride intense competition from other Indian players and foreign brands which are aggressively trying to secure a footprint in the Indian market comprising the rising aspirational upper middle-class with high disposable incomes whose lifestyle perceptions are changing dramatically.

The excellent performance has encouraged the CERA management to expand its manufacturing capacity for sanitaryware at its existing plants at Kadi in Mehsana, Gujarat and also to enter into faucetware manufacturing by setting up a new plant, also at Kadi, of 75,0000 pieces annually. The sanitaryware capacity has been expanded to 2.7 million pieces a year from the current level of two million pieces.

The entire capital expenditure on expansion and diversification has been fun¬ded largely though internal accruals and term loans from the banks. The company believes that with its wide distribution network, ensuring a pan-India presence, and its commitment to deliver quality products, it can garner a fairly large share of the faucetware market, estimated at over Rs. 3,500 crore.

CERA enjoys a good track record of statutory compliance with various regulatory authorities in regard to all payments of taxes, excise duty, import duty, value-added tax, demonstrating high standards of good corporate governance. These are essential ingredients in an increasingly professionalised corporate environment.

CERA Unveils New Logo

The brand new company logo signals a quantum leap in Cera’s future plans and prospects Cera unveiled its new logo at the recent Acetech Exhibition in Mumbai in December 2011. This effectively transformed its corporate identity in one stroke. The new logo, unveiled by renowned architect Hafeez Contractor, is designed to project Cera as a modern brand that continues its tradition of creating innovative products for modern-day needs.

The new logo retains the popular blue colour, but adopts a new, modern typeface to reflect confidence and a sense of purpose. Cera believes that the new logo will connect easily with its customers, business associates and influencers. Changes are afoot on the product front as well, with an array of new designs in sanitaryware and four new ranges in the faucets segment. Several more design additions are in the planning stage. The company is also expanding its display centres.

In addition to capturing the sanitaryware market, the company has a long-term goal of becoming a complete home solutions provider. The recent move to invest in a modern faucets manufacturing plant was a big step towards fulfilling this vision; the commercial production commenced in March 2011. The company has also increased production capacity at its sanitaryware plant in Gujarat.

“Cera has expanded into new markets, created new businesses and has come up with new capabilities that have made it a versatile brand. What started off three decades ago just as a sanitaryware company, has now become a total bathroom solutions provider. Our new logo reflects this multi-faceted versatility of the brand,” said Vidush Somany, Executive Director, Cera India.

About Cera Sanitaryware

Launched in 1980, Cera is a pioneer in the sanitaryware segment in India. The first sanitaryware company to use natural gas, Cera has been on the forefront of launching a versatile colour range and introducing the bath suite concept. It was also launched innovative designs and water-saving products. The twin-flush model launched in India by Cera for the first time, reduces considerably the water needs of households. WCs designed to flush in just four litres of water is another notable innovation by Cera. The company has been steadfastly moving towards its mission of becoming a total bathroom solution company.

In 2010, Cera took one more step towards its goal, commissioning its state-of-the-art faucets facility where the focus will only be on new designs and innovation. Equipped with the latest equipment like fully automatic core shooter, instant induction furnace, channel type furnace with gravity die-casting machine and high-tech equipment for endurance testing, high pressure testing, plating thickness testing, CNC moulding machines, automatic polishers and machining equipment faucets, the facility ensures delivery of quality and consistency of its products.

Confirming to its tradition of being at the forefront of innovation, in a nationwide consumer survey among 30,000 people conducted by Nielsen, Cera’s Snow White has been voted Product of the Year in the sanitaryware category for 2011. Based in Kadi, Gujarat, Cera Sanitaryware Ltd. uses international technology, which has ensured Cera’s superiority over others in quality. Established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical upgradations and modernizations to expand to 30,000 MTPA.

To achieve growth in the rapidly changing retail market in the country, Cera has launched its one-of-a-kind Cera Style Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin, Hyderabad and Mumbai. With the opening of the Cera Style Studios, discerning consumers, architects and interior designers can have a full view of Cera’s premium ranges of WCs, wash basins, shower panels, shower cubicles, bathtubs, shower temples, whirlpools, CP fittings, etc. Cera Style Studios will complement the company’s existing network of 600 dealers and 5,000 retailers. Several bathrooms are displayed live so that the customers can get a feel of Cera’s vast range of products. To increase penetration, along with Style Studios, Cera has launched several Cera Style Galleries across the country which are exclusive Cera retail centres.

Having exhibited a growth rate of more than 25% for the last three years, Cera Sanitaryware Ltd. today is the fastest growing sanitaryware company in India. For its contribution towards industrial growth, Cera's ED, Mr. Vidush Somany, received "The Nirman Ratna Award" in September 2010.

Features of Cyber

• Hands-Free Automatic Flush
• Manual Override Flush
• Temperature Adjustable Heated Seat (adjustable between 30 and 40 degree celsius)
• Temperature Adjustable Water (with 1 + 4 presets)
• Adjustable Warm Air Dryer (with 1 + 4 presets)
• Two Cleansing Modes (posterior and feminine wash) with Self-Cleaning Cera­mic Disc Nozzle
• Adjustable Spray with Precision Positioning and Oscillation
• Swirl Siphon Jet Flushing System
• LED Night Lamp

Cera Faucets

Inspired by the beauty of geometric shapes, Cera has developed a versatile range of faucets for homes. Iconic designs in stunning straight lines, gentle curves, elegant edges and smart shapes integrate style with functionality that truly complements and reflects your style.

Modern, user-friendly, aqua dynamic design, all designs are the latest, unique, durable, user-friendly and easy to maintain. The designs consist of single levers, quarter turns and half turns which use the best raw material compositions and are capable of sustained performance over a long period of time.

Strict quality norms in the basic raw material compositions like copper and zinc are conducted so that uniformity is maintained. The wall thicknesses of the faucets are 3 mm which conforms to uniformity and strength of the products from leakage, etc. The use of core shooter for inside mould ensures the inner smoothness of our faucets which further results in better water flow. All the finished products randomly undergo endurance and surface finish tests. Each product undergoes an air leak test thereby providing a product that is assured of Cera quality.

Ruby Series

Ruby series is futuristic in design with technology that makes it modern and gentle in operation. The futuristic design ensures styling that coordinates with a wide variety of homes, bathrooms and kitchens. The chromium plating gives the Ruby series an impeccable finish and everlasting shine that complements the décor of any bathroom. The range consists of a number of faucets that can decorate a bathroom, kitchen and other wash areas.

The range offers single lever basin mixers, wall-mounted basin mixers, single lever concealed diverters, hand showers and head showers with accessories such as angle cock, bath tub spout, etc.

Cera Wellness

The Cera range of wellness products include steam shower rooms, shower rooms, shower cubicles, shower partitions, whirlpool bathtubs, normal bath tubs and shower panels. Bathtubs are made from high quality acrylic with ceramic light finish which is environment-friendly and light-weight. Water inlets and outlets are designed to ensure complete water drainage after use. A stainless steel frame with adjustable height ensures levelling on any floor. Safety protections like fire retardant acrylic material, overflow, auto shut down and automatic malfunction deduction ensure trouble-free performance.

Shower steam rooms and shower rooms are made from high quality acrylic with ceramic light finish, which is environment-friendly and lightweight. Colour tempered glass with modern looks and aluminum alloy profiles that are light weight, but strong, make these products strong and easy to install. Added to these are anti-slip flooring with foldable seats, water inlets and outlets that are designed to ensure complete water drainage.

Chelsa Steam Shower Room

• Shower room with steam generator and ventilator
• Hand shower and rain shower
• Six water jets for seated back massage
• Chromotherapy
• Hot & cold mixer and diverter
• Shampoo holder and towel rack
• Steam cleaning function
• FM Radio
• Multi functional electronic panel
• 100% drainable shower tray
• Super smooth door
• Wooden panel body at the back and wooden stools
• Free standing shower room with glass on three sides

Cera Kitchen Sinks

Cera kitchen sinks are manufactured and designed to complement today’s modern kitchens contemporary kitchens are smartly planned enabling optimum utilization of space. Cera presents a wide range of sinks with an extensive choice of shapes and sizes, creating a personalized kitchen. The array of special accessories such as cutting boards, rinsing baskets, dish holders, bottom grids, wire racks and knives assist in planning a kitchen that reflects personal style. Cera kitchen sinks are made from 304 grade stainless steel which makes them corrosion-resistant. They are available in both gloss and matt finish and in different shapes and sizes. They come with undercoating for noise reduction.

Personally Speaking
The Persona Behind The Corporate

Vidush Somany, Executive Director of Cera, shares his corporate strategy with Business Barons

Age: 30
Favourite Mantra: Expansion Drives Growth.
Favourite Stop Sign: Grow, but remain within your areas of strength.
Growth will happen in: Related aspects of sanitaryware that dovetail with growth objectives but will not happen in areas where volumes will grow, but margins either won’t or will post low growth – for example, tiles.
Academics: Business Administration.
Alma Mater: Franklin & Marshall College, USA; St. Xavier’s Collegiate School, Kolkata.
Preferred state for manufacturing operations: Gujarat. Largely, it is the quality of labour, the businesslike attitude. We hardly have any problems with attrition.
Expansion plans: Some just completed, some being executed.
Cera’s contribution to the Indian sanitaryware industry: We introduced the ‘bath suite’ concept.
Apart from work, favourite relaxation: Music.
Personal Indulgence: Western Classical – vocal. Yoga, squash, played tennis at state level in school, gym.
Favourite Music Artiste: Cliff Richard
Holiday Destination: International: Maldives, Australia
Holiday Destination: Indian: Kerala
Preferred Dish: Masala Dosa, with all exotic variants
Favourite Car: BMW.
Favourite Festival: Diwali
Dream Activity: Fly a plane
Current Muse: Snow White, another ‘dazzler’ from Cera.
What’s the USP: It stands out amongst pro­ducts in its category with unique whiteness.
Cera’s Brand Ambassador: Bollywood actress Dia Mirza.
What makes her ideal: Flawless image that fits with the brand.
Magic Mantra: Keep it simple.

PROFILE: Vidush Somany

Management Guru Creates Value

Thirty-year-old Vidush Somany is guiding Cera’s future.

Interview: VIDUSH SOMANY, EXECUTIVE DIRECTOR, CERA SANITARYWARE Ltd.

Vidush Somany is the Executive Director, a member of the Shareholders/Investors Grievance Committee and a member of the Share Transfer Committee at Cera Sanitaryware Ltd. At the young age of 30, he has taken over from the growth points that his father had taken the company to and moved ahead to accomplishing goals – even in a scenario where industry performance wasn’t “too hot”. Somany has ensured Cera charts growth year on year. With a win-win strategy of boosting production in the high to mid-end market segment and outsourcing from global manufacturers in the high-end segment – besides outsourcing the low price range with domestic manufacturers – he has been able to post growth in both topline as well as bottomline.

Cera is Vidush Somany’s first work assignment. He took over the reigns at Cera in 2004 immediately after his graduation in business administration from Franklin & Marshall College, USA, and an alumni of St. Xavier’s Collegiate School Kolkata. He perfectly complements the vision of his father, Vikram Somany, who set up the sanitaryware manufacturing facility of Cera and made it one of the most successful bathroom solutions company over the years.

Following in the footsteps of his father Vidush has ensured consistent growth and is now steering Cera to be the country’s largest and most successful home solutions brand. Under his leadership, and with the guidance of his father, Cera has charted an aggressive growth plan to achieve a turnover of Rs.500 crore over the next two years. He has been honoured by Gujarat Institute of Civil Engineers and Architects and AIM with the Nirman Ratna award at a function held in Ahmedabad, towards his and Cera’s contribution to the field of construction.

Interview: VIDUSH SOMANY, EXECUTIVE DIRECTOR, CERA SANITARYWARE Ltd.

Leading Growth

Cera Sanitaryware Ltd, was laun­ched in 1980 and is a pioneer in the sanitaryware segment in India.Vidush Somany, the executive director of Cera, took over the reins in 2004 following his graduation in business administration from Franklin & Marshall College, USA. He not only ensured consistent growth, but is also steering Cera towards being the country's largest and most successful home solutions brand. His goals for Cera include an aggressive growth plan to achieve a turnover of Rs. 500 crore from the current Rs. 300 crore-plus. Kamlesh Pandya, in an interview with Somany, discusses Cera’s aggressive growth plans. Excerpts:

Business Barons: How does it feel when people refer to you as one of the youngest business leaders in your industry?

Vidush Somany: I feel humbled by the accolades. Business leadership is all about teamwork, and I would say it is the success of ‘Team Cera'.

BB: Tell us something about the Indian sanitaryware market.

Somany: The size of the Indian market for sanitaryware is estimated to be around Rs. 15-18 billion. This is divided more or less equally between the organized and unorganized sectors.

BB: Where does Cera fit in?

Somany: Cera is the third largest in the organized sector, and has enjoyed a consistent marketshare of over 21 per cent over the past few years. However, the USP as we see is; ‘Cera’ being the largest single manufacturing plant in India for sanitaryware. After the capacity expansion to 2.7 million pcs p.a., ‘Cera’ is all set to become largest manufacturing set up of sanitaryware in Asia.

BB: What would you say are the growth triggers for the Indian market?

Somany: As regards the Indian sanitaryware industry, customers in both residential and commercial usage are exposed to western / developed countries and so they demand a certain quality standard – but at a reasonable price point. These days, many people are ‘obsessed’ – they want the bathroom to be done very tastefully, in a scenario where cost becomes subordinate to taste and preferences. In this sort of market dynamics, the growth in the real estate industry and the changing profile of the Indian consumer make it a very exciting time for sanitaryware as also the faucetware industry.

BB: How is the paradigm changing when it comes to bathrooms?

Somany: This has something that has begun in the higher-end, premium segment, but the thought process is felt even in the mid-priced segment: the concept of what the bathroom is, and what it represents, has grown tremendously over the past few years. Bathrooms have gradually moved from being purely functional spaces to becoming aesthetic and luxurious. Today a bathroom is an extended portion of the bedroom with just a glass wall in between. Therefore, sanitaryware and faucetware products must reflect modern trends, which range from vanity to Victorian and even straight line designs.

BB: Tell us something about the replacement market in sanitaryware.

Somany: In terms of the replacement market, the potential is huge with good margins. However, it calls for different strategy. We are working hard to capture this segment as well.

BB: Why is that so?

Somany: We may like to take up this business in a different way and in totality; designing, selecting the right sanitaryware; faucets and wellness products; fixing and installing. This essentially calls for support service staff including good plumber and masonry workers with consistency. This is what we call is ‘At Drawing Board stage’. Once we are able to freeze our strategies, will roll out suitable product & service combination appropriately at opportune time.

BB: Give us a brief background on the company.

Somany: Cera Sanitaryware Ltd, was launched in 1980 and is a pioneer in the sanitaryware segment in India. Cera has been in the forefront of being responsive to market trends: we launched a versatile colour range as also introduced the ‘bath suite’ concept. We are the first sanitaryware company to use natural gas as also wind turbines to power our manufacturing process which shows our commitment being environment-friendly.

Our corporate office is in Ahmedabad and our manufacturing set-up is based in Kadi, Gujarat. Established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical upgradations and modernisation to expand to 30,000 MTPA. The technology is from Germany, Italy, the UK and Australia, but these are adapted to suit Indian conditions. This has helped boost our offerings in the Indian market. These international technologies are proven across the world. At the same time, they are easily adaptable to suit Indian conditions.

BB: Competition in this sector is tough. How does Cera stay ahead? What is its USP?

Somany: Cera's depth of distribution and brand equity are so strong that the company has been growing at a phenomenal rate in the past few years. We are one of the few companies that offer a gamut of bathroom products – from sanitaryware, faucets, mirrors, tubs, and jacuzzis to bathroom furniture and accessories.

BB: Not everything that sells under the Cera brand is manufactured in your manufacturing facility?

Somany: Yes, that is correct, but outsourcing is restricted to a small category of premium, high-end products. Most of the offerings under the Cera brand comprise our own manufactured goods, using Indian raw materials with European technology. We also outsource premium sanitaryware from China. This is done using superior China clay as raw material, and in this, we are able to offer a price advantage to end users.

BB: What are some of the important tie-ups you have at present?

Somany: We have a good tie-up with Chinese suppliers. This is for premium sanitaryware. We are at fairly advanced stage of negotiations for sourcing premium faucetware. All these products are manufactured under strict quality standards set by us and carry the Cera brand name.

BB: Tell us something about your role in the company’s growth story.

Somany: As executive director, Cera, I took over the reins in 2004 immediately after graduation in business administration from Franklin & Marshall College, USA. My handling of the company has ensured consistent growth and is now steering Cera towards becoming the country's largest and most successful home solutions brand. Under my leadership, Cera has charted an aggressive growth plan to achieve a turnover of Rs. 500 crore in the next two fiscals.

BB: Could you share your growth plans?

Somany: Cera will increase its in-house manufacturing capacity in sanitaryware from 2 million pcs per annum to 2.7 million pieces per annum. It will result in making us the largest plant in a single location. So, effectively, servicing clients from one location will result in better absorption of overheads and will give us a cost advantage vis-a-vis our competition. Our marketshare is bound to rise. We are aiming to achieve and stabilize at over 30-32 per cent of marketshare across a timeframe of the next 3 to 5 years.

BB: Cera is moving from selling just sanitaryware to the luxury segment?

Somany: We have been selling wellness products for a very long time. This is not something new – we have been outsourcing these products from China and selling under our brand. The response to these products has been much, much better than what was expected. We are doing exceedingly well in this segment, and the market is growing at a faster pace than conventional sanitaryware.

BB: In the Indian market, how important is aesthetics, when it comes to sanitaryware?

Somany: Yes, aesthetics is an aspect which has gained importance over the past few years.

BB: How would you define aesthetics?

Somany: It has to be about design and look, with added comfort as regards functionality while also providing value for money. This is more for home markets, though commercial users do not lag far behind – if cost is not a major constraint.

BB: How price-conscious are Indian customers?

Somany: Price is a one of the major considerations in the Indian context, and it definitely plays an important role in a customer’s decision. But we have seen a change in the trend – customer preference is gradually shifting, price is not always important, especially where better looking and higher quality products are concerned.

BB: From pricing we move on to the Cera distribution network: what is your take on this?

Somany: We have an established brand and a settled distribution channel of over 6,000 retailer dealers. From the company’s perspective, a responsible attitude towards end users necessarily means that the attitude has to also apply to our dealers. This is something that our customers appreciate, and I feel that our distributor network will help us capture a larger share of the market.

BB: In which parts of the country are Cera products available, and which parts of India are your growth areas?

Somany: We have a pan-India presence, so in theory you can get Cera products across India. In terms of growth plans, this includes having a strong foothold in the north-east and central India. Besides, we are eyeing an increase in our share in southern states like Andhra, Tamil Nadu and Karnataka.

BB: How about exports?

Somany: Cera exports largely to the Gulf and to African countries. Cera’s exports do not exceed 5 per cent of overall sales.

BB: Is faucetware your new initiative?

Somany: Yes, we have recently added faucetware to our manufacturing range. The current manufacturing capacity is 2,500 pcs per day. We have ambitious plan to raise capacity to 7,500-10,000 pcs per day across a time span of three to five years. The market size of faucetware is more than double that of the size of sanitaryware.

BB: How did this new initiative come about?

Somany: Faucetware has synergies with Cera’s current product range, which largely goes into the bathroom. We have been servicing the market with quality outsourced product for the last few years under our brand name – effectively, we test-marketed the business. The market is fairly large and can be estimated as being around Rs. 35 billion. We entered faucetware manufacturing with our own facility at Kadi in north Gujarat. Our current capacity and marketshare is only a fraction of this large-sized market. This leaves good scope for expanding capacity, given the credibility that the brand enjoys.

BB: What are the latest trends in bathrooms?

Somany: Usage of products which are whiter than the whitest is in, and Cera scores on this count with its latest product Snow White which has been awarded ‘Product of the Year’ for innovation in the sanitaryware category for 2011 by Nielson.

BB: How are the Cera Bath Studios doing?

Somany: Very well. Cera is a pioneer in this regard, and the response is extremely good. The company has been opening its own Cera Bath Studios across the country, but this is not direct selling to the consumer. The ‘Cera Bath Studio’ is only a display centre of all the products the company has to offer. This allows end-users as well as architects to have a close look at the entire product range. Some the studios offer facility to actually experience the product – touch and feel. Eventually, if the customer decides, he will have to go to the dealers to buy the products of his choice. The Cera Bath Studio inspires confidence in the company’s products, especially with committed ‘after-sales service’.

BB: What is your message to shareholders?

Somany: I would like to remind Cera shareholders that at the macro level the sanitation condition in India is very poor. Our line of business offers ample scope to grow, so the outlook is bright.

BB: What would you say defines your attitude towards shareholders?

Somany: At Cera, we respect our shareholders. We are working hard to create and sustain value for our stakeholders. We believe that the investing community has appreciated our efforts; this is reflected in our share price.

BB: Has the entry of international brands into the Indian market affected local brands?

Somany: Several international companies have seriously begun eyeing the Indian market and setting up their manufacturing bases here. However, most of them cater to the high-end segment and do not manufacture the entire range of products – the Indian WC being an important one. From the perspective of an Indian manufacturer, Cera manufactures both Indian and western WCs, has a wider distributorship. You will find a Cera product in the remotest area of India, whereas you won’t see international brands even in all metro areas. Nowadays all international companies in India manufacture their products either locally or in China. This means that the quality doesn't really differ and local Indian brands are able to compete in terms of both quality and products.

BB: Where do you see Cera in the next five years?

Somany: The sanitaryware industry is generally growing at average rate of 14-16 per cent annually. The trend for lifestyle-plus living is quite upbeat, given the rise in disposable incomes as also higher levels of education. This scenario is expected to sustain for a long period. Despite quite a few foreign brands entering the Indian market, brand Cera enjoys its own niche in the market, with customer loyalty demonstrated through recall values. Cera is expecting a larger share from the market on the back of the construction and housing boom. We are expanding capacities not only in sanitaryware but are also committed to do so in faucetware. Cera aspires to cross the landmark of Rs 500 crore by the end of accounting year 2013-14.

What adds to the scenario is that the entire capex funding has been planned largely with internal accruals generated through own operations and the balance with support from existing bankers. This financial structure would lay solid foundations for a much stronger EPS in time to come.