INVESTMENT OPPORTUNITY

CERAMIC SANITARYWARE MANUFACTURING

PROPRIETARY INVESTMENT MEMORANDUM | GUJARAT, INDIA

ACQUIRE A 9+ YEAR INDUSTRY LEADER

₹21.63 Cr Asset Valuation 2.7 Lakh Units Annual Capacity ISO 9001:2008 Certified

Company Overview & Milestones

Established ISO 9001:2008 certified manufacturer of premium ceramic sanitaryware with fully functional facility and 9+ years of operational excellence in the industry.

Core Product Lines

Wall Hung Products (Wash Basin, WC, Sanitary Ware)
Wall Mounted Sanitary Ware
Basin Collection (Wash Basin, Pedestal Wash Basin, One Piece Basin)
Ceramic Sanitary Ware
Custom Designs & Export Quality Products

Company Milestones

Years in Operation

9+ Years (Founded 2015)

Production Capacity

2,70,000 Units/Year

Current Utilization

70% Capacity

Operational Status

24x7 Fully Operational

Certifications: ISO 9001:2008 certified with all necessary government registrations including UDYAM, GST, and IEC for exports. Established as exporter, manufacturer, and supplier of premium ceramic sanitaryware.

Asset Valuation & Structure

Total Asset Valuation

₹21.63 Crores

Complete Business Sale - Land, Building, Plant & Machinery

Asset Breakdown

Asset Category	Value (₹ Cr)	Details
Land	5.11	20,639 Sq.M (Freehold, Mortgaged)
Building	5.44	14,450 Sq.M Production Facility
Plant & Machinery	8.53	All Equipment in Excellent Condition
Stock on Hand	2.55	Raw Material + Finished Goods + Spare Parts
TOTAL ASSETS	21.63	Complete Turnkey Operation

Key Machinery & Equipment

Kiln (75 MTR)

₹5.30 Cr

Dryer (10 MTR)

₹70 Lakhs

Ball Mills (6 Units)

₹85 Lakhs

Patterns (170 Items)

₹32 Lakhs

Note: All machinery in excellent working condition with 9-10 years useful life remaining if well maintained. No repairs or upgrades required.

Financial Performance Analysis

Historical & Current Year Financial Data (₹ in Lakhs)

Revenue & Profitability Trend

Particulars	FY 2023-24	FY 2024-25	FY 2025-26 (Est.)	FY 2025-26 (Sept Actual)
Capacity Utilized	70%	50%	65%	70%
Total Sales	1,675.00	1,235.00	1,532.21	824.51
Total Net Profit	418.00	234.70	275.80	223.61
Depreciation	34.00	29.00	25.00	21.25
Cash Accrued	452.00	263.70	300.80	244.86
Interest Cost	2.27	62.10	57.45	25.85
EBITDA	454.27	325.80	358.25	270.71

Key Financial Highlights

Peak Annual Sales

₹16.75 Cr (FY 23-24)

Peak Net Profit

₹4.18 Cr (FY 23-24)

Current Performance

Strong H1 FY 25-26

Business Model: Company primarily supplies to wholesalers and builders with focus on B2B segment. Unique designs and premium quality command higher margins with significant R&D investment.

Existing Liabilities & Payment Terms

Outstanding Loan

Total Bank Loan Outstanding

₹5.25 Crores

Proposed Transaction Structure

Payment Stage	Percentage	Terms
Initial Payment	25%	Required for deal confirmation
Balance Payment	75%	As per mutually agreed timeline

Legal Framework: Final terms, payment schedule, and warranties to be formalized through legal agreement between parties. All transactions subject to proper documentation and regulatory compliance.

Manufacturing Process & Infrastructure

State-of-the-Art Production Facility

Total Land Area

20,639 Sq.M

Building Area

14,450 Sq.M

Labor Quarters

94 Rooms

Ownership

Freehold Property

Manufacturing Process Excellence

Body Preparation: Raw materials undergo crushing, sieving, and ball mill processing. Slip is filtered through magnetic filters to ensure iron-free, uniform particle size material.
Glazing: Automated or manual glazing using spray booths or dipping tanks ensures consistent finish quality across all products.
Firing: State-of-the-art 75-meter kiln ensures optimal firing conditions for superior product strength and durability.
Quality Inspection: Comprehensive inspection for cracks, dirt, pinholes, and flash testing. Products are palletized and wrapped for safe dispatch.

Complete Equipment Set

75 Meter Kiln (₹5.30 Cr)
10 Meter Dryer (₹70 L)
6 Ball Mills (₹85 L)
650 Benches & Racks
170 Patterns (All Items)
10 Glaze Booths
2 Generators
Complete Support Equipment

Investment Highlights & Strategic Value

Why This Opportunity?

ESTABLISHED BUSINESS

9+ Years Track Record

ISO CERTIFIED

ISO 9001:2008

STRATEGIC LOCATION

Gujarat - Ceramic Hub

24x7 OPERATIONAL

Zero Downtime

Growth Potential

Capacity Expansion: Currently operating at 70% capacity with significant room to scale up to full 2.7 lakh units/year production.
Export Ready: IEC registration in place with established international trade capabilities.
Premium Positioning: Focus on unique designs and quality allows for higher margins versus commodity players.
Established Infrastructure: Complete facility with no additional capex required for immediate operations.
Skilled Workforce: Experienced team in place with specialized knowledge in ceramic manufacturing.
Gujarat Advantage: Located in India's ceramic capital with access to raw materials, skilled labor, and established supply chains.

30% UPSIDE AVAILABLE: Scale production from 70% to 100% capacity utilization

Market Opportunity & Competitive Advantages

Industry Positioning

Gujarat cluster accounts for majority of India's ceramic sanitaryware production. With established infrastructure, skilled workforce availability, and proximity to ports, the region offers significant competitive advantages.

Market Segment

B2B (Wholesalers & Builders)

Product Focus

Premium Quality Sanitaryware

Export Capability

IEC Registered Exporter

Strategic Advantages

Advantage	Description
Prime Location - Gujarat	Ceramic capital of India with access to raw materials and established supply chains
Infrastructure Development	Growing urbanization driving demand for quality sanitaryware products
Export Opportunities	India's sanitaryware exports growing with established trade channels in place
Competitive Edge	Complete manufacturing setup allows better margins versus commodity players
Quality Focus	ISO certification and premium positioning in the market

Stock Inventory

Raw Material Stock

300 Tons (₹9.75 L)

Finished Goods

44,000 Units (₹2.40 Cr)

Store & Spare Parts

₹5.50 Lakhs

Operational Readiness & Machinery Status

Current Operations Status

✓ Fully Operational 24×7 Facility

Continuous production operations with no downtime
Full workforce in place with experienced team
Regular order fulfillment to established customer base
All equipment fully functional and well-maintained
9-10 years useful life remaining on all major machinery
No major repairs or capital expenditure required

Key Equipment Status

Equipment	Quantity	Value (₹ Lakhs)	Status
Kiln (75 MTR)	1	530.00	Fully Operational - Excellent
Dryer (10 MTR)	1	70.00	Fully Operational - Excellent
Ball Mills	6	85.00	Fully Operational - Excellent
Benches & Racks	650	18.00	Well Maintained
Patterns (All Items)	170	32.00	Complete Set Available
Generators	2	17.50	Fully Operational
Glaze Booths	10	15.00	Fully Operational
Other Equipment	Various	85.20	Complete Support Systems
TOTAL P&M VALUE		852.70	Ready for Handover

Immediate Readiness: The facility requires no capital expenditure for immediate operations. All systems are production-ready, allowing new ownership to commence operations from day one.

Transaction Details & Investment Structure

Complete Business Sale

Full asset sale including Land, Building, Plant & Machinery, and Current Stock

What's Included in the Sale

Land & Building (Freehold - 20,639 Sq.M Land + 14,450 Sq.M Building)
Complete Plant & Machinery (₹8.53 Cr)
Raw Material Stock (300 Tons)
Finished Goods Inventory (44,000 Units)
Store & Spare Parts
All Patterns & Molds (170 Items)
Labor Quarters (94 Rooms)
Office Infrastructure
All ISO Certifications & Licenses
Government Registrations (UDYAM, GST, IEC)

Transaction Terms

Initial Payment

25%

Required for deal confirmation

Balance Payment

75%

As per mutually agreed timeline

Available Documentation

Category	Documents Available
Legal Documents	Property title deeds, Partnership deed, ISO certification, GST registration, IEC registration
Financial Records	3-year audited financials, Bank statements, Tax returns, Loan documents
Technical Details	Machinery invoices, Layout drawings, Product catalogue, Maintenance records
Operational Records	Customer orders, Production reports, Quality certifications, Employee records

Due Diligence & Next Steps

Investment Process

STEP 1: INITIAL DISCUSSION

• Review investment memorandum
• Preliminary Q&A session
• Non-binding term sheet discussion
• Site visit scheduling

STEP 2: DUE DILIGENCE

• Physical inspection of facility
• Financial records review
• Legal documentation verification
• Machinery assessment

STEP 3: NEGOTIATION

• Final valuation agreement
• Payment terms finalization
• Transition support details
• Legal agreement drafting

STEP 4: CLOSING

• Execution of sale deed
• Initial payment (25%)
• Asset transfer documentation
• Operational handover

Schedule a Site Visit

Arrange a comprehensive facility tour to assess operations, meet the team, and verify all assets

Key Investment Highlights Summary

Fully Operational: 24x7 production facility with no downtime or repairs needed
Proven Track Record: 9+ years of manufacturing excellence with ISO 9001:2008 certification
Complete Asset Package: ₹21.63 Cr worth of land, building, machinery, and inventory
Growth Potential: 30% capacity upside available (70% to 100% utilization)
Strategic Location: Gujarat - India's ceramic manufacturing hub
Export Ready: IEC registration with established international capabilities
Immediate Handover: Seamless transition with promoter support available

NEXT STEPS: STRATEGIC M&A INQUIRY

We look forward to partnering with you to unlock this investment opportunity.

CA DHIRAJ OSTWAL & Co.

Your Vision, Our Expertise— Seamless M&A Solutions.

Email Contact

dhiraj.ostwal@gmail.com

Direct Phone

70200 45454

Website

www.cadhirajostwal.com

M&A Advisory Office (Pune, Maharashtra, India)

2nd Floor, Shree Krishna, 7, Shirole Lane, opp. Kiosk Koffee, off Fergusson College Road, Shivajinagar, Pune, Maharashtra 411004

**Private & Confidential:** This document contains confidential information and is not an offer for sale.

Ceramic Sanitaryware Manufacturing