H & R Johnson (India) Limited, has signed a 50:50 JV pact with Silica Ceramica Pvt. Ltd., to set up a tile manufacturing facility at Eluru in Andhra Pradesh.

Under the arrangement, Silica Ceramica will manufacture vitrified tiles as per HRJ’s state-of-the-art technology and quality standards while HRJ will market the finished products through its wide distribution network.

H. & R. Johnson (India) Limited is India's No. 1 tile company offering a wide range of wall and floor tile products across various segments viz. wall, floor, vitrified, exterior applications and industrial applications.

The company plans to pump Rs 50 crore towards this JV project. The plant has a manufacturing capacity of 7,500 square meter per day and the commercial production is anticipated to commence by January, 2009.

According to market experts, the latest strategic relationship is going to be advantageous for both the companies because Silica Ceramica will benefit in terms of technological advancement, international standards and quality control while HRJ will focus on utilizing its vast network and brand equity to raise sales in vitrified tiles category.

H&R Johnson has ambitious aim to touch Rs 3000 crore sales turnover within duration of five years. Its revenue in the last fiscal totaled Rs 1,030 crore.