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HMG Stones is preparing to invest around INR 40 crore in FY27 to expand its operations and strengthen its presence in the natural stone segment. The Bengaluru-based company plans to invest in advanced machinery, automation and a new experience centre near Bengaluru airport as it targets revenue of INR 120-150 crore in FY27 after crossing INR 100 crore in FY26. Demand from luxury housing, villas and large-format homes has supported growth in marble consumption over the last two years, while rising logistics costs and import dependence continue to remain key concerns for the industry.
HMG Stones is planning a fresh investment of nearly INR 40 crore in FY27 as the company looks to expand capacity, improve operations and increase its market presence across India. The investment will include around INR 30 crore towards machinery and automation upgrades, while another INR 10 crore will be spent on setting up its fourth experience centre near Bengaluru airport. Advertisement
The company, which operates in the natural stone and marble segment, expects revenue to rise to INR 120-150 crore in FY27 after crossing INR 100 crore in FY26. The planned expansion comes at a time when demand for premium interior materials has remained steady due to continued growth in luxury housing and villa developments across major cities.
Founder and CEO Anand Reddy, in an interaction with ETRealty, said the company continues to receive most of its business from individual homeowners, who contribute nearly 85% of total sales. Builders and developers account for the remaining share. He explained that the company has not aggressively focused on large developer projects because such projects usually involve longer execution timelines and delayed payment cycles compared to individual buyers.
HMG Stones has already invested close to INR 100 crore in its NextGen 333 product line, including infrastructure, imported materials and processing facilities. At present, marble contributes around 70% of the company’s total business, while granite and quartzite contribute nearly 10% each. The remaining share comes from other natural stone products used in residential and commercial spaces.
The company’s marble range starts from nearly INR 300 per sq ft, while granite products begin at around INR 200 per sq ft. Quartzite products are priced from approximately INR 500-600 per sq ft depending on quality, texture and finish. The company said demand for premium marble has improved considerably over the last two years, especially in larger homes and luxury villas where buyers are spending more on interiors and finishing materials.
Reddy noted that after the Covid period, many homebuyers shifted towards spacious homes on the outskirts of cities such as Bengaluru, leading to higher demand for premium flooring and natural stone finishes. He also indicated that developer participation in the marble and stone segment has gradually increased across the industry, although individual homebuyers still remain the dominant customer category.
The company highlighted that dependence on imported raw materials continues to remain a challenge for the natural stone industry because several premium colours and stone varieties are not easily available in India. To avoid supply-related disruptions, HMG Stones currently maintains inventory for nearly 10-12 months. The company added that shipping and logistics costs from western markets have increased sharply over the past few years.
According to the company, transit periods that earlier took around 30 days are now extending to almost 60 days in certain cases. Logistics-related costs have also risen by nearly 15-20%, putting pressure on operational expenses across the sector. Despite the increase in costs, the company said it has not raised product prices so far, though it may eventually need to revise pricing if supply chain disruptions continue for a longer period.
To reduce dependence on a few markets, HMG Stones is also exploring sourcing opportunities from eastern regions. Currently, around 90% of its products are sold within India, while exports contribute close to 10% of the overall business. Karnataka remains the company’s largest market, followed by Tamil Nadu and Kerala. The company is also looking to strengthen its presence in Ahmedabad, Surat and Mumbai during the current financial year.
Along with expansion, the company said sustainability and efficient resource usage remain important focus areas. Rooftop solar installations currently meet around 65-70% of its electricity requirements, while water treatment and recycling systems are being used during manufacturing and processing operations. The company is also focusing on thinner stone-cutting methods to reduce raw material wastage and lower slurry generation.
After completing the Bengaluru airport experience centre, the company is expected to evaluate Hyderabad as the next location for expansion as it looks to increase its footprint in southern and western markets.
Source PTI
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