Global Surfaces Ltd Secures Exclusive Quartz Manufacturing Rights in MENA

On July 11, 2024, Global Surfaces Ltd (GSL) announced in a stock exchange filing that its wholly owned subsidiary, Global Surfaces FZE (GS FZE), had entered into a License Agreement on July 10, 2024, with SQIP, LLC, a Florida-based limited liability company (Licensor), and Veegoo Technology Co. Ltd (Veegoo). The agreement aims to develop, produce, manufacture, and create specific licensed products using highly exclusive patented technologies.

Under this agreement, GSL, through its subsidiary, will manufacture engineered quartz stones designed to mimic the appearance of natural marbles, featuring more authentic colours and innovative patterns. Additionally, the company has secured exclusivity for manufacturing activities in the Middle East and North Africa (MENA) region.

Speaking of this development, the management team of GSL, said, “We are thrilled to announce that Global Surfaces FZE, a wholly-owned subsidiary of Global Surfaces Limited, has successfully entered into a License Agreement with SQIP, LLC, a distinguished Florida-based limited liability company, and Veegoo Technology Co. Ltd, a prominent company incorporated in the People’s Republic of China thereby marking a significant milestone in our strategic achievements. This pivotal agreement grants GS FZE exclusive, non-transferable, and non-sublicensable rights to utilise cutting-edge patented technology and know-how.”

The company’s management further added that these exclusive rights will enable them to develop, produce, manufacture, and create innovative engineered quartz stones that closely replicate natural marble’s luxurious look and feel. Pursuant to the agreement, they have manufacturing exclusivity in the MENA region and right of first refusal in the Indian market, further solidifying their presence and capabilities in these key markets.

In adherence to the specifications outlined in the agreement, the company will leverage state-of-the-art patented technology currently utilised by a select group of industry leaders worldwide. This positions the company among the coveted producers of engineered quartz surfaces renowned for their authentic colours and patterns, echoing the natural beauty of marble. This technological capability enhances the company’s ability to meet the rising global demand for high-quality, natural-looking engineered surfaces, securing a competitive advantage and strengthening its market presence.

According to management, the execution of this agreement is expected to significantly expand the company’s operational scale. Over the next three years, the company aims to deliver approximately 1,00,000 slabs, equivalent to 75 lakh square feet. This initiative also promises to improve overall profit margins, bolstered by the healthy margin profile of these specialised products and the limited competition in this segment.

This strategic agreement underscores the company’s dedication to innovation and excellence. It ensures it remains at the forefront of the industry by offering superior products tailored to its customers’ evolving preferences. The company is confident that this collaborative strategy will drive growth and reinforce its competitive edge in the global marketplace.

On July 11, 2024, the share price of Global Surfaces Ltd opened at ₹226.00, touching the day’s high at ₹238.00, as of 12:49 PM on the NSE.

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