RAK Ceramics, a global hi-tech manufacturer of lifestyle ceramics solutions, has acquired the remaining 8% minority share of its subsidiary RAK India and therefore now fully owns its Indian operations.
RAK Ceramics (profile) set up operations in India in 2006 to capitalize on rising demand, growing construction projects, high urbanization rates and government direction towards sanitation. RAK Ceramics has three production lines in India, with a current capacity of eight million square meters of tiles.
The announcement follows RAK Ceramic’s recent acquisition of 100% of its Iranian operations, a move that confirms the company’s long-term view to strengthen operations in core markets of the UAE, Bangladesh and India.
In 2014, RAK India operations contributed 16% of total tiles sales volume and 13% of sanitaryware. Building on these results, RAK Ceramics announced recent capacity expansions in India by 52% for sanitaryware to reach 1.1 million pieces by 2016.
Abdallah Massaad, the company’s CEO, said: “India is a strong market with great potential for us. It is among the fastest growing markets in the world and has witnessed a dramatically renewed optimism for its economic prospects with a rising demand for building materials and construction projects; a very promising sign for RAK Ceramics. The recent acquisition of the remaining 8% of our Indian operation reaffirms our commitment to strengthening core business interests in line with our Value Creation Plan. Our Value Creation Plan was initiated in 2014 and is designed to unlock hidden value and increases market share in our core markets.”
RAK Ceramics aspires to be a top industry player in India, which is the third largest tiles market in the world, and according to Technavio’s report, “Ceramic Tiles Market in India 2015-2019“, demand for tiles is expected to grow at CAGR of 8.7% for 2014-2019 from an annual consumption of 756 million square meters of tiles.
RAK India is one of 15 plants owned and operated by the company globally; the remaining include one in Bangladesh, one in Iran and 12 in the UAE.
About RAK Ceramics
RAK Ceramics is one of the largest ceramics manufacturers in the world, with an annual production capacity of 110 million square meters of tiles, five million pieces of sanitaryware, and 24 million pieces of porcelain tableware. The Ras Al Khaimah-based public-listed company was established in 1989 by H.H. Sheikh Saud Bin Saqr Al Qasimi, Ruler of Ras Al Khaimah and UAE’s Supreme Council Member. Now under the vision and leadership of Sheikh Khaled Bin Saud Al Qasimi, Chairman of RAK Ceramics, the Ras Al Khaimah-based company has enjoyed rapid growth becoming a powerhouse in just 20 years.