RAK Ceramics to build third plant to double capacity in India

Plans to set up a greenfield plant in the western Indian state of Gujarat are at an advanced stage, says chief

Selling and distribution expenses increased 20.4 per cent to Dh110.9m.Pawan Singh / The National

RAK Ceramics, among the world's top five producers of ceramic tiles, plans to build a third plant in India to almost double its production capacity there next year, according to the company's chief executive.

“Our target in India is to have 20 million square metres of capacity by 2018. We are bullish on growing our capacity and increasing our market share in a fast-growing economy,” said the chief executive Abdallah Massad.

Plans to set up a greenfield plant in the western Indian state of Gujarat are at an advanced stage, Mr Massad said.

The company's two existing facilities in India have a combined capacity of 11 million square metres of tile.

RAK Ceramics has been pulling out of businesses such as real estate, construction, warehousing and leasing to free up resources for growth in its core business.

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The Abu Dhabi-listed firm makes 110 million square metres of tile annually as well as 5 million pieces of sanitary ware. It has facilities in the UAE, India, Bangladesh and Iran.

It reported revenue of Dh2.11 billion  for the first nine months of 2017, a fall of 1 per cent.

A slowdown in construction in the region had not affected the company, Mr Massad said, noting RAK exports about 70 per cent of its UAE output to 150 countries.

Revenues at RAK Ceramics Bangladesh have been rising at a rate of 35 per cent this year, he said, adding that RAK Ceramics planned to expand in line with market growth there.

A plant in China that was shut down two years ago will be sold once a buyer is found, Mr Massad said, without elaborating.