RAK Ceramics, a global hi-tech manufacturer of lifestyle ceramics solutions based in the UAE, has, in a strategic move, taken over 100 per cent of its Indian operations by acquiring the remaining eight per cent minority stake in its Indian subsidiary.

RAK Ceramics has three production lines in India, with a current capacity of eight million sq m of tiles.

The announcement follows RAK Ceramics’ recent acquisition of 100 per cent 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.

RAK Ceramics said it had set up operations in India in 2006 to capitalise on rising demand, growing construction projects, high urbanisation rates and government direction towards sanitisation.

In 2014, RAK India operations contributed 16 per cent of total tiles sales volume and 13 per cent of sanitary ware. Building on these results, RAK Ceramics announced recent capacity expansions in India by 52 per cent for sanitary ware to reach 1.1 million pieces by next year.

Commenting on the move, CEO Abdallah Massaad 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 acquisition of the remaining eight per cent 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,” he added.

RAK Ceramics said it aspires to be a top industry player in India, which is the third largest tiles market in the world.

According to Technavio's report, “Ceramic Tiles Market in India 2015-2019”, demand for tiles is expected to grow at a CAGR (compound annual growth rate) of 8.7 per cent for 2014–2019 from an annual consumption of 756 million sq m of tiles.

RAK India is one of 15 plants owned and operated by RAK Ceramics globally; the remaining includes 12 in the UAE and one each in Bangladesh and Iran.-TradeArabia News Service