Bullish on the high growth of Indian real-estate sector, the United Arab Emirates-based tile and tableware manufacturer Ras Al Khaimah (RAK) Ceramics plans to invest ₹300 crore in the country this year.
RAK’s Chief Operating Officer Santosh Nema said with the new Government indicating that infrastructure development will be a priority area, the entire ecosystem, which includes tile industry, will get a major boost.
The company will set up a new plant in Gujarat and expand the capacity of the existing one at Samalkot, Andhra Pradesh.
Besides, the company also has plans to increase pan-India presence through its retail network.
Commercial production at Samalkot for a sanitaryware line is expected in June this year.
With this, the production capacity will go up to 1.2 million pieces a year from the existing 4 lakh.
“India is a strategically important geography in the overall business plan of the company. In fact, India has the largest sales, besides the UAE. We expect more construction activities this year both in the commercial and residential space,” Nema added.
RAK Ceramics has the largest tile manufacturing plant in Samalkot. It competes with companies such as Nitco and Kajaria.
According to an industry report, the tiles industry in India is pegged at ₹25,000 crore, but largely fragmented.
Despite an overall economic slowdown, the sector grew at 15 per cent annually and drew investments worth ₹5,000 crore in the last five years.