By: Rami Sameh
Abu Dhabi - Mubasher: The CEO of Ras Al Khaimah Ceramics said that his company is planning an acquisition in Western India during the second quarter of 2017.
Abdullah Massaad added in a phone interview with Mubasher on Wednesday that RAK Ceramics aims at expanding its operations in the promising Indian market, where they are seeking acquisitions.
One of these acquisition deals is expected to be announced in the upcoming months before the end of H1-17, he revealed, refusing to specify the value of the anticipated deal.
In October 2015, RAK Ceramics acquired the remaining 8% minority stake in its subsidiary in India, to completely own it by 100%.
Massaad stressed that India represents a huge market that will create a bigger demand on the company’s products, especially since it now accounts for more than 8% of the production, which totals 110 million square meter per year.
RAK Ceramics began operating in India in 2006, where it currently has three production lines with an annual production capacity of eight million square meters.
When asked about plans for expansion in other markets, he said they are continuously considering all available opportunities, especially in major markets such as the UAE, India, and Bangladesh.
The CEO indicated that his company invested around $215 million in expansions and acquisition last year, he also expects more new investments this year, without specifying its volume.
The decline in profits in 2016 is mainly attributed to the increase in provisions to AED 185 million ($50.37 million), while the drop in sales by 41% in Saudi Arabia was a result of the decrease in public spending, and in India sales also fell 25% due to the banknotes crisis, Massaad explained.
The CEO assured that RAK Ceramics will continue its policy of exiting other activities to focus solely on ceramic production, as per the company’s three-year plan that was announced in mid-2015.
Massaad also revealed production has slowly began in the company’s facility in Iran, with production only directed to the local market.
Translated by: Moslem Ali
