Ras Al Khaimah-based ceramic tiles manufacturer, RAK Ceramics, plans to invest Rs 500 crore to set up a new manufacturing facility in Gujarat and expects to commission it by mid-2012, a top company official has said.
"We will be setting up an unit in Gujarat with a production capacity of 70,000 sq metre tiles per day. The investment will be over Rs 500 crore and the plant will be commissioned by mid-2012," RAK Ceramics India President Bhupendra Vyas told PTI here.
"The initial capacity will be 30,000 sq metre tiles per day. We will scale-up the capacity to 70,000 sq metres tiles per day in the next three-years," he said.
The company plans to come out with an initial public offer (IPO) next year to fund the expansion plan.
"We plan to come out with an IPO early next year. The proceeds of the issue will be used for our expansion plans," he said, without revealing further details.
The Gujarat facility will be the company's second unit in India after the vitrified tiles plant in Andhra Pradesh, which has a production capacity of 30,000 sq metres of tiles per day.
The company exports its tiles to countries such as Taiwan, Korea, Israel, the UAE, Sri Lanka and Australia.
The company plans to increase its distribution network in the country in the view of the growth in the real estate sector, Vyas said.
"With the growth in the real estate sector, we plan to increase our distribution network to garner more sales. People these days have become more style conscious," Vyas said.
The company targets a Rs 600 crore revenue in 2011 (January-December) from the Rs 500 crore last year.
The company has products in over 200 designs available in the country and plans to introduce new concepts in the series in future. Currently, it has 700 dealers and 2,000 point of sales.
