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RAK Ceramics eyes expansion in Saudi Arabia - Interview

RAK Ceramics eyes expansion in Saudi Arabia - Interview
RAK Ceramics currently has no plans to expand in India
RAK Ceramics
RAKCEC
1.94% 1.58 0.03

By: Mahmoud Gamal

Abu Dhabi – Mubasher: Ras Al Khaimah Ceramics (RAK Ceramics), listed on the Abu Dhabi Securities Exchange (ADX), is looking to extend its presence in the Saudi Arabian market, the company’s CEO Abdullah Massaad said.

The company is planning to open new centres in Riyadh and Jeddah in September 2019 to sell and distribute its products in the kingdom, Massaad told Mubasher in a phone call.

RAK Ceramics seeks to obtain licenses from relevant Saudi authorities to establish a plant in the kingdom at a value of AED 300 million ($81.66 million), he highlighted.

This plant will enable the company to cut the cost of production and to supply the growing local market and the main markets in Europe, he noted.

He also revealed that the company is set to open a centre in the UK on 20 August to sell its products across Europe.

This comes as a part of RAK Ceramics’ plan to expand in Europe, the CEO added.

Moreover, he said that the company will focus on cutting operating costs, as well as showcasing its products at exhibitions in India and Bangladesh over the coming period to boost revenue.

RAK Ceramics currently has no plans to expand in India, Massaad pointed out, adding that the listing plans of its subsidiary Rak Ceramics India on the National Stock Exchange (NSE) has not progressed.

The company has started its commercial operations at its plant in Morbi, India in early 2019 to manufacture ‘Mega Slab’ tiles, with current production capacity at 70%.

Earlier this day, RAK Ceramics announced that its net profit for the first half of 2019 dropped by 8.5% year-on-year to AED 110.3 million, while its total revenue fell by 6.8% year-on-year to AED 1.29 billion.

 

Translated by: Mai Ezz El-Din