RAK Ceramics to invest Rs. 500 crore to raise capacity through brownfield expansion.

The Middle East-based Ras Al Khaimah (RAK) Ceramics has plans to invest up to Rs. 500 crore in the country over the next five years, which will include capacity expansion through brownfield expansion, a senior company official has said.

While the company is scouting for a joint venture partner in Gujarat, it is also looking for a brownfield project somewhere in the central region.

'We are looking at investing up to Rs. 500 crore here over the next five years which will include capacity expansion through a brownfield project in the central India,' RAK Ceramics India chief executive Santosh Nema told.

On how he will source funds for this investment, he said it could be raised mostly from internal accruals and with some assistance from the parent company. Also, a portion of the funds could be chipped in by a joint venture partner in Gujarat.

With this capacity expansion, the company aims to be a leading player in the domestic sanitaryware market. At present, sanitary ware production contributes 10 per cent of its total revenue.

RAK also plans to increase its annual turnover to Rs. 2,000 crore during the same period.

'We are aiming at increasing our annual turnover to Rs. 2,000 crore from here, up from Rs. 800 crore over the next five years,' Nema said.

ET