RAK Ceramics, one of world’s largest makers of ceramic tiles and sanitary ware, plans to increase its 25% sanitary ware production in Bangladesh by March this year.
The company listed with the Dhaka Stock Exchange and Chittagong Stock Exchange is operating in Bangladesh with a local partner. Some US$50m earned from selling its Sudan business, which is in the process, and its stake in the pharmaceutical company RAK Pharma in Bangladesh, which was recently sold, will be invested in the UAE, India and Bangladesh, its chief executive told a UAE-based daily last week.
During the last month, the firm had sold its Pharmaceutical unit in Bangladesh to Gulf Pharmaceuticals Industries Julphar PJSC with a deal of $9.5m.
“[This year] revenue in UAE will be better, in Bangladesh will be better and in India will be better,” said the firm’s chief executive Abdallah Massaad.
The current production capacity for sanitary ware in Bangladesh is 1.2m pieces and will rise by 25% to 1.5m pieces from the first quarter of this year.
Current production capacity for tiles in Bangladesh is 8m sq metres and it will increase by 21.2% from the third quarter of this year. Massad said, “We are working into several initiatives to enhance the value of the company by concentrating, focusing and adding more capacity in the performing countries and exiting non core [assets].”
“We have some real estate assets, hospitality business, construction companies and some investments like pharma, which we are being sold.”
The Ras Al Khaimah-based firm said profit fell 15% in the third quarter because of hyperinflation accounting in Sudan and Iran.
The sale of the Sudan business, which will be concluded by the end of March, will help the company avoid operational issues regarding the import of raw materials and spares, and prevent further financial losses stemming from hyperinflation and foreign-exchange losses.