RAK Ceramics eyes growth in region
By Robert Ditcham
Dubai: RAK Ceramics (RAKCEC) is confident it can beat off overseas competition to grow its regional and overseas share of the floor tiles market.
The public shareholding company, which boasts worldwide sales of more than $400 million, is seeing hundreds of new global companies attempt to gain a foothold in the market by advertising their products at the Big 5 construction exhibition in Dubai.
The company is confident that five main factors can ensure expansion of its dominant position - shorter delivery times, lower costs, after-sales services, flexible payment terms and high quality products.
"The market is getting more competitive as companies around the world become aware of the opportunities here, but we want to increase out market share and improve our position internationally, said Omar Ebrahim, business development manager at RAK Ceramics.
RAK Ceramics currently exports tiles and sanitaryware to 135 countries and collects 74 per cent of its revenues from overseas exports.
The UAE dominates its total sales with a 28 per cent share, compared to 32 per cent for all other GCC countries put together. The Asian market represents 10 per cent of sales, while Europe accounts for 20 per cent.
The company reported that its revenues grew at a compounded average growth rate (CAGR) of 19 per cent over 2001-2006, compared to a six per cent per annum global industry growth rate. Its 2006 net income hit Dh154 million.
Although a dominant player in the GCC, the company is facing heightened competition from international producers of marble flooring, ceramics, granite and natural stone.
The Big 5 exhibition has attracted many new participants, all eager to kick-start exports to a region experiencing frenetic expansion in the residential, hotel and shopping mall sectors.
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