Mr. Bhupendra G Vyas, President, RAK Ceramics, qualified with a master’s degree in Management Studies from one of India’s premier institutes (JBIMS), University of Mumbai, Vyas has specialized in Advanced Marketing, Advertising & Sales Promotion and International Business. He is actively working on Brand Promotion, innovative marketing strategies, maximizing SCM model and developing a wide geographical base for the brand. His career spans with opportunities of working in Consumer products, telecommunication and Tiles Industry. He began his career as a brand manager in Bajaj Sevashram and thereafter worked at various senior level positions in Marketing & Sales with Companies like Camlin, Ericson, Siemens before striking a sonnet with the Tile Industry.
RAK Ceramics has become the world’s no. 1 tile manufacturing company with annual production of 117 million sqm tile. Based in Ras Al Khaimah, RAK Ceramics is a $1bn conglomerate, present in 150 countries. With a close knit network of 15 manufacturing plants across 5 continents, distributors in over 100 countries and independent agents in other countries, RAK ceramics has touched lives of millions. As a trend setter, RAK Ceramics’ latest varieties and shades are spread to more than 8000 designs. In the recent years, the Company has set up its own subsidiaries in Italy, Germany, France, United Kingdom, Switzerland, Belgium & a few other countries and to effectively market its products, and maintain stocks for easy supply & distribution. The company’s global production of tiles exceeds 360,000 sqm and 12,000 pieces of sanitary ware per day from its state-of-the-art manufacturing plants in the UAE, China, Sudan, Bangladesh and India.
Speaking with Yash Ved of IIFL, Bhupendra G Vyas says, “We are planning an IPO by June 2012.”
How many showrooms are you planning to open?
Currently RAK is available through a close knit network of 18 exclusive showrooms and over 600 dealer showrooms across India with product portfolio ranging from fully vitrified polished, unpolished, semi-polished, rustic and glazed rustic tiles.
We intend to open more dealers across India, this will increase the number of dealers to around 750 by end of 2011.
Are you seeing demand picking up for your tiles?
Off late, the construction and real estate sector has experience a major boom in India. Growth in public, hospitality, IT, banks and renovation segment has created a substantial market for high end flooring solutions.
Over the last 2-3 years, the demand for RAK’s products has exceeded supply. Even during recession there was an overwhelming response for RAK products due to which the company invested in expanding the capacity of its plant in Andhra Pradesh by 50%. We currently produce around 30000 sqm tiles per day. By its innovative and high end technologies, RAK is the only company in India to manufacture all the 9 variants of vitrified Tiles. 80-85% of RAK production is high end product.
Brief us about your business model?
Based in Ras Al Khaimah, RAK Ceramics is a US$1bn conglomerate, present in 150 countries. With a close knit network of 15 manufacturing plants across 5 continents, distributors in over 100 countries and independent agents in other countries, RAK ceramics has touched lives of millions.
Constant innovation and investment in latest technologies is the core competency of our Business. At RAK, We believe that each customer is unique and needs to be provided best of the products.
Which countries do you export your products?
The company's products are being exported to more than 150 countries across five continents. RAK Ceramics, UAE, presently is engaged in the production of about 227,000 sq m per day of ceramic / vitrified tiles and about 8,500 pieces of sanitary ware per day.
The Company has set up its own subsidiaries in Italy. Germany, France, United Kingdom, Switzerland, Belgium and a few other countries and to effectively market its products, and maintain stocks for easy supply & distribution.
The company’s global production of tiles exceeds 360,000 sqm and 12,000 pieces of sanitaryware per day from its state-of-the-art manufacturing plants in the UAE, China, Sudan, Bangladesh and India.
Brief us about your expansion plans?
We will be setting up a tile unit in Ahmedabad with a production capacity of 10,000 sq mtr tiles per day. We also intend to scale-up the capacity to 70,000 sq mtrs tiles per day. RAK Ceramics India, which started production from Samalkot with 20,000-square metre (sqmt) per day, currently has a capacity of 30,000 sqmt.
The investment will be over Rs 6bn.
Comment on your JV agreement with Kludi Group?
KLUDI-RAK is a joint venture between KLUDI & RAK Ceramics. The JV operates four major brands in India – JOOP, Espirit, KLUDI and KLUDI-RAK.
KLUDI is a global player for bath fittings, with manufacturing facilities spread across Europe. KLUDI as a brand manufacturer offers its customers products and services of high quality. RAK Ceramics is world’s largest ceramic manufacturer global tile brand with presence in 150 countries across 5 continents.
This joint venture is going to serve customers the best fittings - with a bend towards innovation and sustainability – the key characteristics exhibited by both brands. KLUDI–RAK will cater to the design and styles oriented masses. It will offer nothing less than the best from the world of bathroom and kitchen fittings.
The success story of KLUDI since the past 80 years has been a proof for its efficiency and consistency in the play of global leaders and through KLUDI-RAK they plan to establish the same across India. It has its huge manufacturing base at Ras Al Khaimah, where it manufactures world-calls quality faucets and other related products.
With the entrance of an Eminent brand Like KLUDI–RAK in India, the meaning and standard of lifestyle is bound to achieve higher sophistication.
What is the current debt to equity ratio?
Our current debt to equity ratio is 1:1.
What are your IPO plans?
We are planning an IPO by June 2011.