RAK Ceramics, a global producer of ceramic tiles based in Ras Al Khaimah, is planning a Dh1 billion ($272 million) diversification and expansion programme.

Listed on the Abu Dhabi Stock Market, the company is looking at a capital boost of 10 to 15 per cent to meet its requirements to fund new projects including showrooms, production plants for new construction materials and high-value-added production units.
The fund-raising options include a further equity issue, it said.  Company managing director Dr Khater Massaad said it was also looking at other funding options which would include debts and joint venture partnerships.
As part of its expansion, the company is setting up a second Indian manufacturing plant in Gujarat.
The first Indian factory in Peddapuram in East Godavari district was set up in March this year at a cost of Rs2.55 billion. It has an initial production capacity of 20,000 sq m of ceramic tiles per day. The capacity will be enhanced to 40,000 sq m per day in 2007 and eventually to 100,000 sq m. The sanitaryware wing has also started production of 1,500 pieces per day.
The new Gujarat plant will also have an annual capacity of 7 million sq m in two years, he said.