RAK Ceramics, the world’s largest ceramic manufacturer, says its strategy of focusing on multiple markets is paying off now.

“We had been selling to over 100 countries on a regular basis, even when the local (UAE) market was booming,” says Abdallah Massaad, assistant CEO, RAK Ceramics. “If we wanted we could have focused only on the UAE market and sold large volumes but we did not as our strategy has been from the beginning to keep all the markets with us. That is paying off now as even though some markets are down there are others where there is demand.”
RAK Ceramics’ net profits during the first quarter of 2009 exceeded Dh65 million ($17.6 million), a 21.2 per cent increase compared to the same period last year.
The company recently launched Elegance Ceramics, a high-fashion brand catering to the needs of its growing portfolio of elite customers in key markets worldwide.
Accordingly, RAK Ceramics has opened exclusive Elegance Ceramics boutiques in Dubai, Abu Dhabi and Ras Al Khaimah to complement the RAK Ceramics showrooms. The new top-range products feature a distinct fusion of art and fashion through an extensive array of concept designs created by leading Italian designers.
“Elegance Ceramics is the perfect fit for customers with a distinctive taste in fashion, innovation and style. RAK Ceramics is keen to cultivate the immense potential of such a premium niche market. With Elegance Ceramics, we have achieved greater flexibility to offer a more dedicated, diverse and personalised range,” says Massaad, adding that market response to the product has been very good.
RAK Ceramics, a $700 million global conglomerate, has achieved a compound annual growth rate (CAGR) of 22.7 per cent in sales revenues for the period 2004-2008, with net profits growing annually by 24.1 per cent. In 2008 alone, revenues exceeded Dh2.5 billion or a growth of 15.6 per cent against 2007 with the UAE manufacturing plants accounting for Dh1.92 billion of all revenues.
The company has an installed capacity of 325,000 sq m per day for tiles and 12,000 pieces per day for sanitaryware through 10 modern tile plants and two sanitaryware factories at its 2 million sq m manufacturing facility in Ras Al Khaimah. The company also owns manufacturing subsidiaries in Bangladesh, Sudan, China, India and Iran, along with subsidiaries in Italy, Germany, Georgia, France, the UK, Australia and Saudi Arabia.
RAK Ceramics exports its products, ceramic tiles, Gres Porcellanato (dense porcelain tiles) and sanitaryware to over 135 countries.
It sources most of its raw materials in Europe.