FDI Inflows to Ceramics

FDI Inflows to Ceramics of ` 250 crore have been permitted in India through a Joint Venture concern between UAE-based RAK Ceramics and the ceramic industry in India. Ceramic tiles is one of the most significant component utilized in the improvement of houses.

Highlights of Ceramic Industry in India-

Ceramic Industry in India has made great contributions in the building of the houses, both in terms of interiors and outdoors. Ceramic tiles is one of the most significant components, utilized in the improvement of houses. Amidst a downfall of the total Indian economy, the Indian ceramic industry has been growing at a robust rate of 15 percent every year.

The production of the ceramic tiles during the year 2006-07 stood at around 340 million sq mts, accounting for a total investment amount of more than ` 2000 crore. The ceramic tiles industry are divided into organized and unorganized sector. The organized sector constitutes around 16 players and the present size of the unorganized sector of ceramic tiles has been estimated to be around ` 3000 crore business and it has occupied 55 percent of the total ceramic industry and also have attractive tax returns from the sector. The excise on the organized sector of ceramic industry accounts for more than ` 350 crore per year. India is the fifth largest tile production country across the globe. The ceramic industry is most likely to grow higher in the recent years to come.

FDI Inflows to Ceramics in India-

FDI Inflows to Ceramics of ` 250 crore in India through a Joint Venture concern between UAE-based RAK Ceramics and the ceramic industry in India. This Joint Venture was set up with the aim to activate import and distribution of ceramic floor and wall tiles as well as sanitary wares and their related accessories. In the recent period, UAE-based RAK Ceramics has declared its plans for expansion in the Indian market in order to make it's Indian JV unit the biggest contributor with 2 lakh square metre a day within the coming three years. RAK India has invested around USD 65 million on its ceramics unit in India and aims at touching USD 15 billion per year within the next three years.

Last Updated on 4/23/2011