Most players opt for out-source model due to an increase pressure in cost

Among the largest ceramics’ brands in the world, RAK Ceramics specialises in ceramic and gres porcelain wall and floor tiles and sanitaryware. The company produces 110 million sq m of tiles and 5 million pieces of sanitaryware per year at its 16 state-of-the-art plants across the UAE, India, Bangladesh and Iran. Headquartered in the UAE, the group’s annual turnover stands at about US$ 1 billion, In India, RAK Ceramics has among the largest and most modern vitrified tile manufacturing plant in Samalkot in Andhra Pradesh with a manufacturing capacity of 30,000 sq m of vitrified tiles; and 3,000 sanitaryware pieces per day. Currently, RAK is available through a close knit network of 12 exclusive company showrooms and over 800 dealers across India. Further, it is also actively enhancing its footprint by opening company owned orientation centres, exclusive and privilege dealer outlets and seeping further into multi-brand outlets across the country. Parthasarathy Ramanujam, Vice President-Asia Pacific, RAK Ceramics, shares more on the company’s plans and offerings… How do you view the current market for tiles, ceramic and sanitaryware? Sanitaryware is on the growth path, thanks to the investment being made by the government on mass housing and other government projects. However, the segment is getting too cluttered at the bottom of the pyramid and most key players are opting for the out-source model due to an increase pressure in cost. With regards to the average pricing per bathroom, there has been a drop, as all players are moving down the pyramid due to a competitive environment.  Tell us about your offerings in this segment. We address the mid and high-end segments. The mid-segment is catered to by RAK India products while the high-end segment is catered to by RAK UAE ranges. How do you view the demand for superior and premium products, not just from the Tier-I, but Tier-II towns as well? There has been stupendous growth being witnessed in the Tier-II cities, thanks to the government’s initiative of smart cities. Also, the increase in the disposable income has made way for the demand of superior and premium products.  How do you view projects under PMAY and the real estate sector contributing to the growth of this segment? Where do you see maximum demand coming from? Maximum demand in terms of volume is coming from PMAY, however, the average selling price seems to be too low in this segment, giving the unorganised players a great chance to push their ranges. To cater to this demand, several organised players have started out-sourcing from these unorganised players to cater to this demand.  What’s trending? Any particular specifications coming from architects, builders or interior designers? Products with the following features are getting accepted in the recent days: Rimless wall hungs, which are more hygienic and easy to clean. Compact closets for space constraint bathrooms. Furniture (vanity) is on demand, thanks to the space-saving attribute. Hidden fixation is favoured the most due to better aesthetics and no accumulation of dust.