R.A.K. Ceramics (Bangladesh) Pvt. Ltd.

completed

RAK-Bangladesh is the largest ceramic tiles manufacturer in Bangladesh. It started its operations in November of 2000 with a manufacturing capacity of 2.0 million square meters per annum (sqm p.a.) of tiles. The proposed project involves: expansion of the existing ceramic tiles manufacturing capacity to 4.0 million sqm p.a. and setting up a 250,000 pieces p.a. sanitaryware plant.The proposed project will enable an internationally competitive local enterprise in the sanitaryware and ceramic tiles sector to expand. It will stimulate usage of the abundantly available, domestic raw materials such as clay and silica sand, as well as natural gas. The proposed project will create up to 300 direct jobs. Initially, RAK-Bangladesh’s production will be mostly for the local market where the project will contribute to import substitution and the consumers will gain substantially due to the lower prices resulting from the project. The Company plans to export to neighboring countries at a later stage. The project will also stimulate transfer of most advanced production technology, know-how and local staff training by a leading European equipment manufacturer and experienced Sponsor.IFC’s role in the proposed project involves: (i) providing long-term loan for the financing that would otherwise be difficult to mobilize from the local banks only; (ii) providing comfort to local banks and/or other financial institutions to lend to the Company; (iii) supporting a healthy, local, internationally competitive producer; and (iv) ensuring that RAK-Bangladesh conforms to high standards of environmental, safety and social consciousness, as well as to improved corporate governance.