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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 11766 |
| Project name | R.A.K. Ceramics (Bangladesh) Pvt. Ltd. |
| Country | Bangladesh |
| Sector | Nonmetallic Mineral Product Manufacturing |
| Department | Global Manufacturing & Services |
| Company name | R.A.K. Ceramics (Bangladesh) Pvt. Ltd. |
| Environmental category | B |
| Date SPI disclosed | November 6, 2002 |
| Projected board date | December 13, 2002 |
| Status | Active |
| Previous Events | Invested: February 28, 2003
Signed: February 8, 2003
Approved: December 30, 2002 |
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| Project sponsor and major shareholders of project company |
R.A.K. Ceramics (Bangladesh) Pvt. Ltd. (RAK-Bangladesh, or the company) is 91% owned by Ras Al Khaimah Ceramics Company, U.A.E. (RAK-UAE), one of the leading sanitaryware and ceramic tiles company in the world. Established in 1989, RAK-UAE has an annual sanitaryware production capacity of 2.2 million pieces and an annual capacity of 40 million square meters of ceramic tiles. It has manufacturing plants in U.A.E. and Slovakia, and sales and distribution offices in France, Germany, Switzerland, and Australia. RAK-UAE’s products are exported to more than 125 countries across 5 continents. It is listed on the Abu Dhabi Stock Exchange.
The remaining 9% of the company is owned by Mr. S.A.K. Ekramuzzaman, the former sales manager at RAK-UAE and a nonresident Bangladeshi businessman. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $25.0 million. The proposed IFC investment is a loan of up to $12.0 million for IFC's own account. |
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| Location of project and description of site |
| The existing plant and the new project is located at the rapidly growing industrial area of Gazipur, 60 kms away from Dhaka city. The project site has easy access to major roads to Dhaka and all other infrastructure. |
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| Description of company and purpose of project |
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 venture will create up to 300 direct jobs. Initially, RAK-Bangladesh’s production will be mostly for the local market: the project will contribute to import substitution and consumers will gain substantially thanks to lower prices resulting from the investment. 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: providing long-term financing that would otherwise be difficult to mobilize from the local banks only; providing comfort to local banks and/or other financial institutions to lend to the company; supporting a healthy, local, internationally competitive producer; and ensuring that RAK-Bangladesh conforms to high standards of environmental, safety and social consciousness, as well as to improved corporate governance. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
The environmental documents will be available at the company's factory site:
RAK Ceramics -Bangladesh
Village Dhanua, P.S. Sreepur, District Gazipur, Bangladesh.
Phone: 880-2-891-1642
Fax: 880-2-891-7096 |
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| To contact the project company, please write to: |
Dr. Khater Massaad, General Manager
RAK Ceramics UAE, PO Box 4714, Ras Al Khaimah, UAE.
Phone: 971-7-244-5046
Fax: 971-7-244-5270 |
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