REHAU Strengthens Indian Market Presence with 51% Stake Acquisition in RED Star Polymers
Pioneering Acquisition: A First in India's
Edgeband Industry, Setting New Standards for Growth
Chennai, 22nd October 2024: REHAU Group, headquarters in Germany., a
global leader in polymer product solutions for emerging markets like Interior,
Building, Windows, Railways(Metro), and Automotive across the world, has a
presence in over 100+ countries with more than 20,000 employees recorded
revenue more than €4.7 billion last year, has successfully acquired Majority
stake in Chennai-based RED STAR Polymers Pvt Ltd., through the Foreign Direct
Investment (FDI) from his Switzerland entity M/s REHAU VERWALTUNGSZENTRALE AG.
RED STAR Polymers, a leading producer of PVC Edgeband tapes has a manufacturing
facility in Sri City, Andhra Pradesh, and boasts a strong presence in South
India.
RED
STAR, under the leadership of Mr. Karthikeyan, a veteran with over 40 years in the furniture industry,
has rapidly grown to become one of the top-selling brands in the Edgeband
sector in just seven years. With a customer base of over 3,000, including
furniture OEMs, dealers, and carpenters, RED Star Polymers is a trusted name in
the region’s furniture industry. With RED STAR’s customer base, REHAU is
well-positioned to capitalize on the growing demand for affordable,
high-quality Edgebands in Tier II and Tier III cities. RED STAR Polymers
currently employs 200 people, a number expected to increase to 250 with the
upcoming expansion plans, further boosting the company’s capacity to meet the
future market demand. REHAU plans to acquire the remaining 49% of RED STAR
Polymers in the next three years, further solidifying its market presence.
With
this strategic acquisition,
REHAU is expanding its Edgeband product portfolio from existing Premium RAUKANTEX Edgebands sold over 75 years
worldwide and the last 27 years in India., is now targeting
the Mass-market Edgeband range with RED STAR. This move impacts the Indian
Edgeband market, where demand for high-quality, affordable Interior solutions
is increasing across retail and OEM markets. By diversifying its product range,
REHAU aims to meet a broader spectrum of customer needs while maintaining its
commitment to quality and innovation in the polymer solutions sector.
This
acquisition underscores REHAU’s commitment to the Indian market. For over 27 years, REHAU has made
significant investments in India, establishing the single largest manufacturing
facility for UPVC Edgebands at Vadodara, Gujarat the country and becoming the
market leader with more than 45% share in the organized OEM market. Employing
over 500 people in India, REHAU Polymers Private Ltd achieved sales revenue of
approximately ₹400 crore in 2023.
Commenting
on the acquisition, Mr. Rafael Daum, CEO Asia Pacific, REHAU,
said, “This acquisition is a crucial step in REHAU’s global expansion strategy.
While RED STAR has been serving South India, our goal is to leverage its
capabilities to cater to the growing mid-market in India, particularly across
Tier 2 and Tier 3 cities. These regions have traditionally been underserved,
but the customers here are aspirational and appreciate high-quality products. This
move not only strengthens our presence in India but also reinforces our
commitment to making premium products accessible to all. We are also evaluating
whether this approach can be replicated in other markets in Asia-Pacific region
with similar demand patterns.”
Mr.
Faiz Ahmed, Director of REHAU South Asia, added,
“The Indian furniture industry is undergoing rapid transformation, driven by
the growth of organized players and the fast-paced retail market. This
acquisition enables us to expand our reach while continuing to offer unmatched
quality, design, and value to all customer segments.”
Mr.
S Kartikeyan, Director, RED STAR Polymers said, “This collaboration with REHAU will be
transformative for RED Star Polymers. By integrating REHAU's advanced technologies
and global best practices into our operations, we will significantly enhance
our production capabilities and efficiency. This partnership will allow us to
introduce cutting-edge innovations, streamline our processes, and deliver even
higher quality products to our customers.”
Mr.
Lakshmi Pacha, Director of RED STAR Polymers,
expressed his enthusiasm about the partnership: “This acquisition not only
strengthens our market position but also opens doors for significant growth
across India. Edgeband products are growing in the Indian market, and with
REHAU’s support, we are well-positioned to serve the Mass-Market segment
in the country and also explore the export markets in the neighbouring
countries. To support this growth journey, we already have plans to expand RED
Star’s capabilities and increase our workforce by 25%.”
As REHAU continues to assess potential
opportunities for further expansion, the acquisition of RED STAR Polymers marks
a crucial step in the company’s journey to strengthen its presence in India’s
evolving market landscape, especially in regions where cost-conscious consumers
seek reliable and affordable solutions.
About REHAU INDIA
Established in India in 1997, REHAU is a German-based brand
and a leading provider of polymer-based solutions in the global furniture and
building industry. With a consolidated manufacturing facility transformed into
a Centre of Excellence in Vadodara, REHAU leverages advanced German technology
to specialize in a wide range of products, including uPVC Edgebands, solid
surfaces, pre-laminated boards, laminates, and underfloor heating and cooling
solutions. Renowned for its commitment to quality and innovation, REHAU is
dedicated to exceeding the expectations of its customers with every product.
