PNN
New Delhi [India], October 24: REHAU Group, headquartered 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 of more than EUR4.7 billion last year, has successfully acquired Majority stake in Chennai-based RED STAR Polymers Pvt Ltd., through the Foreign Direct Investment (FDI) from its 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 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, moving beyond its existing premium RAUKANTEX Edgebands, which have been sold globally for over 75 years and in India for the past 27 years, to now target the mass-market Edgeband range through RED STAR. This move impacts the Indian Edgeband market, where demand for high-quality, affordable Interior solution 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 in 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 Rs400 crore in 2023.
Commenting on the acquisition, 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."
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."
S Karthikeyan, 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."
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.
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