The REHAU Group strengthens position in India

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The REHAU Group, headquartered in Germany, a brand specialising in polymer-based solutions across sectors like interiors, construction, windows, railways (Metro), and automotive, has strengthened its position in India through the acquisition of a majority stake in Chennai-based RED STAR Polymers Pvt Ltd.

The strategic move was facilitated by Foreign Direct Investment (FDI) from REHAU’s Swiss entity, REHAU Verwaltungszentrale AG.

By leveraging RED STAR’s established customer base, REHAU is poised to tap into the growing demand for affordable, high-quality edgebands in India’s Tier II and Tier III cities. REHAU plans to acquire the remaining 49% of RED STAR Polymers within the next three years, further consolidating its market footprint.

The acquisition allows REHAU to diversify its product offerings, expanding beyond its premium RAUKANTEX edgebands, which have been sold globally for 75 years and in India for 27 years, to include more affordable edgeband solutions aimed at the mass market.

As demand for high-quality yet cost-effective interior solutions rises in India, particularly in retail and OEM sectors, this strategic move positions REHAU to cater to a wider range of customers while maintaining its commitment to quality and innovation.

The REHAU Group operates India’s largest UPVC edgeband manufacturing facility in Vadodara, Gujarat, and holds a 45% market share in the organized OEM sector. REHAU Polymers Private Ltd, which employs over 500 people in India, recorded sales revenue of approximately ₹400 crore in 2023.

Rafael Daum, CEO, REHAU Asia Pacific said, “The acquisition is a significant milestone in REHAU’s global growth strategy. RED STAR has excelled in South India, and we aim to utilize its strengths to cater to the expanding mid-market in Tier II and III cities. These regions have untapped potential, with consumers seeking high-quality products. This move not only strengthens our foothold in India but also aligns with our goal of making premium products more accessible. We are also exploring whether this strategy can be replicated in other Asia-Pacific markets with similar consumer demands”.

Faiz Ahmed, Director of REHAU South Asia added, “The Indian furniture industry is evolving rapidly with the growth of organized players and a booming retail sector. This acquisition enables us to broaden our reach while continuing to offer unmatched quality, design, and value across all customer segments”.

Mr. S. Karthikeyan, Director of RED STAR Polymers stated, “The partnership with REHAU will be transformative for our company. By integrating REHAU’s advanced technologies and best practices, we will significantly boost our production capabilities and efficiency. This collaboration will allow us to introduce innovative products, streamline our operations, and deliver superior quality to our customers”.

As reported by chennaionline.com, as REHAU continues to explore potential avenues for growth, the acquisition of RED STAR Polymers marks a crucial step in strengthening its presence in India’s evolving market, particularly in regions where consumers are looking for affordable yet reliable solutions.

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