Everest Industries is set to open a Dh55 million factory in Ras Al Khaimah, its first foray into manufacturing outside India.
The 750,000 square feet facility will make building materials for both residential and commercial properties.
“Everest is a very conservative and traditional organisation, hence considerable research and studies have gone into choosing a location for our first overseas venture,” said Aditya Somani, the executive chairman of Everest Industries.
The Ras Al Khaimah Investment Authority (Rakia) is aiming to encourage and promote foreign investment with the development of its industrial parks and free zones. Other companies already operating from the Rakia zone include steel companies from South Korea, Kuwait, India and Saudi Arabia and India’s Ashok Leyland.
An Everest spokesperson added that the decision to locate to the UAE’s northern emirate was taken based on data compiled by Rakia that showed setup and operating costs were between 25 and 30 per cent lower than other industrial zones in the GCC.
Rakia’s chief operating officer Probir Chakraborty said that this move signalled Rakia as a prime investment for manufacturers.
“Everest’s presence here is a testament to Rakia’s ability to offer unrivalled opportunities to foreign companies who recognise the value of setting up in a stable environment with low operating costs.”
Everest will initially produce fibre cement boards (FCBs) totaling 10 million square metres within 15 months. FCBs are a substitute for natural wood, helping to combat termite infestations or moisture problems that can warp wood paneling.
The company’s new facility will add about 70 full-time jobs and an additional 80 temporary jobs – like those that are contracted for the construction period.
“Everest’s venture at Rakia seeks to tap into market opportunities in the GCC and broader Middle East region,” a company spokesperson said.
Before this latest deal, the company exported products from eight locations across India reaching more than 30 countries. Moving to Rakia places Everest in a strategic location to efficiently and effectively reach other markets in the wider region
.
lgraves@thenational.ae
Follow The National's Business section on Twitter
