The Germany-based Rehau Group, a global leader in polymer product solutions, has acquired a majority 51per cent stake in Chennai’s Red Star Polymers Pvt Ltd, which is valued at ₹46 crore. The acquisition was made through Rehau’s Switzerland entity, with plans to acquire the remaining 49per cent stake within the next three years.
Rehau, a €4.7 billion company, has been operating in India since 1997 through its subsidiary, Rehau Polymers Pvt Ltd (Rehau India). The company runs its largest UPVC edge band manufacturing facility in Vadodara, Gujarat, and claims to hold a dominant 45per cent market share in the organised OEM sector. Rehau India, employing over 500 people, reported a revenue of about ₹400 crore in 2023.
“The acquisition of Red Star is a milestone for Rehau, marking our first entry into the edge band sector in India and our first successful acquisition in the country. More such partnerships will follow,” said Rafael Daum, CEO of Asia Pacific, Rehau Group.
Red Star Polymers, founded by S Karthikeyan, is a major manufacturer of PVC edge band tapes, operating from its facility in Sri City, Andhra Pradesh. The company serves over 3,000 customers, including OEMs and dealers across India.
Karthikeyan said, “Together, with Rehau’s premium products and Red Star’s more accessible offerings, we aim to capture over 50per cent of the market in the next two to three years.”
The focus will be on addressing the growing demand in India’s furniture industry, which is expanding at an annual rate of 15per cent. Red Star Polymers plans to double its current production capacity of 2,400 tons per year through a multi-phase expansion at its Sri City facility. Phase 1 is near completion, with new machinery and increased capacity already in place, while Phase 2, involving further land expansion, is underway.
With both premium and mass-market brands under one umbrella, Rehau and Red Star aim to capitalise on India’s rapidly growing furniture industry and address the significant supply-demand gap in the edge band market. Additionally, Rehau plans to introduce Red Star’s products in emerging global markets that are looking for cost-effective solutions. Courtesy: https://www.thehindubusinessline.com/companies/germanys-rehau-group-buys-51-stake-in-red-star-polymers-eyes-a-significant-market-share/article68783705.ece