With the construction sector witnessing an uptick, there is a host of German brands hopping on to take the advantage of the opportunity to explore the Rs 2,500-crore faucets market.

The most recent one is the Germany-based Kludi group, which has entered into a joint venture with Ras Al Khaimah (RAK) ceramics to produce a wide range of taps, showers and faucets. The JV, which was formed three weeks ago, operates four major brands in India ? JOOP, Espirit, Kludi.

Kludi-RAK has made an initial investment of $2 million for the next two years. This money will be utilised in marketing various designs of faucets that are out on display. RAK Ceramics targets revenues of Rs 10 crore by the end of financial year 2011.

But it has been too long since 1999, when one of the first German companies, Hansgrohe came to India in cooperation with Jaguar & Company Ltd. The company, which is also a leading brand in bathroom fittings and showers, set up its exclusive stores in India 10 years ago.

Kludi-RAK plans to capture around 10% of the market within next three years. Janusz Palarczyk, general manager, Kludi group, said, ?We already have been in a joint venture with RAK in the UAE and three weeks ago, have signed a JV with RAK Ceramics India. In India, we are making investments to increase the already strong distribution network of RAK Cermaics. Our main driver of growth is going to be Indian construction sector.?

RAK Ceramics has subsidiaries in Germany, the UK, Italy, Belgium, Georgia, Australia, China, India, Saudi Arabia, Sudan, Bangladesh and Iran. It is one of the world’s leading producers of high-quality ceramic wall & floor tiles, vitrified tiles, and sanitaryware.

Another brand from the same region had forayed into India three years ago. In 2009, Grohe India Pvt Ltd (GIPL) was one of the top selling foreign brands for faucets. Says Sandeep Bhatnagar, head marketing – South Asia, ?It is the strong dealer and service network that makes a brand successful.?

Kludi, apart from facing a tough competition from domestic players such as Parryware, Hindware and Cera, has to also market its brand well. To this, Palarczyk said, ?We have been different in our approach. Kludi RAK is presenting its new faucets in the Paragon and Profile series, which are all equipped with new water-saving system that allows users to save up to 50% on water consumption.?

Palarczyk also added that their expertise lies in giving an overall good look to a bathroom and hence operates on ?prices points from 3 lakh per unit to 20 lakh per unit which is for the upper end luxury products.? He reckons that the brand will be available in 154 showrooms in India. Out of this, 40 showrooms already display and sell Espirit and JOOP products. The company at present has a dealership of 750.

Even the other partner in the JV has embarked on big expansion plans for the 2010-11 fiscal. RAK Ceramics plans to invest Rs 600 crore over next 18 months to set up a tile plant in Ahmedabad in Gujarat. The plant will be commissioned by early 2012 and would have an initial capacity to produce 10,000 square metre tiles per day. The company is also mulling an initial public offer by 2012 to raise Rs 150-250 crore.