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Kajaria Ceramics has announced that it has entered into a joint venture for carrying out the business of glazed vitrified tiles and sanitaryware in the United Arab Emirates. A joint venture agreement was executed on December 15 between Kajaria Ceramics' subsidiary Kajaria International DMCC, UAE, and Al Rathath Marble Factory LLC, UAE.

The purpose of this agreement is to run the business of glazed vitrified tiles, sanitaryware, bath-ware products, marbles, granites, natural stones, and allied products in the UAE through a company, Kajaria RMF Trading LLC, UAE, by way of acquiring its shares in an equal ratio of 50:50 on joint venture basis.

As part of the agreement, two directors, one from each party, will be appointed to the board of the joint venture company -- Kajaria RMF Trading LLC, UAE.

The parties will acquire shares of the joint venture company in a 50:50 ratio and any increase or decrease in the share capital of the joint venture entity will require the approval of both parties.

Initially, 1,000 shares of 1,000 Arab Emirate Dirham (AED) each will be issued at par value in an equal ratio to the parties.

Kajaria Ceramics, is a leading manufacturer of ceramic or vitrified tiles in the country, with an annual aggregate capacity of 84.45 mn sq meters, distributed across eight plants.

Shares of Kajaria Ceramics are trading at Rs 1,105.45, down 1.28 percent.

(Edited by : Rukmani Krishna)