Roca looks out for acquisitions. To invest €100 million in India
By Our Corporate Bureau | 16 Jun 2007
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Chennai: Spain's Roca Sanitario S.A, the world's largest sanitary ware manufacturer is on the look out for acquiring sanitary ware and bathroom accessories manufacturers in India through its joint venture, Parryware Roca Private Limited. The latter is a 50:50 venture between Roca and EID Parry India Limited.
Addressing the media here on Friday, Parryware Roca deputy managing director Emilio Salazar said, “We are looking at companies that would offer good synergies so that Parryware Roca becomes the market leader in all the segments. The size of the potential target company does not matter for us."
The Rs 300 crore turnover Parryware Roca has four plants in the country, two in Tamil Nadu at Ranipet and Perundurai, and one each in Madhya Pradesh at Dewas and at Alwar in Rajasthan. While the Tamil Nadu plants serve the Southern markets, the plants in Madhya Pradesh and Rajasthan cater to the Western and Northern markets. "Ideally we would like to be present in the eastern region to serve that market and save on freight cost," said managing director KE Ranganathan.
However, there are not much of incentives for the company, special economic zones (SEZ), or tax breaks, to set up a greenfield plant in the Eastern region.
Meanwhile, Parryware Roca has drawn up plans to invest €100 million in modernising its four plants and expanding their capacity. The investments will happen over a period of three years. "Both the partners will bring in the needed money," said Salazar. Post investment the company's capacity will increase to six million pieces per year up from the current 4.5 million pieces.
The company will make the Roca brand ultra premium sanitary ware products at its Perundurai, and Alwar facilities. Last March Parryware Roca launched its third brand, Roca, in the premium brand category. The company has opened 15 Roca showrooms and 40 more such stores are on the anvil across the country.
According to Ranganathan, the market size for ultra premium sanitary ware is around Rs100 crore and it is growing at a rate of 20-25 per cent. The Roca range of products is available in the price range of Rs 10,000 to Rs 80,000. The company's other two brands are Parryware (premium segment) and Johnson Peddar (middle market).
In order to boost its institutional sales, Parryware Roca has signed a MoU with the Chennai based Rs 108 crore turnover Vijay Shanthi Builders Ltd. As per the deal, Vijay Shanthi Builders will source its sanitary ware and tap needs from Parryware Roca.
According to Naresh Jain, executive director, Vijay Shanthi Builders, they hope to do a business of Rs 50 crore in two years time with Parryware Roca. The deal covers Parryware Roca's three brands.
Addressing the media here on Friday, Parryware Roca deputy managing director Emilio Salazar said, “We are looking at companies that would offer good synergies so that Parryware Roca becomes the market leader in all the segments. The size of the potential target company does not matter for us."
The Rs 300 crore turnover Parryware Roca has four plants in the country, two in Tamil Nadu at Ranipet and Perundurai, and one each in Madhya Pradesh at Dewas and at Alwar in Rajasthan. While the Tamil Nadu plants serve the Southern markets, the plants in Madhya Pradesh and Rajasthan cater to the Western and Northern markets. "Ideally we would like to be present in the eastern region to serve that market and save on freight cost," said managing director KE Ranganathan.
However, there are not much of incentives for the company, special economic zones (SEZ), or tax breaks, to set up a greenfield plant in the Eastern region.
Meanwhile, Parryware Roca has drawn up plans to invest €100 million in modernising its four plants and expanding their capacity. The investments will happen over a period of three years. "Both the partners will bring in the needed money," said Salazar. Post investment the company's capacity will increase to six million pieces per year up from the current 4.5 million pieces.
The company will make the Roca brand ultra premium sanitary ware products at its Perundurai, and Alwar facilities. Last March Parryware Roca launched its third brand, Roca, in the premium brand category. The company has opened 15 Roca showrooms and 40 more such stores are on the anvil across the country.
According to Ranganathan, the market size for ultra premium sanitary ware is around Rs100 crore and it is growing at a rate of 20-25 per cent. The Roca range of products is available in the price range of Rs 10,000 to Rs 80,000. The company's other two brands are Parryware (premium segment) and Johnson Peddar (middle market).
In order to boost its institutional sales, Parryware Roca has signed a MoU with the Chennai based Rs 108 crore turnover Vijay Shanthi Builders Ltd. As per the deal, Vijay Shanthi Builders will source its sanitary ware and tap needs from Parryware Roca.
According to Naresh Jain, executive director, Vijay Shanthi Builders, they hope to do a business of Rs 50 crore in two years time with Parryware Roca. The deal covers Parryware Roca's three brands.
