Financial Daily from THE HINDU group of publications
Friday, Apr 21, 2006
Financial Daily from THE HINDU group of publications Friday, Apr 21, 2006 |
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Corporate
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Mergers & Acquisitions Roca of Spain picks 50 pc stake in Parryware Glamourooms Our Bureau
MR JOSE-MIGUEL ROCA, CEO, Roca, and Mr A. Vellayan, Vice-Chairman, EID Parry, at a press conference in Chennai on Thursday. — Bijoy Ghosh
Chennai , April 20 , Roca of Spain has taken a 50-per cent stake in Parryware Glamourooms Pvt Ltd for about Rs 275 crore (€ 50 million). Parryware Glamourooms is a company formed by hiving off the sanitary ware division of EID Parry Ltd into a wholly owned subsidiary. At a press conference here today, Mr A. Vellayan, Vice-Chairman, EID Parry, said Roca would pay EID Parry € 50 million as soon as the FIPB clearance is obtained, after which the company's name could be changed. Answering a question, Mr Vellayan said the Murugappa group (to which EID Parry belongs) would continue to be in the sanitary ware and bathroom fittings business. "Both (the partners) bring different skill sets to the table," he said, adding that while the Indian partners had the brand equity and knowledge of the market, Roca had design and production capabilities and international presence. He said the foreign collaborator would help Parryware raise its productivity levels, making its products more competitive. Also, Roca would introduce its own products into India through the joint venture. Besides, products made here could be exported through Roca's international network, Mr Vellayan said. He observed that Roca profitably operated around 20 units in Europe, which spoke of its competitiveness. Besides, the company has production units in Brazil and Argentina and therefore had experience in running units in developing countries too. The sanitary ware industry in India is estimated at Rs 750 crore, of which around Rs 350 crore is with the organised sector. Parryware has a 42-per cent stake in this sector. With Roca-driven productivity increases, Parryware would capture a larger market share, Mr Vellayan said. Both Mr Vellayan and Mr Jose-Miguel Roca, CEO, Roca, said both the partners would continue to invest in the business. They also said they were looking at acquisition opportunities in the bath fittings area.
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