The Hindu Business Line : Parryware Roca investing Rs 550 cr in expansion

JOINING HANDS:(From left) Mr K.E. Ranganathan, MD, Parryware Roca Pvt Ltd; Mr Naresh Jain, Executive Director, Vijay Shanthi Builders, and Mr Emilio Salazar, DMD, Parryware Roca, at a press conference in Chennai on Friday. — Bijoy Ghosh

Chennai June 15 Parryware Roca Pvt Ltd plans to invest € 100 million (Rs 550 crore) over the next two years to expand its presence in the Indian premium and luxury sanitary ware market. This would include investments to upgrade its existing units, setting up new units, acquisitions and marketing, according to Mr K.E. Ranganathan, Managing Director, Parryware Roca.

The partners in the 50:50 joint venture, EID Parry and Roca Sanitario (Spain), would bring in the investment without involving any debt.

Mr Ranganathan was addressing a press conference to announce a tie-up with the Chennai-based Vijay Shanthi builders. The tie-up provides for Vijay Shanthi Builders to use Roca brand sanitary ware in all their construction projects in the city. The agreement is expected to generate business over Rs 50 crore in the next two years for Parryware Roca, he said.

The company plans to invest about € 25 million (Rs 135 crore) in upgrading and ramping up production at its manufacturing units (at Alwar, Perundurai, Dewas and Ranipet) to produce 6 million pieces of sanitary ware a year by 2010 from the present capacity of 4.5 million. The units, so far manufacturing Parryware products, would start making Roca brand of products by the end of this year. Roca products launched in the Indian market recently are imported from Europe for now. The company is also looking at a greenfield site to set up a new manufacturing unit, possibly in the east where it lacks a presence, Mr Ranganathan said.

Roca products manufactured in India would cater to the domestic market. However, in the next 3-4 years, the company plans to export some of the production to regions around India, Mr Emilio Salazar, Deputy Managing Director, Parryware Roca, said.

Besides spending on marketing, the company plans to add 40 new showrooms to the existing 15 and partnering with 50 exclusive dealers for Roca. The company will also look at acquiring domestic sanitary ware makers with a strong regional presence, Mr Salazar said.

With these measures, Parryware Roca plans to garner 20- 25 per cent market share (from the present about 12 per cent) of the Rs 100-crore organised premium sanitary ware market in the next 2-3 years, Mr Ranganathan said.

Mr Naresh Jain, Executive Director, Vijay Shanthi Builders, said the company has over Rs 1,360 crore worth of projects representing 56-lakh sq ft of built-up space in the pipeline. Roca products would be used in apartments targeting a wide range of market segments.