Roca plans additional capacity for plastic products

Spanish major Roca is upbeat on its Indian operation with the country’s bathroom and sanitary ware segment registering a double-digit growth this year over a subdued growth of about 5 per cent last year.

Having consolidated its Indian operation with the acquisition of Parryware from the Murugappa group, it has stepped up its manufacturing capacities as also its pan-India retail presence.

Pau Abello Pellicer, Managing Director, Roca Bathroom Products, part of the $2-billion Roca Group, said the country’s market for bathroom products is a witness to a strong growth this year and could potentially grow by over 10 per cent, where Roca and Parryware will further consolidate the business.

The company has seven manufacturing facilities in the country across three segments.

Four units are for vitreous items, two of them located in Tamil Nadu, one in Madhya Pradesh and another one in Rajasthan, two units for plastic products at Sriperambudur in Tamil Nadu and one in Pantnagar, Uttarakhand, and one unit for faucets in Alwar, Rajasthan.

“While the ceramic unit and faucets unit have spare capacity, the plastics units that manufacture cisterns and covers are running at 100 per cent capacity. We are seeking to address this by either expanding at the existing facility where we have land or consider a new plant.

“A decision on this will be finalised during the year,” Pau Abello told BusinessLine .

“We continue to invest in India, a major growing market, and to use the manufacturing capabilities in India to export to other markets.

“Apart from expanding with our own facilities, we are open to making acquisitions in India and are constantly scouting for potential companies, though there is nothing to speak about at this time,” he said.

The company has capacity of 5.5 million pieces per annum of vitreous items, 3.8 million units for faucets, and 3 million units for plastic products (functioning at 100 per cent capacity), necessitating expansion, he said.

“Over the past few years, we have been investing about ₹50 crore per year towards marketing and retail and continue to invest similar amounts this year.

Last year we closed with revenues of over ₹800 crore and expect to see a growth of about 10-15 per cent this year,” he said.

“The GST is a great move for businesses with pan-India presence and will help organised sector to further consolidate and make it tough for unorganised businesses,” he said.

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