Signs joint venture agreement with Roca of Spain
Plans to launch 15 new productsTo focus on top line growthPerundurai project to go on stream next month
CHENNAI: With Roca of Spain picking up a 50 per cent stake in it, Parryware Glamourooms Private Ltd. has drawn up plans to raise its share in the organised sanitaryware market to 44 per cent in the current year from 42 per cent.
The sanitaryware market size is estimated at Rs. 750 crore. Out of which, the size of the organised sector is placed at Rs. 360 crore.
Parryware Glamourooms was formed by spinning off the sanitaryware business of EID Parry, a Murugappa Group company, into an independent entity. Roca has now acquired 50 per cent stake in Parryware Glamourooms from EID Parry. The enterprise value of Parryware Glamourooms is placed at Euro 100 million.
Addressing a press conference here on Thursday, to announce the formal signing of the joint venture, A Vellayan, Vice-Chairman, EID Parry, said a name change for Parryware Glamourooms would be considered once the Foreign Investment Promotion Board (FIPB) approved the joint venture. In the new scheme of things, Mr. Vellayan said, the Roca brand would be positioned at the extra premium segment and the Parryware at the medium and premium segments.
K. E. Ranganathan, Director, said Parryware Glamourooms would focus on aggressive top line growth to beef up its market share.
The company, he said, had plans to launch around 15 new products this year even as it trained its eyes on improving the institutional business to Rs. 75 crore from Rs. 50 crore.
In this context, he said that the Rs. 60-crore state-of-the-art Greenfield project at Perundurai would go on stream next month. This would help the company increase the production capacity to four million pieces from 3.5 million pieces. Mr. Ranganathan said 32 per cent of the company's revenue came from new products. Every year, the company introduced around 20-25 new products in the market, he added.
Mr. Vellayan said Parryware Glamourooms was now gearing to enter the North and the West.
Jose-Miguel Roca, CEO of the Euro 17-million Roca, said the family-owned Spanish firm had come to India in view of the huge talent pool here.
Roca has 48 factories across the globe and operates in 80 markets. It has a workforce of 16,000 people.