Spain-based sanitaryware maker Roca Bathroom Products Pvt. Ltd. will invest close to ₹100 crore in capacity expansion and improving its market share in the mass market segment, a top official said.
“For the last three to four years, we have been investing close to ₹70-₹100 crore in increasing production capacity. This year too, we will be investing a similar amount. The company has a capacity to produce four million bathroom products and we will think about increasing the capacity after 2018-19,” said K.E. Ranganathan, managing director designate, Roca Bathroom Products.
Sriperumbudur unit
The world’s largest sanitary maker, which acquired the entire stake of Parryware from Murugappa group in 2008, is in the process of acquiring a private firm in Sriperumbudur, near here, for producing plastic toilet seats for exports. This would be the second production unit and increase the annual capacity of plastic seats from one million pieces to two million.
“Roca sells 40 million pieces of sanitaryware products globally every year. It procures 20 million plastic seats from different vendors. In India, we produce one million pieces per annum locally and the opportunity is huge to exploit. But, we will do it gradually,” he said.
Roca expects to complete the acquisition of the unit in the next two months and commence production of plastic toilet seats in October. The entire production will be exported. Currently, exports constituted 5% per cent of the total sales.
Though Roca has 79 factories in different parts of the world, India is the only country where we have a factory for producing plastic toilet seats. The Indian plant’s capacity is sufficient to meet the domestic demand. Now, the firm is thinking of sourcing plastic items out of India, he said.
“This is our centenary year. Our aim is to be the leading player in all the segments — mass, budget, premium and luxury. We are planning to increase Roca outlets from 200 to 300 in next two to three years and Johnson Pedder outlets from 500 to 5,000. We expect the growth to come from luxury segment (15%-20%), premium segment (15%) and mass market (10%),” he said.
During 2016, Roca clocked a revenue of ₹1,000 crore and aimed to touch ₹2,000 crore in 2020 by growing at a compounded annual growth rate of 20%. Right now, it is registering a year-on-year growth of 6%-7% while the market growth rate was 15% per annum, he said.
