Spanish sanitaryware firm Roca eyes 15% growth this year

 Spanish sanitaryware major Roca is expecting its Indian business to grow by 15 per cent this year, after facing challenge in 2015, when the market growth was flat. The company is also planning to launch at least five to six electronic toilets under the Parryware brand in the country, a senior management official said.

The company, which invested around Rs 50 crore including capex last year, is expected to invest another Rs 40 crore this year in its plastic manufacturing facilities.

"Last year the growth was flat owing to various reasons including the poor offtake in the real estate market. This year, we are expecting a 15 per cent growth, as the market is expected to see revival. Some booster in the budget and the implementation of GST are expected to help the market," said Pau Abello Pellicer, managing director, Roca Bathroom Products Pvt Ltd. The compay has posted around Rs 800 crore turnover last year.

Last year it invested in its ceramics facility in Madhya Pradesh, doubling the capacity from 1.2 million pieces per annum to 2.4 million pieces. It has also invested into its faucet manufacturing factory.

At present, it has seven manufacturing facilities in India, with capacity to manufacture 6.5 million pieces of ceramics, 1.9 million faucets and 1.5 million cisterns and seat covers each, every year.

The company will be investing another Rs 40 crore this year to modernise the equipment and also the expand capacity in its plastics facilities (cisterns and seat covers), to 1.7 million pieces each. The facility in Sriperumbudur, near Chennai, will also see a slight increase in number of employees with this, he added.

Roca, which has been selling an electronic toilet product i-klin under the Parryware brand in India, is planning to launch around four to five electronic toilet products under the brand. This would include automatic seat covers and seats which could change temperature. It may be noted that the company has positioned the Parryware brand, which originated in the Chennai-based Murugappa Group firm EID Parry, as a mass brand.

It would import the electronic toilets from its overseas facility and is expecting a limited number of pieces to be sold initially, he added.

It would also launch an experience showroom of Parryware in Gurgaon on February, 2016, to showcase the products and the new introductions under the brand, said Pellicer. At present, the company has 1000 dealers and 9,000 sub dealers for Parryware and 180 dealers for Roca accross the country. It is also planning to add another 20 dealers for Roca in the tier II, III cities, he added

Resource : http://www.business-standard.com/article/companies/spanish-sanitaryware-firm-roca-eyes-15-growth-this-year-116011800650_1.html