India to contribute 15% to Rocas global revenue in 3 years

Roca Bathroom Products, a wholly-owned subsidiary of Spain-based sanitary product maker Roca, expects its India business to contribute 15 per cent of its total sales over the next three years, according to a top company official.

Roca had a global turnover of 1.8 billion euros last year of which India contributed 10 per cent. "We should be around 15 per cent in the next three years, because India is growing at a faster pace, and exports from here to the Roca Group is also on the rise," Roca Bathroom Products managing director KE Ranganathan told PTI.

Roca India exports to Australia, the US, China, Europe, South Africa, and the UAE, among others, as the cost of production is still very competitive here.

The Rs 3,500-crore domestic sanitaryware market is clipping at 8 per cent. But more than 50 per cent of this is in the unorganised at about Rs 2000 crore, he said.

Ranganathan claimed his company enjoys 35-36 per cent of the organized sanitaryware market and is growing at double the market rate.

Its flagship domestic brand Parryware, which it had acquired in 2008, accounts for 70 per cent of the revenue and features among the top three brands of the group globally.

Institutional business contributes 30 per cent of the sales and the company has a tie-up with 500 developers.

Ranganathan further said the affordable housing segment has been booming and its brand Johnson Pedder that caters to the budget segment, has been growing at 74 per cent. Besides Parryware and Johnson Pedder, its other brands in India include Armani Roca, Laufen, Roca and Johnson Suisse.

The company, which is present in sanitaryware, faucets and plastic-based products, is also planning to enter the premium tiles segment next year under the Roca brand.

The company has a capex of 10 million euros each year and is augmenting its faucet capacity at an investment of 2-3 million euro.

The faucets category is growing at or more than 35 per cent for the company. The current capacity for faucets 1.5 million and for sanitaryware is 4 million.

"We will be going for sanitaryware capacity expansion in 2020 and will look at a plant in Gujarat or in a Western state," he said, adding the investment for a greenfield sanitaryware factory would be around Euro 50 million.

The company has eight factories (four sanitaryware, one faucet, three plastic) located in Madhya Pradesh, Tamil Nadu, Rajasthan, and Uttarakhand.

It also has five design studios and would add three more each year. It has 15 exclusive brand outlets in the country, 500 Parryware brand outlets, and also 200 Roca brand outlets. The company is also present through 8,000 multi brand outlets and 300 priority retail outlets.