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[May 2008]
Roca Group Buys Further 47% of Parryware Roca JV
Roca Group is to buy a 47% equity stake in its 50:50 joint venture (JV) company – Parryware Roca Private Limited, Chennai, India.
Currently, the JV company is equally owned by EID Parry (India) Ltd, Chennai and Roca Sanitario, Spain. The JV was formed during May 2006 when Roca acquired a 50% stake in the Parryware business of the Murugappa Group.
Roca is now buying an additional 47% equity in the Indian JV held currently by EID Parry (India) Ltd for a value of approximately €112 million. EID Parry board has approved the proposed stake sale to Roca. The transaction is subject to approval by the Foreign Investment Promotion Board.
Mr Vellayan, the current Chairman of the JV company Parryware Roca, will continue to be the Chairman of the company, while the current Managing Director – Mr K E Ranganathan – will move back to the Murugappa Group. Mr Emilio Salazar, currently Deputy Managing Director of the company, will become the Managing Director of the company on receipt of required statutory approvals.
Parryware Roca reached a turnover of approximately Rs 360 crore in the fiscal year 2007-08, which represents +25% growth over the previous year. The Parryware brand consolidated its leadership in the organised sanitaryware market and moved forward in its taps business. The Roca brand was successfully launched in India a year ago and already has set up a distribution network of more than 50 showrooms covering 30 cities. Also, the four Parryware Roca factories have gone through major improvements during the last two years, with increased investments in technology and support from Roca technicians.
Commenting on the move, Mr Vellayan said: “It is a win-win move for both the partners. For EID Parry the stake sale will help realize good value which can be invested in its core businesses. For Roca, the deal will ensure its strategy to stay ahead of competition in the high growth Indian bathroom products market”.
Mr Domingo Colomo, Senior Managing Director of Roca, said: “We are very happy to increase our stake in the company. India is one of the growing markets in the world and is expected to grow in a sustained manner due to infrastructure boom in the country. For us, it is important to consolidate our market leadership in India with the Parryware brand and also offer our Roca brand to Indian consumers to meet their increasing demand for international products”.
www.murugappa.com
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