Roca keen on mindshare over market share

Completing a century next year, the Spanish MNC has leveraged its strengths in design and manufacturing to roll out products that cater to all segments in a Rs 3,500-crore sanitaryware market.

Highlighting the strengths of the Parryware brand that it acquired from the Murugappa group, with whom Roca Group had stitched a JV in 2007, KE Ranganathan, President, Sales and Marketing, Roca Bathroom Products offered a break-up of the brands in an organised market estimated to be worth Rs 2,000 crore. 

“Parryware, positioned as a mass premium product, had 30 per cent market share; Roca in the premium segment – had 35 per cent share, Armani and Laufen had 50 per cent share and the budget category Johnson had 5 per cent,” he said. Of its total turnover of Rs 1,000 crore, south constitutes a share of 55 per cent differentiating it as a dominant player compared to East, West and North, with each of the region contributing 15 per cent. “We have a market share of 65 per cent in Tamil Nadu and we are confident that our plans to counter competition are also on firm footing,” adds the marketer, who is back to steering the brand after coming on board in September this year. 

In volume terms, the country’s sanitaryware business, estimated to be 30 million pieces, has offered Roca Group the scope to be present in every segment of the pyramid – luxury, premium, mass-premium and budget. The Roca Group has 76 factories, a global presence in 150-plus countries and a workforce of 30,000 people. 

With its array of brands – Armani Roca, Holding Laufen, Roca, Parryware and Johnson Pedder, the sub-continent entity has been growing at a compounded annual growth rate of 10 per cent. With seven manufacturing facilities located in Alwar (Rajasthan), Bhiwandi (Maharashtra), Dewas (MP), Pantnagar (Uttarakhand), Perundurai (Erode), Ranipet and Sriperumbudur, the emphasis has been to use branding strategies that will enable customers to perceive it as an experience rather than a commodity. 

“Our first attempt is get the mindshare and then the market share,” says Ranganathan. Global sourcing of plastic has commenced from Tamil Nadu, where the Roca Group has its own factory. “Earlier, plastics used to be sourced from several other countries but now, the Roca seat covers are made in India. Australia Roca too has started to procure ceramic plastic covers,” he says. 

With a pan-India dealer network of 1,000 which retails through 6,000 outlets, he said plans are afoot to increase the number of exclusive branded outlets from 250 to 350 in three years. “While we are in 10 major cities, we are seeing the ‘B’ category towns (such as Patna, Guwahati) showing increased interest,” he says, He says, the Laufen range had been made available in 10 outlets across the country. 

There are about 5 outlets exclusively marketing Armani Roca – the ultra-luxury niche product, which has been supplied for the Lodha Group’s World Tower project for Rs 70 crore. Expecting the sanitaryware market growth to be upwards of 10 per cent, he says the bulk demand of 40 million houses is unfulfilled. 

“We estimate each house to have three pieces of sanitaryware, which will drive the new construction demand while the replacement market needs are at 60 per cent,” Ranganathan said, noting that functionality, ease of use, dimension and quality are the growth drivers for his brands.