Chennai: The €2 billion global brand Roca Bathroom Products will be setting up its first greenfield unit to manufacture pipes in Rajasthan, company officials informed on Sunday.
The sanitaryware leader entered India’s pipes and fittings market in 2018 in Madurai through its flagship brand Parryware. It now seeks to tap the growth opportunities in this fast-growing market, pegged to be around Rs 15,000 crore. The facility is scheduled to be ready for commercial production in two years. “We were earlier sourcing from outside, but as part of our de-risking strategy to reduce dependence on vendors, we felt this to be a prudent step,” said KE Ranganathan, MD, Roca Bathroom Products.
The company, which has been investing over Rs 100 cr every year on various verticals of its business (sanitaryware, pipes and fittings, and faucets), will be setting aside about Rs 50 cr for the new project. It is also looking to expand its faucet capacity (currently at 95 per cent in Bhiwadi, Rajasthan) by establishing a unit either in Tamil Nadu or Gujarat.
Making his maiden trip to India to understand the “ground” realities of the market, Ferran Vilaclara, Senior MD (APAC Bathroom Products), Executive Board, said the country is one of the key markets for the Barcelona-based sanitaryware brand. “We see India as a future,” he said, drawing a parallel to China which had seen a similar strong growth trend. He also said India is poised to become a big export hub for Asia. Roca has eight production facilities at Alwar, Dewas, Perundurai, Sriperumbudur, Ranipet, Bhiwadi, Irungattukottai and Pant Nagar.
Terming 2021 as its best year since inception, Ranganathan said the India revenues saw 53 pc growth at Rs 1,750 cr over 2020 despite COVID-19. While competition grew by 35 to 40 pc, Roca, riding on brand Parryware, has seen its market share pick up by 1 per cent. “In Q1, we have seen 25 per cent upwards growth, given our solid base of 2021. About 20-22 per cent of our global revenues come from new products,” he said, adding it would expect the momentum to sustain, as it targets going past Rs 2,000 cr revenue mark this year.