Roca Group, Spain to buy majority stake in the Parryware Roca JV

Chennai, 24 April 2008: Roca Group, Spain, today announced its proposal to buy 47 per cent equity stake in their 50:50 Joint venture company – Parryware Roca Private Limited, Chennai.

Currently, the Group 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 50 per cent stake in the Parryware business of the Murugappa Group.

Roca Group, Spain will buy additional 47 per cent equity in the Indian JV held currently by EID Parry (India) Ltd. for a value of approximately Euros 112 million.

EID Parry board also approved today the proposed stake sale to Roca.

The above mentioned transaction is subject to approval of Foreign Investment Promotion Board.

Mr. Vellayan, the current Chairman of the JV company Parryware Roca (Private) Limited, 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 Dy. Managing Director of the company, will become the Managing Director of the company on receipt of required statutory approvals.

Parryware Roca (P) Ltd reached a turnover of approx. Rs.360 Cr in fiscal year 2007-08, which represents + 25 per cent growth over previous year. Parryware brand consolidated its leadership in the organized sanitary ware market and moved forward in its taps business. Roca brand was successfully launched in India 1 year ago, and already has set up a distribution network of more than 50 showrooms covering 30 cities. Also the 4 factories of PRPL have gone through major improvements during the last 2 years, with increased investments in technology and support from Roca technicians.

Commenting on the move, Mr. Vellayan, Vice-Chairman of the Murugappa Group 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, Sr. Managing Director of Roca, Spain said, “We are very happy to increase our stake in the company. India is one 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.”

About Parryware Roca Private Limited
Parryware Roca Private Limited is a 50:50 joint venture between EID Parry and Roca Sanitario. Headquartered in Chennai, India, Parryware Roca has under its fold the entire range of products that include vitreous sanitaryware, seat covers, plastic cisterns, bath tubs, kitchen sinks, electronic flushing systems and an imported range of bathroom products. Parryware is the first and only sanitaryware manufacturer in India to be conferred ‘Superbrand of India’ status. From being a sanitaryware brand, Parryware is transforming itself into a total bathroom solutions provider.

ROCA is a leading player in the world in the business of the bathroom ceramics. ROCA has a commercial presence in more than 120 countries with a Group turnover amounting to approximately Euro 1.7 billion (Rs.10500 crores). ROCA is ranked World No.1 in the sanitaryware market.

Roca has been ranked world No. 1 and Parryware Roca ranked No. 9 in the world in the sanitaryware industry by Ceramics World in 2007.

For further information, please contact:
Chandrika Raman
Asst General Manager -
Group Corporate Communications
Murugappa Group
Tel: 25306535 / 98400 71172
chandrikaR@corp.murugappa.com

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