21 April 2006: EID Parry India Ltd, part of the Murugappa Group, has partnered with Spain based Roca to form an equal joint venture called Parryware Glamourooms Pvt. Ltd.

Addressing a press conference, A Vellayan, Vice Chairman, EID Parry India, said that Roca would pay Euro 50 million (about Rs.275 crore) to EID Parry India for picking up a 50 per cent equity stake in Parryware Glamourooms Pvt. Ltd., subject to approvals from the Foreign Investment Promotion Board. Earlier during the year, EID Parry India had spun off Parryware segment as a separate division.

Parryware Glamourooms Pvt Ltd. is valued at Euro 100 million (about Rs. 550 crore) he added. The partnership with the Spanish bathroom solution provider would help the Indian company to leverage the upswing witnessed in the construction industry.

Both companies would have equal representation with three member each, while Vellayen will continue to be chairman of the company.

When asked what EID Parry India proposed to do with the Euro 50 million, Vellayan said the board of the directors fo the company would meet on April 24 and decide on the investment plan.

Vellayan pointed out that the objective of the partnership with the Spain-based company was to improve productivity and increase cost competitiveness.

With customers preferring contemporary designs being offered by a large number of foreign players entering the Indian Sanitaryware market, the partnership would position the company in better place, he added.

Roca Becomes Largest Sanitary Player
Roca, a Euro 1.7 billion (Rs. 9,400 crore) company, by entering into a joint venture with EID Parry India (Ltd) to form Parryware Glamourooms Pvt. Ltd has become the largest Sanitaryware player in the world.

Spain-based Roca has surpassed US based American Standard, the largest maker of Sanitaryware producing about 31 million units per annum.

Roca, which currently has 30 million units with its partnership with EID Parry India, would have combined Sanitaryware capacity of 33 million units per aannum.

Parryware Glamourooms Pvt. Ltd has about 3.25 million units and expects to increase its capacity to 4 million units during the current financial year.

Jose-Miguel Roca, CEO, Roca, said "Our plans are to eb a strong player in the Indian market. We would invest more on expansion of the existing factories and acquire companies in the bathroom solution space. However, I can not disclose the plans."

The Indian Sanitaryware market is estimated at Rs.750 crore (about 22 million units) of which organised sector is close to Rs.350 crore.

The premium segment is about seven per cent growing at 20 per cent while the mid segment is growing 25 per cent which Parryware plans to tap.

According to the plans chalked out by Parryware Glamourooms Pvt Ltd., business from hotels, malls, are expected to grow to Rs. 75 crore from Rs. 50 crore for the current financial year. The green-field plant in Perundurai set up with the technological assistance from Roca is expected to go on steam next month.

EID Parryware had invested about Rs.60 crore in the new plant.