Parryware Roca Private Limited, the Rs 400 crore sanitaryware company, is planning to leverage tie-ups with real estate companies to grow its business in India.
According to R Ramesh, VP - sales and marketing of the company, “Currently we supply products to close to 50 biggest real estate developers in the country. Going forward, we will look at exclusive tie-ups with real estate developers to supply sanitaryware in all their construction projects.”
The company recently tied-up with Chennai-based Vijay Shanthi builders. The tie-up provides for Vijay Shanthi Builders to use Roca brand sanitary ware in all their construction projects in the city. The agreement is expected to generate business over Rs 50 crore in the next two years for Parryware Roca.
Parryware is aiming at a turnover of Rs 800 crore and a growth of 30 per cent year on year.
The company reportedly plans to invest about Rs 135 crore in upgrading and ramping up production at its manufacturing units at Alwar, Perundurai, Dewas and Ranipet, to produce 6 million pieces of sanitaryware a year by 2010 from the present capacity of 4.5 million.
The company is also looking at greenfield sites to set up new manufacturing units, added Emilio Salazar, managing director of the company. The company will look at acquiring domestic sanitaryware makers with a strong regional presence, Salazar said.
With these initiatives, Parryware plans to garner 20 per cent market share from the present about 10 per cent of the Rs 200-crore organised premium sanitaryware market in the next 2-3 years, Salazar informed.
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Parryware launched its premium ‘Crestia’ collection in Kolkata today. The Crestia collection constitutes 22 products, priced between Rs 7,000 and Rs 50,000.
“We already have about 10 per cent market share of the premium sanitaryware market in India. The Crestia collection should help us double our market share in this segment,” Salazar said.
The current market size for bathroom solution products is Rs 900 crore, in which the organized sector accounts for Rs 500 crore while the rest is from the unorganized sector.
Parryware is witnessing a growth rate of 22 per cent.