Parryware's Perundurai facility goes on stream

Parryware Roca Private Ltd, a joint venture between Murugappa Group and Roca of Spain, has announced that its manufacturing facility at Perundurai in Tamil Nadu has become operational. The company has invested Rs 60 crore in the facility.

The new facility, located at the Sipcot industrial estate, will have a production capacity of 10 lakh pieces a year with machineries imported from Italy.

It is likely to supply products to the four southern states of Tamil Nadu, Kerala, Karnataka and Andhra Pradesh and to the export markets, especially the Middle East and South Africa where the company has a huge volume of business. The facility will employ about 500 people.

This is the company's fourth manufacturing facility after Ranipet in Tamil Nadu, Alwar, Rajasthan, and Dewas in Madhya Pradesh. The total production capacity of the company is estimated to be 45 lakh pieces per annum.

A Vellayan, chairman, Parryware Roca, said the company was likely to double its production at the Perundurai facility to 20 lakh pieces a year by the end of 2008. It was expected that all the units in Sipcot would get an assured supply of natural gas in 2008 and it was this factor that made the company to set up the new manufacturing facility in Perundurai.

"If this is implemented, our cost of production will come down by 15 per cent and we will be in a position to scale up our capacity and invest in the same," K E Ranganathan, managing director, Parryware Glamourooms Private Ltd, said.

Ranganathan said that Parryware had a market share of 43 per cent with the market size in the organised sector estimated at Rs 300 crore. The company, which entered the taps segment in 2005, has managed to garner 5 per cent market share in the Rs 1,500-crore market.

The company closed the financial year 2006 with a turnover of Rs 240 crore and is likely to post an increase of 35 per cent after the scaling up of its activities.