ROCA picks up 50% in EID's Parryware unit

A DAY OF DEALS FOR CORPORATE INDIA

ROCA of Spain, a world leader in bathroom ceramics, will invest ¤ 50 million (Rs 270 crore) for 50 per cent stake in the Parryware unit of EID Parry India, a part of the $1.5 billion Murugappa group.

EID Parry has transferred the Parryware business into a wholly-owned subsidiary, Parryware Glamourooms, on March 1, 2006, a company release said.

The board of directors of EID Parry, which met on Monday, approved the proposal to form a 50:50 joint venture with the Spain firm, it added.

ROCA will be investing euro 50 million for its 50 per cent stake through a combination of direct subscription in the JV company and acquisition of the stake from EID Parry. The investment is subject to the approval of FIPB.

The joint venture will help Parryware to register significant growth through better technology, improved manufacturing practices, better product offering, increased presence in international market and improve the overall business value, the statement said.

ROCA is the second-largest company in the business of the bathroom ceramics in the world. It has a presence in more than 100 countries with a business volume of ¤ 1.6 billion. "The ROCA-Parryware combine will become the world's largest bathroom products company."

The board meeting also cleared a long-term strategy for EID Parry's sugar business, which envisages investment proposals aggregating about Rs 850 crore to be implemented over the next two years, including the Rs 300 crore currently under implementation.

The board also decided to acquire Parry Nutraceuticals (PNL) for Rs 32 crore and make it a wholly-owned subsidiary of the company.

Thus, with the restructuring of the Parryware business as a separate company, EID Parry will become a company predominantly focused on sugar and bio-products and will continue to hold investments in Coromandel Fertilisers, Parryware Glamourooms, Parrys Sugar and Parry Monsanto Seeds.