India to be future hub: Roca

Bathroom solutions firm Roca would begin shipping products from India to its global subsidiaries, starting this year, in a move that could make the country its future hub, a top company official said today.
The Spanish company currently ships about one per cent of products manufactured in India to the US and Central Europe.
"In 2016, we will start exporting to Group (subsidiaries worldwide) significantly. India could be future hub (for Roca)," Roca Bathroom Products Managing Director Pau Abello Pellicer said.
Elaborating, he told PTI that the company, in the last two years, had allotted Rs 100 crore towards capital expenditure and working capital. "This year we are planning to invest Rs 40 crore," he said.

"We were exporting about less than one per cent to the United States, Central Europe. This year we will be exporting to the Group (subsidiaries) worldwide," he said.
Roca currently has seven manufacturing facilities in India that produce ceramics, faucets and plastics. "We will focus on exports to Malaysia, Australia, Europe, Russia, Middle East and Taiwan," he said.

On the group financials, he said the firm had registered Rs 800 crore sales in 2015 and expects about 15 per cent growth in 2016.
"Last year, it was a difficult year. In Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Andhra Pradesh, sales were flat. In Haryana, Uttar Pradesh, it was worse."

About 70 per cent of sales for Roca was contributed from retail segments while the remaining was through residential units. "We expect a 15 per cent growth this year. We are quite confident that the economy will rebound in 2016 and the 15 per cent growth what we have targeted is quite conservative."
Pellicer said currently 80 per cent of sales for the firm in India was from Parryware business while remaining was from Roca brand. The firm sells premium brands Armani Roca, Swiss brand Laufen, Johnsoon Suisse and Johnson Pedder in India.
On the sales in tier II and III cities, he said the company witnessed increase in demand for its products.

"Compared to metros, tier II and III are doing better. Presently, about seven per cent of sales was from tier II and III cities. We expect it will go to 25 per cent," he said, adding that the company also plans to create 150 new jobs.
"The total headcount is about 3,500. In 2016, we expect to add 150 in production. In our three factories in Tamil Nadu alone, we have 1,000 employees", he said.
To a query, he said Roca as a group registered revenue of about Rs 12,000 crore, of which India contributed seven per cent.