Roca to enter premium tiles biz, eyes Rs 100 cr revenue

Spain-based sanitary product maker Roca has planned to introduce high end tiles over the next six to eight months eyeing Rs 100 crore revenue, a top company official said.
Roca Bathroom Products, 100 per cent subsidiary of Spain-based Roca Group retails sanitaryware, taps with revenues of Rs 1,000 crore.
"We are planning to launch high end tiles.. May be in six to eight months (it will happen).. It will be in the super premium segment.," Roca Bathroom Products India, Managing Director, K E Ranganathan told PTI here.
Responding to a query, he said the domestic tiles business was valued at about Rs 30,000 crore and premium segment comprises about Rs 1,200 crore.. "Our target is to reach Rs 100 crore (business) in 2-3 years."

Meanwhile, Ranganathan said the company has undertaken the rebranding exercise of "Parryware" business with tagline "always in fashion."
"For this exercise we have enhanced the ad spend from Rs 30 crore last year to Rs 45 crore this year (2017)," he said, adding the company would look at entering tier II and III cities.

"We are also talking about expanding in tier II, III cities like Virudhunagar and Kancheepuram," he said.
On the exports front, Ranganathan said it contributes about five per cent to the overall revenue.
"We are exporting to various countries in Europe, United States.. Next month we will begin exports of sanitaryware to Australia," he said.

"It is very difficult to import in Australia because the country has AAA rating.."
Ranganathan said the company which grew five per cent last year, can grow at 15 per cent as part of its plan to garner Rs 2,000 crore revenue in 2020.
"Roca Bath Products Pvt Ltd reports Rs 1,000 crore revenue growing about 4-5 per cent year-on-year.. We believe we can grow at 15 per cent through the rebranding exercise, launch of new products..," he said.
On the Goods and Services Tax rates released by the Centre, Ranganathan said the increase in rates from existing 24 per cent to 28 per cent is against the Centre's Swachh Bharat" campaign.

"On one hand the government says we need toilets every where to avoid open defecation.. They talk about Swachh Bharat.. But on the other hand they are increasing the rates (GST) for the toilet (seats)," he said.
"We were expecting a decline from the existing 24 per cent. Instead, they have increased it to 28 per cent.. I hope they will revise it," he said.