The Spain-based sanitary product maker Roca is working on plans to double its global sales in the next four years to Rs 2,000 crore, driven mainly by new product launches, brand introduction and exports to other geographies.
Besides, the company, which acquired Indian brand Parryware in 2006, expects that exports from Indian unit would grow to new territories such as Australia, Europe and contribute up to 13 per cent of its global sales.
"Today, we (Roca India) contribute 8 per cent of the global turnover and definitely, India would be growing higher than other global markets. With 15-20 per cent CAGR in four years, we should double our revenue and... Would be 12-13 per cent of global turnover," K E Ranganathan, Roca Bathroom Products President (Sales and Marketing), told PTI.
He further said: "In India, Roca's revenue is Rs 1,000 crore where the share of the Parryware brand is around Rs 750 crore."
Indian market is the third-highest contributor in Roca's global fold, followed by Spain and Brazil, at 1.7 billion euro.
The company has already started shipping its range of tap and fittings to Europe and other sanitaryware products to Australia and is expecting a huge order from the UK.
"Export right now is about 2-3 per cent of the revenue and... I expect that to be a minimum 10 per cent," Ranganathan said.
According to him, "the most exciting opportunity for us would be to ship our products to Roca group worldwide. That we expect will catapult (us) to 20 per cent growth level. The Indian market would grow at 15 per cent. The additional growth would come from shipping goods to global markets".
The company, which has luxury brands such as Armani Roca and Laufen besides Parryware, is lining up money for manufacturing and has plans for acquisitions here.
"There would be two investments - one is investment in our existing factories and other buying smaller players... In plastics, we are always open to buy. We have two factories, but are looking for opportunities to acquire more because of the global demand of the Roca group," he added.
"In taps and faucets, we are also open to acquiring good brands and manufacturing facility as we need capacity for growth."
However, he did not offer details, saying the company has "substantial money available".
Roca, with a 45 per cent market share in the premium segment, expects the ratio of luxury brands will increase in coming years. To tap the growing luxury segment, it will introduce more brands in the Indian market, in addition to the existing 60 worldwide.
"We have launched Johnson Suisse, a Malaysian brand 3-4 months ago. You would definitely see 3-4 more brands hitting the market. Candor is also a possible brand. We are still evaluating other opportunities... Brand which is relevant. At an appropriate time, we would bring them," he added.
Currently, the top 10 cities contribute 55 per cent of Roca's revenue in India and the company expects the ratio of the rest of the country to go up slightly.
Besides, Roca, which has one display studio in Delhi, has plans to add two more and the possible locations are Kerala, Mumbai or Hyderabad.
"Every year, we would open in two key metros. We have identified 10 cities where we would have these studios in 2-3 years," Ranganathan added.
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