Roca to buy 47% more in Parryware JV

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Spainish group Roca, on Thursday, announced its proposal to buy a 47%-equity stake in its Chennai-based 50:50 joint venture company, Parryware Roca Pvt Ltd, for a consideration of euro 112 million. Parryware Roca is equally owned by EID Parry (India) Ltd, a Murugappa group company and Roca Sanitario, Spain. The JV was formed in May 2006 when Roca acquired a 50% stake in Parryware from the Murugappa group.

Roca will buy the additional 47% equity in the Indian JV held currently by EID Parry (India) Ltd for a value of approximately euro 112 million, a Murugappa group statement confirmed. EID Parry board also approved the proposed stake-sale to Roca on Thursday, subject to the approval of the Foreign Investment Promotion Board (FIPB). A Vellayan, chairman, Parryware Roca, will continue to be the chairman, while current managing director KE Ranganathan will return to the Murugappa group. Deputy managing director, Emilio Salazar, will become the managing director.

Parryware Roca (P) Ltd clocked a turnover of approximately Rs 360 crore in fiscal 2007-08, posting growth of 25% over the previous year. Though the Roca brand was successfully launched in India a year ago, it has already set up a distribution network of more than 50 showrooms covering 30 cities. The company’s four factories have gone through major improvements during the past two years, with increased investments in technology and support from Roca technicians.