Spains Roca leads race to buy 50% in Parryware

Chennai, Jan 4 | Updated: Jan 5 2006, 05:31am hrs
The Murugappa group promoted EID Parry India Ltd is scouting for a possible suitor to offload about 50% of its stake in its recently hived-off sanitaryware division, Parryware for $45 million (Rs 200 crore).

Roca group of Spain is said be leading the race with others like Kohler, Duravit and American Standards in the fray.

KE Ranganathan, CEO, Parryware confirmed the development and told FE, We are in discussions with Roca Group and nothing has been finalised yet.

Roca is one among many companies EID is holding discussions for quite sometime. The other companies include Kohler, Duravit and the US-based American Standards. However, he refused to give further details.

Everything depends on the valuation of the company and the modalities are being worked out. We expect to finalise the deal with one of the foreign players by April/May, he said, adding that we are planning equity partnership with foreign partners and it could be even a joint venture.

Murugappa group had decided to hive off the Rs 195-crore sanitaryware division into a separate company in October. We got approval from shareholders through postal ballot. We will try to retain our brand equity-Parryware-post-stake sale, he added.

Washing Off

Kohler, Duravit and the US-based American Standards are also in the race to pick up stakes
Modalities are being worked out and the deal with a foreign player may be finalised by April/May
The company says it is planning equity partnership with foreign partners and it could be even a joint venture