Sanitaryware and bathroom solutions provider Roca Bathroom Products Ltd is expecting 25-30 per cent growth in turnover of around ₹2,200-2,300 crore during the current year, backed by new product launches, digital initiatives and loyalty programmes to strengthen its consumer base.
The company, which had launched its range of products in the southern market in 2019, has expanded to in eastern regions of West Bengal, Odisha and Bihar.
According to K E Ranganathan, Managing Director, Roca Parryware, the company has witnessed nearly 40 per cent growth in sales during January-June (so far) this year and is confident of sustaining the momentum during the remaining part of the year.
“In 2019 (pre-Covid year), we had recorded 18 per cent growth in business and were the fastest growing company. In 2020, our growth dropped to -20 per cent due to complete lockdown. But in 2021, we’ve registered nearly 55 per cent growth in business and in the current year so far we have recorded 40 per cent growth,” Ranganathan told BusinessLine.
Creating secondary sale pull, opening of new markets, rolling out slew of digital initiatives and loyalty programmes has helped create good demand and contributed to growth, he said.
Parryware, considered to be the market leader in bathroom products is the flagship brand in the portfolio of Roca India. The company accounts for 8-9 per cent of global sales of Roca Group, estimated to be close to 2 billion euros.
Pipes and fittings
The overall market for pipes and fittings in India is estimated to be close to ₹27,000 crore. Of this, the organised segment accounts for nearly 55 per cent at close to ₹15,000 crore.
The company, which rolled out its pipes and fittings range in the southern markets in 2019, claims to hold 10 per cent market share. It has recently launched the range in Bihar, Odisha and now in West Bengal. It also plans product roll out in northern India next month.
Sanitaryware accounts for nearly 70 per cent of the company’s turnover at present, while the remaining 28-30 per cent comes from faucet and pipes, and fittings account for around two per cent.
The company expects pipes and fittings contributing 20 per cent of its sales in the next two-to-three years.
“Pipes and fittings will be one of our primary growth engines. We are expecting to grow by nearly 20-30 per cent every year for the next few years,” he said.
Roca Bathroom Products has invested around ₹50 crore for setting up a manufacturing facility for pipes and fittings at Alwar in Rajasthan. It is also looking to set up a unit for manufacturing faucets next year.
June 16, 2022