Leading global sanitaryware and bathroom solutions brand Roca hopes to sustain strong double-digit growth in the Indian market with new investments in capacity and production expansion this year after achieving record growth in 2021 amid Covid-related disruptions.
Indian operations achieved their all-time high revenue in 2021. “We recorded close to 53 per cent growth. Last calendar year was the best-ever year for the company,” said K E Ranganathan, Managing Director, Roca Bathroom Products Pvt Ltd (RBPPL), the Indian arm of Spanish brand Roca.
While the company is bullish on the strong growth curve in its core businesses, it is also looking to set up a unit to manufacture pipes and fitting products to capture the growing opportunity in the Rs.1500-1800 crore market. The unit is expected to come up at its existing factory campus in Rajasthan and the investment is likely to be in the region of about Rs.50 crore. “This factory will serve the demand in northern markets, while we have been catering to the south demand through sourcing from a unit here,” he said.
Since the company is running on 95 per cent capacity for faucets, it is expected to ramp up the capacity further this year. “Overall, the company is expected to invest Rs.80-90 crore in manufacturing and markets in 2022,” said Ranganathan.
A big focus on consumers, a stronger distribution network, well-established partnerships with dealers, builders and architects, and continuous innovation in products, among others have been the key drivers of the company’s strong growth in sales. “We are not only a strong customer-oriented company but also a demand generating company. This helped us grow bigger and faster,” he said.
The significant growth in sales in 2021 has also driven the company’s market share northwards – up from 34 per cent to 35 per cent in 2021 in the Rs.6000 crore organised sanitaryware market in India.
This calendar year 2022 also has started well for the company as March quarter sales have grown by 25 per cent plus, “thanks to the well-crafted execution strategy, says Ranganathan adding, “this strong growth comes on a solid base of 2021. Our actions lead to results, and new products excite the customers.
“Product innovation is core of our business. For eg, we innovated on products meant for flights to save a lot of water. We will continue to innovate as water is precious and we are a sustainable company. Though we have a good business in China, India is a promising country for future growth. We will see good growth in the next 5-10 years in India and we will continue to invest in capacity and capabilities,” said Ferran Vilaclara, Board Member of ROCA Sanitario, Spain.
Roca Bathroom’s stronger focus on innovation and up-gradation of products to suit consumers’ tastes has helped the company secure close to one-fourth (about 22 per cent) of revenues from new products. “Not many companies globally garner such share of revenues from new products,” stated Ranganathan.
April 25, 2022