Roca India to Invest Rs 50 cr in a Pipe Manufacturing Facility in Rajasthan

One of India’s leading sanitaryware manufacturers, Roca India is reportedly in plans to infuse Rs 50 crore in its new Greenfield plant in Rajasthan to double its revenue. Roca India, the wholly-owned subsidiary of Spanish Roca Group, will set up its pipe manufacturing facility in Alwar, Rajasthan under its flagship brand Parryware.  The new launch is expected to help the company to cross its Rs 4,000 crore mark in the next four years. A detailed report by SURFACES REPORTER (SR).

The new launch of the Greenfield plant in Rajasthan is expected to be operational by mid-2023. As per reports, ‘the company aims to be optimistic with its growth strategy in India despite the economic headwinds and cost pressure.’ Roca India has spread across Odisha and Bihar in the east alongside strengthening its footprint in South India. With a Rs 50 crore investment in the manufacturing facility in Rajasthan, the company will now be expanding in the northeast, northern and western markets as well. At present, the company has seven manufacturing facilities in India.

With current revenue of nearly Rs 2,000 crore, the company’s growth strategy and focus on pipes will be able to grow at a 25 per cent CAGR and cross its Rs 4,000 crore mark in the coming four years. According to KE Ranganathan, Managing Director, Roca India, the size of the organised market for pipes meant for plumbing (excluding agriculture) is worth Rs 15,000 crore, almost three times that of the sanitaryware market, which is Rs 5,500 crore per annum. He pointed out that the pipes business has the potential to overtake the revenue from sanitaryware which currently contributes 75 per cent. “But in the next three years, its share will come down to 55 per cent, while pipes will contribute at least 25 per cent by then,” he was quoted in The Hindu. “The contribution of the pipe business to its overall revenue is just 5 per cent at present.”

Roca India had ventured into the pipes segment to increase its revenue share to 15 per cent in the next five years from the current 9 per cent contribution to its global sales.

Image credits: Roca India (for representational purpose)

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