Roca India plans Rs 200 crore capex in 2023
The company is looking at inorganic growth opportunities in the plastics pipes and fittings market as well as in the faucets segment
Kolkata: Sanitaryware major Roca India, the Indian arm of the €2-billion Spanish bathroom products giant Roca Group, has lined up Rs 200-crore capital expenditure (capex) during the current year to fuel targeted double-digit growth.
The company is looking at inorganic growth opportunities in the plastics pipes and fittings market as well as in the faucets segmentis looking at inorganic growth opportunities in the plastics pipes and fittings market as well as in the faucets segment, a senior company official said.
"The company is open to acquisitions in the plastics pipes and fittings segment, which is a Rs 15,000-crore market. "Our presence is small in the plastics and PVC pipes segment, unlike in sanitaryware where we are leaders. However, we are growing at 50 per cent per annum and this year we hope to do Rs 150-200 crore business. The opportunity is huge and so we are looking at inorganic growth," Roca India Managing Director K E Ranganathan said.
The company operates in India as Roca Bathroom Products. Speaking about the faucets plant, he stated that the company, which has a manufacturing facility in Bhiwadi in Rajasthan, is nearing full capacity. "Either we have to look at expanding capacity at the existing location or acquire a company to meet the growing demand," Ranganathan said.
Roca India enjoys about 35 per cent market share in the bathroom products segment in the country, he claimed. It has eight manufacturing facilities in India and is also aiming at expanding its operations in the country. The company exports to several developed countries, including Australia, and European nations but the base is "still at a low single-digit percentage of the total revenue", he said.
Ranganathan expressed hope that exports could grow significantly in the next 5-7 years due to cost advantages. He said India remains a relatively cost-effective location for manufacturing bathroom products, which could give the company an edge in the overseas market.