The Hindu Business Line : E.I.D. Parry to sell 47% stake in Parryware to Roca for Rs 725 cr

Chennai, April 24 E.I.D. Parry (India) Ltd, the Murugappa Group company, has decided to sell its stake in the Parryware Roca joint venture to its partner, Roca of Spain.

According to a press release from E.I.D. Parry, its board has decided to sell the 47 per cent stake it holds in the 50:50 joint venture to the Roca Group of Spain. E.I.D. Parry will retain the balance 3 per cent. The company is selling its stake for €112 million (Rs 725 crore).

The release quoting Mr A. Vellayan, Vice Chairman, Murugappa Group, and Chairman, Parryware Roca (Pvt) Ltd, said it is a mutually beneficial move for the partners. The stake sale helps realise good value that can be invested in its core businesses. For Roca, the deal will ensure its strategy to stay ahead of the competition in the bathroom products market.

Roca acquired the 50 per cent stake in Parryware in 2006 for €50 million (Rs 275 crore). Mr Vellayan will continue as the Chairman of Parryware Roca, the release said.

Roca hopes to consolidate its leadership presence in the market with the Parryware brand and offer Roca’s own brands in India.

Mr K.E. Ranganathan, Managing Director, Parryware Roca, who will move back to the Murugappa Group, told Business Line that with this move, Roca cements its position here. It gets four factories with a total capacity of about 4.5 million pieces of bathroom-ware.

The transition has been a smooth process, with the Murugappa Group easing Roca’s entry into the market and Roca strengthening the production facilities with its technology.

Parryware, as a flagship brand, would be strengthened, and its present 46 per cent market share in the segment is expected to grow. Over the last two years, over Rs 50-60 crore has been invested in the company to strengthen the production and marketing.

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