The Parryware-Roca Joint Venture

The Indian sanitaryware industry could be divided into the organized and the unorganized sectors. The organized sector had three major players, who marketed their products nationally. They used high quality raw materials and advanced technologies. The unorganized sanitaryware manufacturers were small scale units that were exempt from excise duty and sales tax . They also used old technology, and priced their products 40-50% lower than the organized players. Though their products carried brand names, these were not recognized nationally. Parryware started production in the 1950s and grew steadily. In the initial years, there were not many competitors and the demand was also quite low...

In June 2006, Roca acquired a Malaysian company, Johnson Suisse Holdings AG, for US$ 27.8 million. In August 2006, it acquired Eagle Brand Holdings Limited (Eagle) of China for RMB 255 million. Eagle was a leading sanitaryware company in China and operated through its three China-based subsidiaries. Commenting on these acquisitions Jose Miguel said, "Our aim is to grow into a more global company."

EID Parry and Roca also announced their intention to invest further in the sanitaryware business. They also had plans for new acquisitions in the business...