The Parryware-Roca Joint Venture
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Case Details:
Case Code : BSTR240
Case Length : 17 Pages
Period : 2005-2006
Organization : Parryware Roca Pvt. Ltd.
Pub Date : 2006
Teaching Note : Available
Countries : India
Industry : Ceramic
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction Contd...
Through the JV, Roca expected to gain access to the growing Indian sanitaryware
market. PR was expected to benefit significantly through Roca's superior
technology, improved manufacturing practices, better product offerings, and
international presence. While Roca was set to gain market share in India, it
also had plans to use the JV's plants to manufacture products for export to
other countries. However, the JV was expected to face strong competition from
foreign as well as domestic competitors.
Background Note
ROCA
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In 1917, Compañía Roca Radiadores, S.A. (Roca Radiadores) was founded by four
brothers of the Roca family. The company, headquartered at Barcelona, Spain,
initially manufactured cast-iron radiators and went on to dominate this market.
Soon, it diversified and expanded its product range. In 1925, Roca Radiadores
entered the bathroom accessories market with the manufacture and sale of
cast-iron bathtubs. It launched a range of sanitary fixtures in 1936, and
tapware in 1954. It pioneered the development of products that reduced water
usage. In 1963, Roca Radiadores entered the air conditioning market through a
subsidiary, after obtaining a manufacturing license from York International Corp6.
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The subsidiary, called Clima Roca York, manufactured
residential and commercial air conditioning products in Spain and marketed them
throughout Western Europe.
Roca Radiadores was later renamed Roca Corporacion Empresarial, S.A (Roca). With
the introduction of a range of wall and floor ceramic tiles in 1980 (through a
subsidiary, Roca Cerámica) Roca became a supplier of the full range of bathroom
products.
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The products offered by Roca varied from
sophisticated water massage systems to the simplest accessories like
shower trays and shower screens. Roca established factories and
subsidiaries in Portugal, Latin America, the UK, Morocco, and Turkey. In
1994, York International Corp. acquired a 50% stake in Clima Roca York.
In 1999, Roca acquired Keramik Holding AG Laufen (Laufen) of Switzerland
for US$ 272 million. Laufen was a US$ 700 million manufacturer of
sanitaryware and ceramic tiles, and was also the holding company for
Laufen USA7. Laufen also had a
presence in Europe and Brazil. Roca now had operations in 16 countries
and became the world's second largest bathroom products group, behind
American Standard8. |
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