Roca Parryware aims for sharp sales growth in 2021 amid cost pressures

    Kolkata, Jun 7 (PTI) Bathroom and sanitary ware major
Roca Parryware on Monday said it expects a sharp spurt in
demand beginning this month and July with easing of lockdown
and Covid second wave losing steam.
    The company said it is optimistic to log a 25 per cent
jump in revenue to Rs 1,600 crore.
    The company committed investments of Rs 50 crore in
2021 to modernise factories and eyes for acquisitions in
faucets and plastics segment, a top company official said.
    In the current takeoff after a lull in May due to
strict re-imposition of lockdowns across markets, the large
players will reap greater benefits as the current turmoil is
estimated to have wiped out about 30 per cent of small and
tiny players, officials said.
    "As a company, Roca Parryware is ready for the second
helicopter take-off during June-July 2021. All our eight
factories continue to run at full capacity. We are building
good inventory. Our order book is very healthy at the current
levels," Roca Parryware India managing director K E
Ranganathan told PTI.
    With a big boost to the housing sector by the
government and the resumption of construction activities, the
bathroom and sanitary ware sector is poised for steady growth,
experts said.
    "We have more than two months of retail orders and 18
months of institutional orders on hand to deliver. We see good
traction as many construction sites are allowed to continue
work even during lockdown. The demand surge on this segment is
very much visible," India marketing head R Sreenivasan said.
    He said though the company has not yet passed on the
cost inflationary pressure to consumers that impacted
profitability.
    "All input materials like brass metal, plastics, PVC
resins, fuel like gas, LPG and diesel have all gone up by 40-
50 per cent levels in the last 3 to 4 months. If things worsen
then price hike looks inevitable in the near future,"
Ranganathan said.
    Parryware brand contributes approximately 65 per cent
of our overall revenue and continues to be the power brand for
the company.
    With five brands namely Armani Roca, Laufen (Swiss),
Roca, Parryware and Johnson Pedder Roca India is the top
player in the sanitaryware organized sector market in India,
the company claimed.
    "We have done pretty well so far from January to May
2021 with 60 per cent growth and assuming the lockdowns get
lifted soon, we are confident of recording a robust 25 per
cent growth in revenue over last year 2020 to Rs 1,600 crore,"
the India head of Spanish multinational Roca said. PTI BSM
RG RG

(This story has not been edited by THE WEEK and is auto-generated from PTI)