Addressing the media here on Friday, Parryware Roca deputy managing director Emilio Salazar said, we are looking at companies that would offer good synergies so that Parryware Roca becomes the market leader in all the segments. "Size of the potential target company does not matter for us."

The Rs300-crore turnover Parryware Roca has four plants in the country, two in Tamil Nadu at Ranipet and Perundurai, and one each in Madhya Pradesh at Dewas and at Alwar in Rajasthan. While the Tamil Nadu plants serve the Southern markets, the plants in Madhya Pradesh and Rajasthan cater to the Western and Northern markets. "Ideally we would like to be present in the eastern region to serve that market and save on freight cost," said managing director K E Ranganathan.

However, there are not much of incentives for the company, special economic zones (SEZ), tax breaks-to set up a greenfield plant in the Eastern region.

Meanwhile, Parryware Roca has drawn up plans to invest €100 million in modernising its four plants and expanding their capacity. The investments will happen over a period of three years. "Both the partners will bring in the needed money," said Salazar. Post investment the company''s capacity will increase to six million pieces per year up from the current 4.5 million pieces.

The company will make the Roca brand ultra premium sanitaryware products at its Perundurai, and Alwar facilities. Last March Parryware Roca launched its third brand, Roca, in the premium brand category. The company has opened 15 Roca showrooms and 40 more such stores are on the anvil across the country.

According to Ranganathan, the market size for ultra premium sanitaryware is around Rs100 crore and is growing at 20-25 per cent rate. The Roca range of products is available in the price range of Rs10,000 to Rs80,000. The company''s other two brands are Parryware (premium segment) and Johnson Peddar (middle market).

In order to boost its institutional sales, Parryware Roca has signed a MoU with the Chennai based Rs108-crore turnover Vijay Shanthi Builders Ltd. As per the deal, Vijay Shanthi Builders will source its sanitaryware and tap needs from Parryware Roca.

According to Naresh Jain, executive director, Vijay Shanthi Builders, we hope to do a business of Rs50 crore in two years time with Parryware Roca. The deal covers Parryware Roca''s three brands.