Muruguppa Group offloads Parryware Rocca stake to JV partner for Rs705 crore

25 April 2008

The Murugappa Group has exited the sanitaryware business with the sale of 47 per cent equity in its 50:50 joint venture, Parryware Roca, to the foreign partner, Roca Sanitario of Spain, for €112 million (Rs705 crore).

The board of directors yesterday approved the sale of 47 per cent stake of the 50 per cent it holds in the equal join venture to its partner Roca Sanitario of Spain for €112 million.

The balance three per cent will be offloaded at a later date. The transaction is subject to the Foreign Investment Promotion Board's approval, it added.

If the deal goes through, the Spanish partner will get 97 per cent in Chennai-based Parryware Roca Pvt Ltd.

Parryware Roca was set up by EID Parry (India) and Spain-based Roca Sanitario in May 2006. The company manufactures various bathroom fittings, including sanitaryware, seat covers, plastic cisterns, bathtubs, kitchen sinks and electronic flushing systems.

Parryware claims to have a 46 per cent market share of the Rs450-crore organised sanitaryware market in the country. The total market is estimated at around Rs1,000 crore.