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 percent 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 percent 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 percent 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 percent of the group's 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 percent growth and assuming the lockdowns get lifted soon, we are confident of recording a robust 25 percent growth in revenue over last year 2020 to Rs 1,600 crore," the India head of Spanish multinational Roca said.