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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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


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.

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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6] York International Corp. was established in 1874 in York, Pennsylvania, USA. As of 2006, the company was the largest independent manufacturer of air conditioning, heating and ventilation systems, and industrial refrigeration equipment in the world.

7] Laufen USA consisted of Laufen Ceramic Tile, U.S. Ceramic Tile (USCT) and Laufen International Distribution Centers. All of them had combined annual sales of over US$ 150 million in 1999.

8] American Standard was the brand name under which the American Standard Group of companies sold their sanitaryware products. The group, established in 1872, has significant presence in air-conditioning, bathroom and kitchen accessories, and vehicle control systems. In 1999, after it purchased UK manufacturer, Armitage Shanks, it became the largest sanitaryware manufacturer in the world.


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