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.

The Parryware brand is ranked No 9 globally in the bathroom products market.

Currently, Parryware Roca has four manufacturing facilities – two in Tamil Nadu, one each in Madhya Pradesh and Rajasthan.

Vellyayan, the current chairman of Parryware Roca, will continue as its chairman, while E Ranganathan, managing director of the joint venture company, will revert to the Murugappa Group. Emillio Salazar, its current deputy managing director, will take over from Ranganathan.

The acquisition will give Roca access to four factories which makes sanitaryware and bathroom fittings, besides 50 showrooms across 30 cities in the country. 

Parryware Roca reported a 25 per cent year-on-year growth with a turnover of around Rs360 crore in 2007-08.