Aimed at increasing its presence in the international market, home grown sanitary-ware major Jaquar has acquired 51 per cent stake in South Korean entity Joeyforlife for $1.2 million.
Besides growing inorganically, the company also said it is also expanding its domestic capacity by investing Rs 150 crore in a green-field project in Bhiwadi in Rajasthan.
The company said the new plant will go stream by September 2017.
“We are currently present in almost all aspects of the sanitary ware business. Joeyforlife has expertise in shower fixtures besides a significant presence in the international market. We saw synergy in the acquisition as it would help to ramp up our bathing solution business,” Rajesh Mehra, Director and Promoter, Jaquar and Company Pvt Ltd told Business Line.
Jaquar exports sanitary ware products to 30 international destinations. Mehra said that the acquisition will help it to proliferate its business in South East Asian markets. “We have presence in West Asia and African markets. We have started to look for opportunity in Europe,” he added.
The day-to-day management would be run by Kiho Ha, CEO, Joeyforlife.
Speaking about the sanitary ware industry, Mehra said Jaquar has presence in all segments from value to high end through its range of products. “We have Escco which is the mass market brand, Jaquar in the mid-price and Artize in the high end segment,” he said.
The company sells its products through multi-brand retailers. “We have 21 orientation points for customers. These provide touch and feel experience but there are no transactions happening,” he added.
Mehra said Jaquar had reported a turnover of Rs 2,337 crore on March 2016. “We expecting turnover of Rs 3,000 crore in 2016-17,” he added.
Jaquar competes with players such as Parryware, Hinddware and Cera in the sanitaryware category. The sanitaryware market is estimated at ₹10,000 crore as per various reports.
The sanitary ware industry that makes up nearly 40 per cent of the overall bath and wash room sector has seen phenomenal change along with the high growth numbers.