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Roca overcomes crisis brick

The benefit of Roca is consolidated in the last year

Tuesday 08 September, 2015

The centennial Bathroom equipment firm consolidates its profits after years of poor results and plant closures

The Spanish giant manufacturers of health breathe some relief. After years of getting timid gains, held its profit -53,000,000 of euros has consolidated in the last year. Apparently he has won the pulse of the crisis and its excessive attachment to the building that led to the controversial closure of two plants (the Alcala de Henares in Madrid and Alcala de Guadaira, in Seville) and the dismissal of 476 workers in 2013.

Roca overcomes crisis brick

The word that now flies over the offices of this veteran company about to celebrate 100 years is recovery. And optimism permeates the atmosphere guaranteed by an increase in their revenues of 4.7% and a turnover of 1,646 million euros, the highest turnover since 2008. "We are optimistic that the results for 2015," say sources entity, "but we have to see how they evolve important markets for us as Russia, China and Brazil."

And it is that internationalization has been a great ally in these new airs. The investments abroad reached, according to the 2014 report, 122 million euros, which have gone mainly to India, Malaysia, China and Brazil. "With the economic crisis," pointing to the same sources, "the company focused on the structuring of processes and functions in all its business scope to become a true global player." So healthcare giant, which currently chairs Javier Roca Hernandez has achieved "a significant improvement in its six core markets: Brazil, Spain, Russia, China, India and Switzerland, accounting for 61.5% of total turnover of the group" They say from the company.

The company took up as far as could the concept of resilience to adapt to the needs to meet the recovery in demand in domestic markets and help position their brands as integral suppliers of products for the bathroom space. "Where others saw diversification, concentration and Roca Group saw today are world leaders," says a company spokesman.

Examples of adaptation of the company to reach several markets where "Brazil just demand hot water, and cultural factor is that most employ the use of the shower; India prefer bathrooms with colorfully; ask the booming Asian electronics classes while in Europe you opt for practical designs for easy cleaning of the product, "explains the company.


But the group's survival has also gone through decisions as departments integrate design, marketing and production management. "This has been a leap in efficiency and effectiveness. We have reduced the time-to-market [time it takes a product from being conceived until it is for sale] markedly and, with the implementation of the system of industrial platforms and industrial network management, get production synergies, We unify standards and processes and significantly improve productivity. "

After two years without any acquisition, in 2014 the international expansion of Roca Group was 50 million euros to buy the company in Australia Gemini Industries. Other acquisitions -including importe- said companies have been in Norway (VVSMarketing) India (Espiem Plastics), Egypt (National Industrial & Trading and Gravena) and Spain (Industrias Cosmic). "In total, we have reached 172 million in investments and acquisitions, a figure that has doubled in 2014 over the previous year."

That is why the company has increased its debt by 18 million euros. "The renewal of the funding has been made in two sections," says the company in memory, "a loan of 275 million euros to six years and a revolving credit [revolving] for a maximum amount of 100 million euros to five or six years. "

After adjusting template group in Spain and the favorable conditions as the advertised studies BBVA Research report which anticipates that in the first five months of 2015 visas newly built housing rose by 28.2% yoy , Roca Business Corporation confirms the recovery in activity "by the momentum of reform and rehabilitation, which absorbed almost 80% of the sale of building materials in 2014".

With respect to new hires, company sources assert: "We are a growth company. It is imperative to continue incorporating professionals from different business areas because being an industrial multinational, a component highlight of our foundation is competitive supply capacity in proximity to large volumes. " They conclude: "The Spanish market will grow strongly in the medium term. At the time we decided to maintain a capacity exceeding market demand and production time seems to be giving us the reason. "

Bicephalic SIGNATURE

The Roca Group is a family-owned company managed by independent professionals from the seventies. The chairmanship alternates periodically between the current number one, Javier Roca Hernandez and Carlos Gomar. That is their strategy for survival since its birth in 1917 in Barcelona as manufacturers of radiators for domestic heating molten iron into one of the kings of concept bathroom.

Today the company has 74 plants in 18 countries and a presence in 135 markets. It has 12 business units (sanitary ware, taps, acrylic bathtubs, furniture, flat ceramics, accessories, hot casting, hot steel, plastics injection, screens, shower and toilet and solid surface) and employs 22,000 workers. In constant innovation, the firm is committed to designs by prestigious architects such as Bethlehem and Rafael Moneo, Herzog & de Meuron, Antonio Bullo or Giorgetto Giugiaro; and he works for responsible water consumption since its foundation We Are Water.

Source: EL PAÍS
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