BWI: GROHE Surges Ahead with Sustainable Growth Strategy

Press release from Business Wire India
Source: Grohe India Pvt. Ltd. (GIPL)
Friday, May 17, 2013 12:09 PM IST (06:39 AM GMT)
Editors: General: Consumer interest, People; Business: Advertising, PR & marketing, Banking & financial services, Business services, Commodities & materials, Household & personal care products & services, Media & entertainment
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GROHE Surges Ahead with Sustainable Growth Strategy


New Delhi, Delhi, India, Friday, May 17, 2013 -- (Business Wire India) -- GROHE from Germany, the world's number 1 brand in sanitary fittings, shares its success in year 2012 with the GROHE Group's sustained growth trend which remains unbroken. With a double-digit percent rise in sales and earnings figures, the GROHE Group (GROHE and Joyou AG) attained its biggest increase yet. Year on year, Group sales have climbed just short of 21 percent to ?1,405 million. Even leaving Joyou out of account, GROHE notched up six percent with sales of ?1,082 million, as compared to ?1,020 million in the year before.

GROHE Group adjusted EBITDA rose by 18 percent to ?273 million and the annual financial statements showed liquidity of ?286 million. Excluding Joyou, GROHE's adjusted EBITDA stood at ?217 million, against ?206 million in 2011.

Renu Misra, VP & MD, GROHE India giving her insight on the Asian market says "The Asian market continues to grow in leaps and bounds, with 73 percent sales growth for the Group. This success is largely a result of the partnership with Joyou AG, the Chinese market leader, in which the GROHE Group now holds a 72 percent stake. In India we have come a long way as a result of our technological innovations and wish to continue the healthy growth as we introduce a host of products this year."

GROHE's dual brand strategy enables them to serve both the premium and mass premium markets. The company sees sizeable potential with the Joyou brand, not only in Asian growth markets but also in the European volume-market segment.

While implementing its global growth strategy, GROHE has been fortunate to be able to rely on the constructive support and partnership of its majority shareholders for nine years now. In light of this longstanding participation, a range of scenarios are also under consideration as part of the review of strategic options in cooperation with several banks. However, there are no definitive timelines at the moment.

About GROHE

The GROHE Group comprises Grohe AG, Hemer, Joyou AG, Hamburg, (fully consolidated since 1 July 2011) and other subsidiaries in foreign markets. Grohe AG is Europe's largest and the world's leading provider of sanitary fittings under one brand. As a global brand for sanitary products and systems, GROHE relies on its brand values quality, technology, design and responsibility in order to be able to offer "Pure Freude an Wasser". The GROHE Group employs some 9,000 people on average worldwide (including around 3,400 at Joyou). There are about 2,300 employees working at GROHE in Germany. In 2012, the GROHE Group generated consolidated sales of ?1,405 million. GROHE has six production plants, of which three are located outside Germany, namely in Portugal, Thailand and Canada. The company currently generates 85 percent of its sales outside Germany.

About GROHE India Pvt Ltd.(GIPL)

GROHE India Pvt Ltd. (GIPL) is a wholly owned subsidiary of GROHE AG and has completed five years of direct operations in India. In this time has acquired a significant position in the Indian market as one of the largest selling foreign brands. GROHE launched its second Indian 'GROHE Live! Centre' in Mumbai in February 2012. This centre is a great opportunity for people to come and experience the world of GROHE. Besides featuring the entire range of GROHE products, the Live! Centre also showcases the GROHE elements of Quality, Technology and Design.



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KEYWORDS
CONSUMER, PEOPLE, MARKETING, BANKING, BUSINESS SERVICES, COMMODITIES, HOUSEHOLD, MEDIA

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