Bath fittings and sanitary ware major Jaquar Group has acquired a majority stake in the South Korea-based Joeyforlife by investing USD 1.2 million, as part of efforts to expand its global footprint.
Jaquar, which has acquired 51 percent stake in luxury shower maker Joeyforlife, said the move would help it to expand its business in South Korea and South East Asian countries.
"It would reinforce our technical strength and secondly Joeyforlife, which is working in far east region aggressively...we would get an access to this quite potential market of the South East Asian region," Jaquar Group Director and Promoter Rajesh Mehra told PTI.
On being asked about the synergy, he said: "Joeyforlife is into high-end products as shower and faucet and Jaquar has a complete portfolio of bathing solutions. Now pooling them together, we can enhance our portfolio." Mehra further said the management of Joeyforlife would continue even after the acquisition of stake and there would be no change. Joeyforlife would remain an independent entity, he added.
"The day-to-day management would be run by Kiho Ha, CEO, Joeyforlife and there would be no change," he added.
Mehra said: "We have been working together for the last four years and have a very strong association. Joeyforlife has strong R&D set up and together we have designed and developed products in four years of journey," he said adding that the products were accepted very well in India.
At present, 70 percent of Joeyforlife's manufacturing capacity is dedicated to Jaquar only.
On investments, Mehra said: "Initially as a capital, we have invested USD 1.2 million to begin with and then we would see. It was through our internal accruals." When asked if the company would introduce the brand Joeyforlife to India, Mehra said: "There is no need to present two different identities.... The idea is to continue with the same brands in those respective markets." Jaquar Group, which is having around 30 percent year on year growth, is expecting to touch a turnover of Rs 3,000 crore in FY 2016-17.
The company, which has started exports couple of years before, is now scouting for markets in Europe. It has a good presence in the Middle East and African markets.
At present, export contributes around 5 percent to Jaquar's turnover and it expects it to be doubled in terms of ratio, in the next four years.
"India would continue to be the focus of the company, but we have a vision to make Jaquar a global brand and we are now giving equal amount of focus on the overseas market. So we are expecting that in the next 3-4 years over 10 percent contribution would come from exports.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
