Bathroom fittings manufacturer Grohe keeps faith in Kingdom
Grohe Group, the world's leading provider of high-quality bathroom fittings, has reiterated its commitment to continued investment in Thailand along with developing top-class and innovative products to serve the Thai, Asean and elsewhere.
The company’s Asia Pacific Operations president Bijoy Mohan said that Thailand remained an important production hub for the group, particularly in light of the upcoming Asean Economic Community, which would transform Asean into a highly competitive economic region.
Mohan added that the new partnership between Lixil Corporation, which recently acquired shares in Grohe, and the group was a union of strong brands that represented top quality and innovative technologies, bringing in significant growth opportunities.
In January 2014, Lixil Corporation and the Development Bank of Japan acquired an 87.5 per cent stake in Grohe, the largest investment ever made in Germany by a Japanese company.
It marked a significant step for Lixil on its way to becoming the global market leader in the building materials and housing equipment industry.
“Grohe remains independent within the Lixil Group,” Mohan said, reiterating that Grohe will leverage on this new partnership to bring value to consumers in Thailand.
The company will maximise this positive synergy to implement its plan for long term, sustainable and profitable growth, while strengthening its distribution network and continuing to deliver innovative and technologically advanced products.
Grohe stands for German quality, engineering and award-winning design and responsible sustainability.
The group’s brands are leaders in global growth markets, well known throughout the world and trusted by customers. Working in the spirit of mutuality, both Lixil and Grohe will strengthen their product offerings and rely on each other’s extensive distribution network to become a leader in the global sanitary industry.
Grohe’s manufacturing plant in Thailand, Grohe Siam, is located in Klaeng, Rayong. It is a joint venture between the Grohe and a group of Thai partners.
Thailand is one of Grohe’s nine production plants worldwide. The plant is a fully integrated production and assembly plant, manufacturing high-quality faucets serving markets worldwide. Approximately 115,000 pieces are manufactured a week, most of which are exported mainly to Asean markets, India, Europe and the US.
In 2013, the Grohe Group posted sales growth in all regions and all product categories.
Europe is the group’s most important region, accounting for 50 per cent of total sales. The second largest region is Asia, making up 33 per cent.
The Middle East and Africa accounted for 10 per cent, with 8 per cent growth, while the Americas achieved sales growth of 19 per cent, making up 7 per cent of total sales.
The group closed financial year 2013 with sales of 1.45 billion euros (Bt62 billion), according to preliminary results, with 85 per cent of the sales revenue generated outside Germany.
Grohe (Thailand) has a 35 per cent market share of the premium sanitary fittings market, amounting to Bt900 million to Bt1 billion.
It’s distribution channel is split between high-end projects (42 per cent) and retail (58 per cent) and these includes luxury hotels and medical facilities such as the Marriott International group of hotels, W Hotel, Bumrungrad Hospital and several projects under leading real estate property developers.
They include Major Development and Charn Issara Development.
Grohe’s products are also available through over 50 dealers nationwide, including showrooms of their main dealer, Boonthavorn.
