Socioeconomic status:

Following the rupee’s sharp depreciation, the Government’s structural measures to revive investment and promote exports had a positive impact in the second half of the year, with weak growth recovery. Economic development has also been affected by the country’s political paralysis due to the elections held during the second quarter of 2014.

Business developments and prospects:

In the Group’s consolidated results, India has been one of the markets most affected by the depreciation of the domestic currency against the euro. Sales are up 3% in the local currency, which continues the positive trend in a growing market. To meet the demand in the country’s north we have pushed forward with a new phase in the expansion of the sanitary ware factory in Dewas, which will reach a capacity of 2.4 million pieces per year in June 2014. We have maintained a strong strategy for launching new products — especially in faucets — to cover as many market segments as possible, with 30% new item numbers in 2013.

Contracts awarded include 2,000 full Armani/Roca collection baths at the Bombay World Towers, the world’s tallest residential complex. We have also supplied Roca and Parryware products to about 90 hotels.

Relevant facts:

• In 2013 we completed a new phase in the Dewas plant expansion project, which includes a new tunnel kiln and fifty new diecast lines
• Participation in the Acetech Mumbai fair
• Roca and Parryware TV and press campaigns
• Road show with new Parryware products in eight cities (Bengaluru, Chandigarh, Delhi, Chennai, Lucknow, Hyderabad, Kochi and Kolkata), very well received by distributors and architects