and shareholders, charles r.

grohe, chair of friedrich grohe's advisory board and

majority shareholder, announced that he and the rost family were selling their
stakes in the company. a few weeks later, the european investment firm bc
partners won out in the auction organized by credit suisse first boston, over
counter bidders including american equity house kohlberg kravis roberts and
u.s. plumbing supplier kohler. bc partners acquired all common shares from the
two families, representing a 51 percent stake in friedrich grohe, and these shares
were transferred to grohe holding gmbh. bc partners went on to buy back all but
0.4 percent of the preferred stock that was publicly traded. on march 29, 2000,
the public trading of friedrich grohe shares ceased. ultimately, the company was
transformed into a private entity--friedrich grohe ag & co. kg.

during the next two years, measures were taken to strengthen friedrich grohe's
position in the world market. the united states had become the company's most
important market outside of germany, generating dm 200 million--or about
$160 million--in sales in 2000. the company also invested in new subsidiaries in
eastern europe, specifically poland and russia, as well as in asia, where friedrich
grohe was planning to open a new production plant in shanghai and to cooperate
with a chinese tile manufacturer. on the internal front the company reorganized
its sales divisions and pushed its designer line of fixtures with higher profit
margins. with a world market share of roughly 10 percent in 2001, friedrich
grohe aimed at becoming the global leader in bathroom fixtures and sanitary
installations.

3. 4-p’s of grohe india

grohe india pvt. ltd. is a fully subsidiary of friedrich grohe ag of germany.

grohe has entered into the indian market in year 2005. it has mulled a joint
venture with indian sanitary giant hindustan sanitaryware india ltd. (hsil). hsil
better known as hindware has helped german incumbent to use its experience.
grohe in india is targeting niche market of luxury highly sophisticated and
technologically advanced sanitary ware market which if experts are believed, is
increasing at a faster pace. marketing mix of grohe was interesting to study
because it has product ranging from 2,000 to 20,000 inr. also its distribution
channel is very effective and considered best in industry.

product mix

grohe claims to have products of international standards. its product mix length
dwells among faucets, showers, cisterns, thermostats, and unique customized
solutions. they have broadly classified their appliances into bathroom & kitchen
products. although some of products are cross functional and included both in
verticals.