Introduction
As a part of a strategic drive to enhance its presence in the piping business, Supreme Industries has acquired Wavin India’s piping business, part of the Orbia Group, for $30 million plus net working capital as on the date of closing. The acquisition is expected to significantly enhance Supreme Industries’ market position in the SAARC countries and the Indian building and infrastructure segment.
Concerning the Acquisition
The deal includes:
- ✅ Tangible Fixed Assets – Molds, dies, spare parts, and manufacturing machines.
- ✅ Intangible Fixed Assets – Intellectual property rights, trademarks, and licences.
- ✅ Operating Resources – Power and utility agreements, material agreements, and orders in hand.
- ✅ Human Resources – Keeping Wavin India’s personnel in the piping business.
- ✅ Technology Access – Rights to existing and new technologies by Wavin B.V. in the Netherlands to be utilized in India and SAARC countries for seven years.
Impact on Supreme Industries
- Capacity Augmentation – The acquisition will increase Supreme Industries’ piping business production capacity by 73,000 M.T.
- Greater Penetration in the Markets – The acquisition will facilitate increased market reach in North and South India, better operational efficiency, and lower costs.
- Expansion in Product Line – Supreme Industries will manufacture PVC, CPVC, HDPE, and PPR pipes under the Wavin brand.
About Wavin India
Wavin India is one of the key players in the business of piping systems and offers a range of products employed in the construction of buildings and infrastructure. Wavin India reported a turnover of ₹1,007.50 crore during FY 2023-24. Wavin India has built a strong foothold in the Indian market. The business acquisition of Wavin by Supreme Industries is expected to increase Supreme’s leadership in the plastic piping business.
Supreme Industries: The Plastics Market Leader
Supreme Industries is a leading plastic products manufacturer in India, providing solutions in:
- Piping Systems made of plastic
- Cross Laminated Products and Films
- Protective packaging
- Industrial molded components
- Molded storage and furniture solutions
- Packaging films with performance
- Composite
Financial Situation and Future Prospects
Although there was a 27.01% decline in net profit to ₹186.97 crore in Q3 FY25, Supreme Industries posted a 2.48% year-on-year (YoY) increase in revenue to ₹2,509.88 crore. The Wavin piping business acquisition is expected to drive long-term top-line expansion by strengthening Supreme Industries’ scale and market presence.
Conclusion
The acquisition will position Supreme Industries as a leader in the plastic piping industry. The access to advanced European technology, improved production capabilities, and greater market presence will fuel the company’s growth in the future.
FAQs
- What is the value of Supreme Industries’ buyout of Wavin India’s piping business?
Supreme bought it out for $30 million plus net working capital. - What are the acquired assets?
Production facilities, equipment, moulds, dies, trademarks, intellectual property, and contracts. - How much will Supreme Industries’ piping business increase after the acquisition?
Production capacity will increase by 73,000 M.T. per year. - How will this acquisition influence Supreme Industries’ market presence?
It will increase Supreme’s presence in North and South India, expanding distribution and lowering costs. - What are Supreme Industries’ principal products? ?
Supreme sells PVC, CPVC, HDPE, PPR pipes, protective packaging, molded furniture, LPG cylinders, and so on. - Will Supreme Industries have access to Wavin’s technology?
Yes, the company will have exclusive rights to Wavin B.V.’s existing and upcoming technologies for seven years. - What was Supreme Industries’ Q3 FY25 performance financially?
Revenue grew 2.48% YoY to ₹2,509.88 crore, and net profit fell by 27.01%. - What is Wavin India’s parent company?
Wavin India is a part of the Orbia Group, a world leader in sustainable solutions. - Why is the acquisition strategic to Supreme Industries’ growth strategy?
The acquisition adds to its manufacturing capability, market presence, and product offerings, and enables long-term growth. - Where do I obtain additional news about Supreme Industries?
Monitor Supreme Industries’ website, stock exchange announcements, and news releases for the latest updates.
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