Belgium’s Aliaxis Group S.A. is acquiring majority stake in Bangalore-based plastic pipe manufacturer Ashirvad Pipes Pvt Ltd and will subsequently form a joint venture. Although the deal value was not disclosed, sources familiar with the development pegged the deal size at Rs 800 crore or $148 million. The deal is subject to various conditions including regulatory approvals, and is expected to be closed before the end of the first quarter of 2013.
Veda Corporate Advisors advised Ashirvad on the deal and BNP Paribas was the banker to Aliaxis.
Aliaxis, which has revenues of over €2.2 billion, is a manufacturer and distributor of plastic fluid handling systems. Recently, it has also completed acquisitions in South Africa and Chile.
The JV will be led by the Poddars (founders of Ashirvad Pipes), along with its existing management team, and will continue to do business in India under the Ashirvad brand. It will also expand Ashirvad’s product offerings for the building and sanitary segments in India and work to strengthen its market position across the country.
Founded in 1998 by L.N. Poddar’s three sons – Pawan, Deepak and Vikas – Ashirvad Pipes offers products and solutions for building, plumbing and agriculture markets, and has a network of 1,200 distributors and 14,000 dealers. It is a licensee of Warren Buffet’s Berkshire Hathway-owned Lubrizol Corporation Inc in India. The company has an installed capacity of 48,000 TPA for PVC and UPVC pipes and 8,000 TPA for SWR pipes.
Ashirvad has been growing at a fairly fast clip with revenues increasing from Rs 100 crore in 2008 to Rs 610 crore in 2012. The company is expecting to reach revenues of Rs 1,000 crore in 2013.
“The joint venture will give Aliaxis significant exposure to the Indian building and sanitary market, and will allow Ashirvad to access Aliaxis’ global manufacturing network, knowhow, product expertise and broad product range for the benefit of its customers, distributors, dealers and the entire construction community,” said Yves Mertens, CEO of the Aliaxis Group.
“With this joint venture, we will be able to take Ashirvad to the next level in terms of range of quality products and technologies – building upon the world class manufacturing experience of Aliaxis,” said Pawan Poddar, co-founder of Ashirvad Pipes.
Aliaxis Group is a leading global manufacturer and distributor of plastic fluid handling systems. The firm has brands such as Durman, FIP, FRIATEC, Ipex, Marley and Nicoll. It has presence in more than 40 countries and claims to have net sales of €2,235 million in 2011.
(Edited by Sanghamitra Mandal)
