CK Birla-promoted HIL Limited has acquired Topline brand of polyvinyl chloride (PVC) pipes and four companies associated with the brand for Rs. 265 crores, according to a stock exchange disclosure.
The companies include Topline Industries, Aditya Polytechnic, Aditya Industries and Sainath Polymers.
HIL Limited is a building materials company with a specialization in roofing. It has been expanding in the PVC pipes segment because it anticipates growing demand from the construction sector which is being driven by higher government spend on infrastructure and housing projects.
“We will nearly double our SKU (stock keeping unit) offerings. Access to patented technologies in electrofusion fittings and water tanks will position us among the top tier players. This also enhances HIL’s presence in significant government projects and secures JJM (Jal Jeevan Mission) approval across 12 states”, said Akshat Seth, chief executive officer, HIL Limited.
PVC pipes are used in plumbing, sewage and drainage systems, drinking water distribution, irrigation systems, chemical handling, fume, exhaust and ventilation ducts.
HIL Limited sells pipes and fittings under the brand Birla HIL. It has a subsidiary in Germany and manufacturing activities in 25 locations across Europe and India.
“This acquisition is a significant step towards HIL’s commitment to further accelerate its fast-growing pipes and fittings business in the estimated ₹55,000 crore Indian PVC pipes and fittings market”, HIL Limited said in its disclosure.
The acquisition is expected to bring a complementary portfolio of products, technologies and market footprint and help to significantly scale HIL’s production capacity and nearly double its revenue.
“Our ambition is to be five times our current size in this category by 2026”, said Avanti Birla, president strategy, HIL Limited.
The $2.9 billion CK Birla group is also the promoter of Orient Cement and Orient Paper and Industries Limited.
Source: Economic Times