Hot Pursuit
Supreme Industries said that it has entered into an agreement for acquiring the Indian Piping (building and infrastructure) business of Wavin Industries for an aggregate consideration of $30 million plus net working capital on the closing date.
Wavin Industries (Wavin India) is in the business of manufacturing piping systems under the brand Wavin and part of the Orbia Group. It manufactures PVC pipes & fittings, CPVC pipes & fittings, HDPE pipes, PPR pipes and other products in Building and Infrastructure segment. The turnover of Wavin India for the financial year 2023-24 was Rs 1,007.50 crore.
As per the terms of the agreement, Supreme Industries would acquire all tangible fixed assets, tools, moulds & dies, spare parts, all intangible fixed assets including trademarks & Intellectual property rights, all licences, approvals & permissions, contract for power & other utilities, all material contracts, orders, rate contracts in hand and employees of Wavin's Piping business.
Simultaneous to above acquisition, the company will have exclusive access to all existing technologies from the Netherlands-based parent firm Wavin B.V. and other new technologies to be developed during a period of 7 years for India and SAARC Countries.
Supreme Industries stated that the acquisition of Wavin India would result in increasing the capacity of the Piping Division by 73,000 M.T. per annum.
The acquisition will facilitate catering to districts/area of North and South India economically and efficiently.
Supreme Industries is engaged mainly in production of plastic products and operate in various product categories like Plastic piping system, cross laminated films & products, protective packaging products, industrial molded components, molded furniture, storage & material handling products, performance packaging films and composite LPG cylinders.
The company's consolidated net profit slipped 27.01% to Rs 186.97 crore in Q3 FY25 as against Rs 256.17 crore posted in Q3 FY24. Revenue from operations rose 2.48% year on year (YoY) to Rs 2,509.88 crore in the quarter ended 31 December 2024.
The scrip rose 0.93% to currently trade at Rs 3347 on the BSE.
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