Supreme Industries, is leading plastic products manufacturer, that has announced the acquisition of Wavin India’s piping business for $30 million. This move will strengthen Supreme’s position in the building and infrastructure sector.
Wavin India, a subsidiary of the Netherlands-based Orbia Group, specializes in high-quality piping solutions, including PVC, CPVC, HDPE, and PPR pipes.
What’s Included in the Deal?
- As per the agreement, Supreme Industries will acquire:
Tangible assets like tools, moulds, dies, and spare parts. - Intangible assets like trademarks, licenses, and intellectual property.
- Existing contracts for power, utilities, and materials.
- Wavin India’s workforce, ensuring smooth business operations.
Additionally, Supreme Industries has secured exclusive access to Wavin B.V.’s advanced piping technologies for seven years. This will enhance its product quality and strengthen its market presence in India and SAARC countries.
Boosting Production & Market Reach
With this acquisition, Supreme Industries will increase its piping production capacity by 73,000 metric tons per year. This expansion will help the company cater more efficiently to North and South Indian markets, reducing costs and improving supply chain efficiency.
This acquisition aligns with Supreme’s growth strategy, allowing it to leverage global technologies and expand its product offerings in the construction and industrial sectors.
Financial Performance & Market Impact
Despite its expansion, Supreme Industries reported a 27.01% drop in net profit in Q3 FY25, reaching Rs 186.97 crore from Rs 256.17 crore in Q3 FY24. However, revenue grew by 2.48% year-on-year to Rs 2,509.88 crore.
After announcing the deal, Supreme Industries’ stock price rose by 0.93%, reaching Rs 3,347 on the Bombay Stock Exchange (BSE), showing investor confidence.
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Future Growth & Market Outlook
This acquisition is a significant step for Supreme Industries, helping it expand its product range and market reach. By using Wavin B.V.’s cutting-edge technology, the company will gain a competitive edge in India’s growing infrastructure sector.
With increasing demand for high-quality piping solutions, this deal is expected to drive long-term growth and success for Supreme Industries. Industry experts will closely monitor how the company utilizes this opportunity to stay ahead in the plastic piping industry.
