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BANGALORE, INDIA -- Large global pipe maker Aliaxis SA has bought a majority stake in one of India's largest plastic pipe and fittings makers, Ashirvad Pipes Pvt. Ltd., expanding its business in the fast-growing Indian market.
Terms were not disclosed but the companies said in a Feb. 20 announcement that the Poddar family, which founded Bangalore-based Ashirvad Pipes in 1998, will retain a significant ownership stake and will run the joint venture.
"We are very pleased to acquire a majority stake in one of the leading Indian plastic pipe and fittings players," said Yves Mertens, CEO of Brussels-based Aliaxis Group. "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, know how, product expertise and broad product range."
Ashirvad expects to achieve sales of 1,000 crore rupees (US$186.3 million) in the year ending March 31, the statement said.
The company has production capacity of 70,000 metric tons a year, with more than 2,000 employees and a network of 1,200 distributors and 14,000 dealers.
"With this joint venture we will be able to take Ashirvad to the next level in terms of range of quality products and technologies," said Ashirvad co-founder Pawan Poddar. "By partnering with Aliaxis, we believe we are one step closer to realizing our ambitions of becoming the strongest building and sanitary products manufacturer in the country and at the same time becoming a household name."
Ashirvad mainly manufactures PVC pipes and fittings in the building, plumbing and agricultural markets. It also developed PVC column pipes that are used in submersible boreholes to a depth of 1,000 feet.
On its website the company said it was planning to open a factory last year to expand into the soil, waste and rainwater pipe and fittings market.
The companies said the deal is subject to regulatory approvals and is expected to close in the first quarter 2013.