Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
February 12, 2015 01:00 AM

India's Vectus wins equity investment

Steve Toloken
Assistant Managing Editor
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Vectus Industries Ltd.
    Vectus Industries Ltd. will be able to expand production of its blow molded and rotomolded water and sewer infrastructure systems, such as manhole openings.

    Indian plastics processor Vectus Industries Ltd. is using $16.7 million in private equity investment to dramatically expand its manufacturing capacity to meet growing demand for water infrastructure like tanks and pipes.

    The Noida-based firm said the investment from Creador II LLC, a Mauritius-based private equity firm, will help it double capacity for PVC pipes in existing extrusion plants and add new factories for its blow molded and rotomolded water tanks.

    “The demand is coming from the villages and rural areas now, it's not just restricted to the cities,” said Managing Director Ashish Baheti. “We've been growing at the rate of 30 to 35 percent per annum. That's why we got the investment.”

    Those new factories and expansions at existing facilities will give it capacity for 2,000 metric tons a month of plastic pipe, and will add localized production capacity for above-ground water tanks in southern India in Tamil Nadu and in northern India in Jammu, he said.

    Vectus has about $80 million in annual revenue, and its products are distributed at 4,000 locations in India.

    Baheti disclosed details of the capacity expansions in an interview on the sidelines of the India-based Society for Asian Rotomoulders conference Feb. 2 in New Delhi, where he gave a presentation.

    As well, six months ago the company launched into another business, opening a factory in Karnataka to make underground manhole inspection stations and underground water storage tanks with rotomolding.

    Vectus struck a technology partnership for that factory with Turkish rotomolder Floteks, which developed the processes.

    Baheti told the conference delegates that manufacturing for underground tanks and water infrastructure has much more demanding safety and performance requirements than above ground tanks, so the company sought out Floteks, in Bursa, Turkey, as a partner.

    He said the underground market is potentially as lucrative as the above ground tank business, which is a major market for India's rotomolding companies.

    “Some people estimate the size of underground water storage tanks is the same size as the above ground tanks,” he said in a speech at the conference. “And most of the underground tanks are made of concrete.  Underground tanks are required for environmental reasons.”

    As well, he said most manhole inspection stations are currently made from brick or precast concrete, but with the building of new cities and extension of existing infrastructure, there's a lot of room for plastics.

    “There is a huge untapped market in India,” he said.

    The manholes are being made to meet the EN 13598-2 standard, which is used in that application worldwide.

    Vectus currently has 12 factories around India with 2,000 employees, along with joint venture blow molding plant in Kenya it set up in 2013. It said it was the first company in India to begin manufacturing blow molded above ground water tanks, in 2010.

    The companies announced the Creador investment in mid-2014, which Baheti said gave it a minority share in Vectus.

    Creador said it's a private equity fund for Southeast Asia and India, and made the investment because Vectus is the world's largest manufacturer of blow molded water tanks and the only Iarge Indian company focused on plastic water tanks and plastic pipes.

    It said market demand is large because most Indian cities receive water for only two to eight hours a day, so local storage capacity is crucial.

    Vectus's blow molded tanks have design advantages, and the company is well positioned to take advantage of India's switch from steel water pipes to plastic, the investment firm said.

    “Creador is delighted to have this opportunity to partner with Ashish [Baheti] and Atul [Ladha] in shaping Vectus Industries' next phase of growth,” said Creador founder and CEO Brahmal Vasudevan, in a statement. “Both of them are passionate entrepreneurs who have developed Vectus Industries into a leading player in the water tanks and plastic pipes space with a broad range of products, strong brand and excellent distribution.”

    RECOMMENDED FOR YOU
    Tooling focus gives Berry another avenue for growth
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    PVC feedstock in train derailment prompts evacuation in Ohio
    2
    Material Insights: Resin prices rise, nonmarket correction for PE
    3
    Illinois AG sues 14 firms over PFAS contamination
    4
    Prices on the rise for PP, PVC
    5
    This is the year the reality of plastics EPR arrives in the US
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified