Supreme Industries , India's largest plastic pipe manufacturer, has successfully completed the acquisition of Wavin India's pipes and fittings business for ₹250 crore. This strategic move, which includes a long-term technology partnership with Orbia, marks a significant expansion of Supreme Industries' presence in the pipes and fittings sector.

Acquisition Details

The deal involves the purchase of Orbia Building & Infrastructure's (Wavin) pipes and fittings business in India for USD 30 million (approximately ₹250 crore), plus net working capital adjustments. As part of the agreement, Supreme Industries has acquired:

• Full ownership of Orbia Wavin's operational manufacturing facilities in India, located at:

  • Banmore, Madhya Pradesh
  • Hyderabad, Telangana
  • Neemrana, Rajasthan

• Exclusive access to Orbia Wavin's proprietary solutions for drinking water, wastewater, and stormwater management across India and SAARC countries.

Technology Partnership

The acquisition is complemented by a long-term technology licensing agreement, granting Supreme Industries access to Orbia Wavin's full portfolio of advanced water management solutions. This agreement includes additional fixed payments and royalties, ensuring a continued flow of innovative technologies to the Indian market.

Strategic Impact

M.P. Taparia, Managing Director of Supreme Industries, commented on the acquisition: "With this acquisition and agreement now complete, we are well-positioned to accelerate the next phase of growth for Supreme. Orbia Wavin's proven technologies and global expertise complement our strengths in manufacturing and market reach."

The deal is expected to have several strategic benefits:

1. Expansion of Supreme Industries' manufacturing capabilities, bringing its total to 33 manufacturing units.
2. Enhanced product portfolio with access to Orbia Wavin's advanced water management solutions.
3. Strengthened position in residential, commercial, industrial, and agricultural water infrastructure applications.
4. Accelerated growth potential in India's rapidly developing infrastructure sector.

Continuity and Future Plans

As part of the transition, all India-based operations and employees of Orbia Wavin have been transferred to Supreme Industries, ensuring business continuity. Meanwhile, Orbia Wavin will continue to operate and invest in its Technology & Innovation Center in India, focusing on developing next-generation water management solutions.

This acquisition aligns with Supreme Industries' expansion strategy and positions the company to play a crucial role in addressing India's growing water management needs. With the combined strengths of Supreme's market reach and Orbia Wavin's technological expertise, the company is set to contribute significantly to India's infrastructure development in the coming years.

Supreme Industries , a leading plastic products manufacturer, reported mixed results for the first quarter, with volume growth offset by revenue and profit declines. Despite a challenging quarter, the company has raised its volume growth guidance for the full year, citing improved demand outlook and the integration of its recent acquisition, Wavin Industries.

Q1 Performance Highlights

• Plastic goods sales volume grew 6% to 183,793 tons
• Net product turnover declined 1% to Rs. 2,579.00 crores
• Consolidated profit after tax dropped 26% to Rs. 202.00 crores
• Value-added products contributed Rs. 933.00 crores in revenue

The company attributed the profit decline to inventory losses resulting from falling polymer prices and the early onset of monsoon, which impacted the agricultural piping business.

Segment-wise Performance

Strategic Developments

Supreme Industries completed the acquisition of Wavin Industries for Rs. 310.00 crores, which is expected to be finalized by July 31, 2025. The company has also entered into a technology licensing agreement with Wavin B.V. Netherlands, gaining access to advanced technologies for plastic piping systems in building and infrastructure segments.

Revised Guidance and Outlook

Management has revised its volume growth guidance upward:

• Plastic piping division: 15-17% (up from previous 12-14%)
• Overall company: 14-15%

The company expects EBITDA margins of 14.5-15.5% for the full year.

Expansion Plans

Supreme Industries plans to invest Rs. 1,350.00 crores in capital expenditure to expand its plastic piping capacity to 1 million tons by March 2026. This includes the integration of Wavin's 71,000-ton capacity.

New Product Initiatives

• Launch of polypropylene-based silent pipe system on August 18, 2025
• Introduction of a new range of showers based on PTMT (Polyoxymethylene) material in the coming months
• Commencement of trial production for profile windows in the second quarter

Market Outlook

The company remains optimistic about demand growth in both housing and agriculture segments, citing:

• Bountiful rainfall in most parts of the country
• Improved affordability of polymer prices
• Government commitment to infrastructure spending

M. P. Taparia, Managing Director of Supreme Industries, commented, "We anticipate that the growth number in volume that we told you, we will achieve. The demand for agricultural pipes will be better than last year, despite the challenges faced in May and June."

Challenges and Opportunities

While the company faced headwinds in Q1 due to early monsoon and inventory losses, management expects the situation to improve in the coming quarters. The acquisition of Wavin and the technology licensing agreement are expected to enhance Supreme Industries' product offerings and market reach.

The company is also making inroads into new segments such as gas piping systems and composite LPG cylinders, which could provide additional growth avenues in the future.

As Supreme Industries continues to expand its capacity and product range, it remains focused on increasing the share of value-added products across all its divisions to drive growth and profitability in the coming years.