Supreme Industries , a leading plastic products manufacturer in India, is anticipating a significant increase in PVC resin prices following the implementation of Anti-Dumping Duty (ADD) in the country. The company expects the prices to rise by ₹8.00-10.00 per kilogram, a development that could have substantial implications for its raw material costs and potentially impact its product pricing strategy.

Expected Price Increase

Supreme Industries has forecasted that the implementation of the Anti-Dumping Duty will lead to a price hike of ₹8.00-10.00 per kg for PVC resin in the Indian market. This increase is noteworthy, considering PVC resin is a crucial raw material for many of the company's products.

Impact on Raw Material Costs

The anticipated price rise is expected to directly affect Supreme Industries' raw material costs, particularly for its PVC-based products. PVC resin is a key component in the manufacturing of various plastic items, including pipes, fittings, and other construction materials that form a significant part of the company's product portfolio.

Anti-Dumping Duty Implementation

The impending implementation of the Anti-Dumping Duty is the primary factor behind the expected price increase. Anti-dumping duties are typically imposed to protect domestic industries from unfair competition by foreign manufacturers who sell their products at prices lower than their normal value in their home market.

Potential Implications

The price hike could potentially lead to:

1. Increased production costs for Supreme Industries
2. Possible adjustments in the pricing of their PVC-based products
3. A need for strategic planning to maintain competitiveness in the market

As one of India's prominent plastic products manufacturers, Supreme Industries' anticipation of this price increase highlights the broader implications of the Anti-Dumping Duty on the domestic plastic industry. The company's ability to navigate these changing market conditions will be crucial for maintaining its market position and financial performance in the coming months.

Investors and industry observers will likely be watching closely to see how Supreme Industries and other players in the plastic manufacturing sector respond to these evolving market dynamics.

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.