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The Supreme Industries Ltd, India’s leading plastics product manufacturer, has acquired the specialized polyvinyl chloride (PVC) pipes producer Parvati Agro Plast, at an undisclosed sum, marking its entry into the molecularly-oriented PVC (PVC-O) manufacturing business. This acquisition will allow Supreme Industries to expand its presence in the PVC-O product solutions, a high-potential sector in the pipe and fitting segment.

With The Supreme Industries Ltd taking charge of the manufacturing units/business with immediate effect, Parvati Agro Plast will become the 29th production facility under the Supreme brand. Spread over an area of approximately 13.48 acres of land, Parvati Agro Plast has an aggregate installed capacity of 36,000 tonnes per annum comprising PVC pipes of 15,000 tonnes per annum, high-density polyethylene (HDPE) pipes of 18,000 tonnes per annum, and PVC-O pipes to the tune of 3,000 tonnes per annum at its unit in Sangli, Maharashtra.

Founded in 1993, Parvati Group is one of the leading plastic pipe manufacturing companies, with a polymer handling capacity of 20,000 tonnes per annum. A technically sound manufacturing company, Parvati Agro Plast produces a full range of PVC-O pipes, HDPE pipes, rigid PVC pipes, and DWC pipes with thicknesses ranging from 20 to 500 mm. Parvati’s pipes are used in water supply schemes, sanitation projects, irrigation, and various other applications. The company has a presence in Maharashtra, Karnataka, Gujarat, Goa, and several other states.

Post-acquisition of Parvati Agro Plast, The Supreme Industries will have a total capacity for plastic piping systems products t of 780,000 tonnes per annum by the end of the financial year 2023-24. The company is a leader in plastics piping systems and boasts the largest product portfolio, which is continuously expanding. Presently, Supreme Industries offers 38 piping systems that provide end-to-end solutions for varied applications.

Encouraged by the acquisition, M P Taparia, Managing Director of The Supreme Industries Ltd, stated, “This milestone strengthens the company’s presence in the bordering districts of Maharashtra and northern Karnataka. We believe that this acquisition will enable the company’s products to reach more areas and customers in an economical and efficient manner. Adding PVC-O manufacturing technology to our portfolio and entering this segment will pave the way for faster growth and help us achieve our goal of adding more value-added products to our offerings.”

According to Taparia, Supreme Industries will invest about Rs 200 crore to further expand its PVC-O capacity over the next two to three years. The company envisages achieving annual revenues of more than Rs 500 crores from this facility after the proposed expansion is completed. Furthermore, the company sees a promising business potential for PVC-O in the Indian market.

Rs 160-crore capex for window and door project
Supreme Industries has recently embarked on a project to manufacture PVC windows and doors at its newly acquired 32-acre site near Kanpur in Uttar Pradesh. The initial capacity planned will be 10,000 tonnes per annum. It intends to sell window profiles and complete windows from this site. Later, it will put up window-making facilities at several of its manufacturing sites. The envisaged investment in this project will be about Rs 160 crore and after attaining full capacity, the company may add additional turnover of about Rs 350 crores annually in this segment.

The Supreme Industries Ltd is India's leading plastics product manufacturer, offering a wide and comprehensive range of plastic products. The company operates in various product categories viz. plastic piping systems, cross-laminated films and products, protective packaging products, industrial moulded components, moulded furniture, storage, and material handling products, performance packaging films, and composite liquefied petroleum gas (LPG) cylinders.

The company has 29 technologically advanced manufacturing facilities located at various places spread across the country. The company has built an excellent relationship with its distributors and provides orientation to them, in order to deliver proper service to ultimate customers. While announcing its April-June quarterly result, Taparia announced a total capital expenditure (capex) in excess of Rs 750 crore for the current financial year including carry-forward commitments of the previous year. The entire capex is proposed to be funded from the internal accruals.

Product segments
The Supreme Industries Ltd serves a wide range of customers across various sectors. Some of the key customer segments for the company include construction, packaging, automotive, furniture, capital goods, agriculture, and irrigation. The company caters to the construction industry by providing a range of construction and infrastructure-related products such as pipes, bathroom fittings, septic tanks, valves, etc. It supplies packaging solutions to customers in industries such as FMCG (Fast Moving Consumer Goods), pharmaceuticals, chemicals, and others. These solutions include packaging films, containers, crates, pallets, and other packaging materials.

Supreme Industries has a significant presence in the automotive sector, offering components and solutions for automobile interiors, such as dashboards, door panels, seat assemblies, and other automotive parts. Supreme Industries is a synonymous name in the furniture industry, offering a wide range of products including chairs, tables, cabinets, and other household and office furniture items. The company also caters to the consumer goods industry by supplying products such as storage solutions, utility items, and home improvement products.

For the benefit of the agriculture and irrigation sector, the company provides a range of products, including pipes, fittings, and water storage tanks used for irrigation, water supply, and agricultural applications. The company’s diverse product portfolio enables it to cater to a broad customer base across multiple industries. Exports sales to the tune of US$ 29.27 million during the year 2022-23 accounted for approximately 2.7 percent of its total sales.


DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com