The Supreme Industries Ltd signs MOU to acquire Indian Piping business of Wavin Industries Ltd

The Supreme Industries Ltd has signed a Memorandum of Understanding (MOU) with Wavin Industries Limited (herein after referred to as Wavin India) on 10th March 2025, for acquisition of its Indian Piping (Building and Infrastructure) business, at an aggregate consideration of US$ 30,000,000 (United States Dollars thirty millions) plus net working capital on the closing date, to be decided in due course. This is subject to due dMigence and applicable regulatory approvals.

Wavin India is in the business of manufacturing piping systems under the brand "Wavin" and part of the Orbia Group.

Wavin India is presently engaged in Manufacturing of PVC Pipes & Fittings, CPVC Pipes & Fittings, HDPE Pipes, PPR Pipes and other products in Building and Infrastructure segment.

The acquisition of Piping (Building and infrastructure) business includes, its manufacturing units situated at Banmore (M.P.), Hyderabad (Telangana) and Neemrana (Rajasthan) - either on Slump Sale or Share acquisition basis comprising of all tangible fixed assets, tools, moulds & dies, spare parts, all intangible fixed assets including trademarks & Intellectual property rights, all licences, approvals & permissions, contract for power & other utilities, all material contracts, orders, rate contracts in hand and employees.

Simultaneous to above acquisition, the Company will have exclusive access to all existing technologies from "Wavin B.V." - Netherlands (Parent Company) and other new technologies to be developed during a period of 7 years for India and SAARC Countries.

The turnover of Wavin India for the Financial year 2023-24 was Rs. 1007.50 Crs.

The acquisition is in the same line of existing business i.e Manufacturing plastics Piping Systems.

The acquisition of Wavin India would result in increasing the capacity of the Piping Division by 73,000 M.T. per annum. The acquisition will facilitate catering to districts/area of North and South India economically and efficiently.

Shares of Supreme Industries Limited was last trading in BSE at Rs. 3316.20 as compared to the previous close of Rs. 3390.65. The total number of shares traded during the day was 7640 in over 1821 trades.

The stock hit an intraday high of Rs. 3476.20 and intraday low of 3302.05. The net turnover during the day was Rs. 25993938.00.

Source : Equity Bulls

Keywords

TheSupremeIndustries INE195A01028 MOU Acquisition IndianPipingBusiness WavinIndustries