Kolkata, Mar 10 (PTI) Belgium-based fluid management major Aliaxis, which owns a 100 per cent stake in Ashirvad Pipes, will invest over Rs 550 crore in India over the next two years, focusing on both greenfield and brownfield projects to augment its capacity by nearly 30 per cent, a company official said on Monday.
The company planned to set up two new greenfield manufacturing facilities in south India – one in Hyderabad and another in Chennai – with a combined investment of Rs 400 crore, Ashirvad Pipes CEO Partha Sarathi Basu.
This will increase its production capacity from 3 lakh tonnes to 4 lakh tonnes per annum, he said.
“With technologically advanced products, we aim to increase our market share by an additional 5 to 6 per cent from the current 12 per cent in the organised segment in the next two years,” Basu said.
He said the potential in the pipes and fittings market is immense.
Currently, Ashirvad operates three manufacturing plants in Karnataka’s Bengaluru, two in Rajasthan’s Bhiwadi and one each in Cuttack in Odisha and Durgapur in West Bengal.
The company will invest around Rs 150 crore to expand its facilities in Cuttack and Durgapur, Basu said.
The pipes, fittings, and water tanks market in India is estimated at Rs 80,000 crore, with the organised segment accounting for 60 per cent.
Basu stated that Ashirvad Pipes aims to grow its revenue to Rs 9,000 crore by 2027 from the current Rs 6,500 crore with a CAGR of 8-10 per cent.
“We are among the top producers of CPVC pipes globally, with over half of our revenue coming from this segment. We are also focusing on government business with municipal drinking water supply pipes,” he said.
Aliaxis also operates an export-focused manufacturing unit in Goa that exclusively caters to Europe and the US, he said.
“We have several innovative technologies in pipes and fittings that give us a competitive edge,” said Shireesh Pankaj, the company’s vice president in the R&D division. PTI BSM BDC
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