Steel pipes sit on a truck (Photographer: Tomohiro Ohsumi/Bloomberg)

Astral Plans Entry Into Newer Categories After Acquisition

Pipe and adhesive maker Astral Polytechnik Ltd. plans to enter the double-wall corrugated category through its acquisition of corrugated and plastic pipe maker Rex Polyextrusion Pvt. Ltd., its Chief Financial Officer Hiranand Savlani told BloombergQuint.

The country’s second-largest pipe maker announced a day ago it would acquire 51 percent stake in Rex Polyextrusion for Rs 75.2 crore. The acquisition happened at the right price, Savlani said.

Rex Polyextrusion is likely to grow at 25-30 percent over the next three to five years, he added.

Highlights from the conversation:

  • We have high expectations from the new product.
  • We’ll distribute the product through our dealer network.
  • Total enterprise value of the acquisition is Rs 190 crore.
  • There’s no need for a large capex for the acquired company.

Watch the full conversation here: