Industrials
Ashirvad – Majority stake acquired by Aliaxis
About
Ashirvad
Founded in Bangalore in 1998, Ashirvad is one of the leading players in the Indian plastic pipe and fittings market and offers products and solutions for the building, plumbing and agriculture markets. Ashirvad has been the pioneer in designing, manufacturing and marketing of uPVC column pipes that are being successfully used in the erection of submersible borehole pumps. Ashirvad also manufactures and markets cPVC hot & cold water systems in India and recently expanded its product range by adding the soil & waste drainage line of business. With a wide network of over 1,250 distributors and 15,000 dealers, and its commitment to quality & service, Ashirvad has built a strong brand in the Indian market. It is expected to achieve gross sales of Rs. 1,000 crores (EUR 140 million) for the financial year ending March 31, 2013.
Aliaxis
Aliaxis is a leading global manufacturer and distributor of plastic fluid handling systems used in residential and commercial construction, as well as in industrial and public infrastructure applications. Based in Belgium and privately owned, the group has well-established presence in Europe, United States and Canada. In addition, it has operations in Latin America, Australasia and Asia. Aliaxis’ well known brands such as Durman, FIP, FRIATEC, Ipex, Marley and Nicoll have a strong identity and are firmly established in the markets they serve. With a presence in over 40 countries and over 100 manufacturing and commercial entities, Aliaxis realized net sales of EUR 2,235 million (Rs. 15,964 crores) for the calendar year 2011.
Background
We are pleased to announce that our client Ashirvad Pipes Private Limited (“Ashirvad”) has entered into a joint venture with Aliaxis Group S.A. (“Aliaxis”), in one of the largest cross border investments in the industry.
The joint venture will expand the product offering of Ashirvad in the building and sanitary segments in India through a combination of Ashirvad’s strong manufacturing setup and market presence and Aliaxis’s portfolio and technical knowhow. The joint venture will allow Ashirvad to further strengthen its offering and market position across India, while it represents a major step forward for Aliaxis in the growing Indian market. Aliaxis will own the majority of the joint venture with a significant shareholding retained by the Poddars, the founders of Ashirvad, who will continue to lead and run the company.
Veda Corporate Advisors (“VedaCorp”) was the exclusive advisor to the promoters of Ashirvad in the transaction. VedaCorp provided comprehensive transaction advisory services covering strategic positioning, valuation and transaction structuring, assistance in due diligence, negotiation and finalization of definitive agreements, leading to the successful closure of the transaction. VedaCorp also advised the founders on the operating framework of the joint venture, an important and unique aspect of the transaction.