CK Birla Group’s Strategic Move: HIL Ltd Acquires Topline for ₹265 Crore

On Monday, March 11, 2024, CK Birla Group firm HIL Ltd informed that it had acquired a well-known pipes and fittings brand, Topline.

Details of the Acquisition

HIL Ltd, which is involved in manufacturing and selling fibre cement roofing, has signed an agreement with Crestia Polytech to acquire Topline at an enterprise value of ₹265 crore. The company will acquire Crestia Polytech’s four wholly-owned subsidiaries, which include Topline Industries, Aditya Industries, Sainath Polymers and Aditya Polytechnic.

HIL Limited is a building materials company that specialises in roofing. The company has been expanding in the PVC pipes segment because it expects growing demand from the construction sector. The demand is driven by increased government spending on infrastructure and housing projects.

This acquisition is a substantial step towards HIL Ltd’s commitment to further accelerate its fast-growing pipes and fittings business. The Indian PVC pipes and fittings market is estimated to be about ₹55,000 crore. PVC pipes are used in sewage, plumbing, drainage systems, irrigation systems, drinking water distribution, chemical handling, exhaust ducts, ventilation ducts and more.

According to Avanti Birla of the CK Birla Group, the acquisition provides huge growth potential. It not only doubles their revenue but also instantly improves their production capacity three-fold, especially in the strategically important Eastern region. They are also expecting to gain access to Topline’s influential channel presence across 15 states.

The Managing Director and CEO of HIL, Akshat Seth, says this acquisition will enable their entry into large segments, which include water tanks, High-Density Polyethylene (HDPE) and Medium-Density Polyethylene (MDPE). The company’s SKU will almost double.

He also added that access to patented technologies in electrofusion fittings and water tanks will position the company among the top-tier players. This also improves HIL’s presence in significant government projects and secures JJM (Jal Jeevan Mission) approval across 12 states. They are anticipating serving customers in various sectors, including telecom, natural gas and agriculture.

About HIL Ltd

HIL Limited is a flagship company of the CK Birla Group. The company sells pipes and fittings under the brand Birla HIL. HIL Ltd has a subsidiary in Germany and runs manufacturing activities in about 25 locations across India and Europe. The $2.9 billion CK Birla group is also the promoter of Orient Cement and Orient Paper and Industries Limited. On Tuesday, March 12, 2024, the shares of HIL Ltd opened at ₹2,768.35, up by 2.65% on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.