Supreme Industries to Acquire Wavin India’s Piping Business for $30 Million

Supreme Industries Ltd has signed a Memorandum of Understanding (MoU) with Wavin Industries on March 10, 2025, for the acquisition of its Indian piping business. 

The transaction is valued at an aggregate consideration of USD 30 million, plus networking capital on the closing date. This acquisition is subject to due diligence and necessary regulatory approvals.

Wavin India, part of the Orbia Group, specialises in manufacturing piping systems under the “Wavin” brand. The company stated that the acquisition will be executed through either a slump sale or share acquisition basis, covering all tangible and intangible assets, including trademarks, intellectual property rights, licenses, approvals, material contracts, and workforce.

Strategic Expansion in the Piping Industry

With this acquisition, Supreme Industries aims to expand its presence in the plastic piping industry by increasing its production capacity by 73,000 metric tonnes per annum. The company will gain access to Wavin India’s three manufacturing units in Banmore (Madhya Pradesh), Hyderabad (Telangana), and Neemrana (Rajasthan), enhancing its geographical reach in both North and South India.

Additionally, Supreme Industries will secure exclusive rights to Wavin B.V.’s existing technologies for water supply, sanitation, and climate-resilient solutions. The agreement also grants Supreme access to newly developed technologies over the next seven years for use in India and SAARC countries.

Financial Impact and Growth Prospects

Wavin India has demonstrated consistent financial performance, with its turnover for FY 2023-24 amounting to ₹1,007.50 crore. In previous years, it reported revenues of ₹953.70 crore in FY 2021-22 and ₹1,112.70 crore in FY 2022-23. The acquisition aligns with Supreme Industries’ strategy of strengthening its position in the piping segment by leveraging Wavin India’s established market presence and technological advancements.

The acquisition will enable Supreme Industries to cater to a broader customer base and improve cost efficiencies by integrating Wavin India’s operations into its existing framework.

Regulatory and Financial Considerations

If the acquisition proceeds through a share purchase, regulatory approvals under the Foreign Exchange Management Act (FEMA) will be required. The deal is expected to be completed by June 30, 2025, with the consideration being paid in cash.

In addition to acquiring the business, Supreme Industries will pay a lump sum annual amount and running royalties for continued access to Wavin B.V.’s proprietary technologies.

Wavin India’s Business Profile

Wavin India was incorporated on August 30, 2007, and began its plastic piping business in 2017. With a total installed capacity of 73,052 MT per annum, Wavin India’s product range caters to the building and infrastructure segment.

Conclusion

The acquisition of Wavin India’s piping business marks a strategic milestone for Supreme Industries, reinforcing its leadership in the plastics industry. 

On March 11, 2025, Supreme Industries share price opened at ₹3,317.00, touching the day’s low at ₹3,285.00, as of 9:39 AM on the NSE.

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