India’s leading plastics product manufacturer to acquire Wavin's Indian Piping Business for Rs 310 crore by July 31, 2025
DSIJ Intelligence-1 / 20 Jul 2025/ Categories: Mindshare, Trending
The stock is up over 40 per cent from its 52-week low of Rs 3,020 per share.
Supreme Industries Ltd has provided an update regarding its previously announced intention to acquire the Indian Piping (Building and Infrastructure) Business of Wavin Industries Limited. Following their initial Memorandum of Understanding (MOU) on March 11, 2025, Supreme Industries Limited officially entered into Business Transfer Agreements (BTAs) on July 19, 2025, with Wavin Industries Limited and its two wholly-owned Indian subsidiaries: Wavin India Pipes and Fittings Manufacturing Private Limited and Wavin India Holding Pvt Ltd. This acquisition is structured as a slump sale, meaning the entire business is being transferred as a going concern.
The total consideration for this transaction is approximately Rs 310 crore, which includes the net working capital (NWC). The NWC component is subject to final adjustments on the closing date. The acquisition is anticipated to be completed by July 31, 2025, contingent upon the fulfilment of various terms and conditions precedent as mutually agreed upon by both parties within the respective Business Transfer Agreements.
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About the Company
Supreme Industries Limited stands as India's foremost plastics product manufacturer, offering a comprehensive array of plastic solutions across various categories. These include Plastic Piping Systems, Cross Laminated Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded Furniture, Storage & Material Handling Products, Performance Packaging Films, and Composite LPG Cylinders. The company boasts an extensive distribution network throughout India, comprising over 6,000 distributors, 32 depots, and 20 branch offices, with its consumer products also readily available in 308 showrooms nationwide.
The company has a market cap of over Rs 50,000 crore and has been maintaining a healthy dividend payout of 40 per cent. The shares of the company have a PE of 58x, an ROE of 17 per cent and an ROCE of 22 per cent. The stock is up over 40 per cent from its 52-week low of Rs 3,020 per share.
Disclaimer: The article is for informational purposes only and not investment advice.