Bond It forms joint venture with Indian piping giant
Bond It - one of the UK's leading independent manufacturers of sealants, adhesives, waterproofing compounds and other building chemicals - has entered into a joint venture agreement with one of India’s fastest growing manufacturers of pipes and piping systems.
Following an equity deal, the business will now operate in partnership with Gujarat-headquartered Astral Poly Technik Ltd.
Listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange of India), Astral Poly Technik is a £450M business which manufactures a broad product portfolio.
Its range of chlorinated polyvinyl chloride (CPVC) and polyvinyl chloride (PVC) piping is employed across a wide range of markets and applications.
This includes water supply, SWR (S-Soil, W-Waste and R-Rainwater), fire sprinkler systems, industrial uses, gas/solar applications, bore wells and agricultural piping systems.
Astral Poly Technik is also a major producer of Lubrizol Corporation CPVC products under license from this Berkshire Hathaway company which is both ranked on the Forbes Global 2000 list and part owned by US billionaire business magnate, Warren Buffett.
It is the only licenced manufacturer in the world to make all five Lubrizol CPVC brands.
In addition, Astral Poly Technik distributes further world-renowned products under license such as Wavin AS low noise piping systems and solvent cement (adhesives) for joining pipes and fittings under the IPS Corporation USA brand, 'Weld-On'.
Reflecting its progressive, quality-focused approach, Astral Poly Technik was the first company in India to introduce CPVC pipes and fittings, lead free PVC piping systems and foam core piping systems. It also holds international accreditations such as NSF certification (National Sanitation Foundation, USA).
Financial due diligence for the deal was carried out by KMPG whilst Sandip Khroud, Associate in the Corporate team and India Specialist at law firm Irwin Mitchell, led the UK legal team. The deal was financed by HSBC.
Bond It plans to use the joint venture relationship to continue aggressive plans for expansion.
The business has enjoyed considerable growth and success over recent years and has supported this with significant investments into areas such as additional warehousing and high-efficiency production facilities.
Bond It's existing senior management team retains its equity share in the business and remains in place.
Speaking of the new joint venture, David Moore, managing director at Bond It, said: "The deal with Astral Poly Technik comes after extensive negotiation and represents a win-win situation for everyone involved.
"By enjoying access to Bond It's range, which includes plumbing solutions, our partners at Astral Poly Technik are able to complement their well-respected pipes and piping systems with a variety of related and equally high quality products.
"This will enable them to maximise some of the impressive opportunities offered by the Indian economy - one of the fastest growing in the world.
"For Bond It meanwhile, the additional backing will enable us to accelerate ambitious and global plans for the future, and to offer our growing customer base more products in more volumes than ever before.
"We will also be able to make further investments into those areas which make a real difference to customers - such as logistics, product development and sales support.”
Sandeep Engineer, CEO, Astral Poly Technik, added: "The equity deal with Bond It represents Astral Poly Technik’s second joint venture outside of India.
“We saw the company as an attractive investment opportunity after encountering its Indian operations and experiencing the quality of its products. We also recognise that the market for these products in India and in neighbouring countries is huge and continuing to grow.”
"The joint venture will enable us to share in Bond It’s success and to add to it through the provision of additional backing, expertise and opportunities."
- ENDS -
Image: Bond It APT deal.jpg
Caption: Sealing the deal. Manufacturer of sealants, adhesives and other building chemicals, Bond It has entered into a joint venture with Indian based producer of plumbing and heating systems, Astral Poly Technik Ltd.
For more information on this story, contact Wayne Mohammed at wayne@twopointzero.uk.com
Notes to editors:
- With its head offices and production facilities located in West Yorkshire, Bond It is a leading manufacturer of sealants, adhesives, building chemicals, waterproofing products, roofing compounds, polyurethanes, adhesive tapes and ceramic tile adhesives.
- Operating to ISO 9001 quality standards, the business supplies an extensive range of technically advanced, high quality products to builders’ merchants, DIY outlets, retailers and specifiers across the UK, Europe, the Middle East and Africa.
- To help customers stay abreast of changing marketing conditions and demands, Bond It has a strong commitment to product development and continues to invest heavily into R&D whilst simultaneously drawing on many decades of technical experience and expertise.
- The established Bond It brand was acquired by Seal It Services Ltd in 2002.
- More information on Bond It and its range can be found at www.bond-it.co.uk
- More information on Astral Poly Technik Ltd can be found at www.astralcpvc.com
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