Aug. 26, 2014
-- Ahmedabad, Gujarat, 26th August, 2014 - Astral Poly Technik Ltd., (BSE- 532830 | NSE- ASTRAL ) leaders in manufacturing of CPVC pipes and fittings and specialty adhesives for plumbing has acquired 80% controlling stake in UK based Company SEAL IT Services Ltd, manufacture of various types of Adhesives and Sealants, for Rs 440 million (GBP 4.4 million).
SEAL IT Services Ltd was formed in July 2002, having its manufacturing facilities at Elland. It operates under the brand name “BOND IT”, which is one of UK’s leading independent manufacturers of sealants, adhesives, waterproofing compounds and other building chemicals. It operates from a modern 40000 sq feet site having R & D facilities at plant and strictly adheres to ISO 9001 protocol.
Sandeep Engineer, Managing Director, Astral Poly Technik says, “The equity deal with SEAL IT represents the second joint venture for Astral Poly Technik outside of India. Having encountered SEAL IT's operations, we were impressed with the company and its product portfolio. We believe that there is a very big market for these products in India and the neighbouring countries and the same could contribute largely to the growth of the Company, both in terms of Revenue and its bottom line.”
The adhesive market in India alone is in excess of Rs 6000 crores and Astral stands to gain due to the large product portfolio of SEAL IT in this segment. Astral will get additional advantage since a number of new products are at the R & D stage. Additionally, since Astral has a strong Network of 400+ Distributors and 18000+ dealers across the country, very good presence in B to C segment and healthy relationship with ABC (Architects’
, Builders & Consultants)
, the acquisition augurs well for the Company.
Presently, SEAL IT is exporting its products throughout Europe, Africa and Middle East. The UK company will provide the technology to Astral, which will manufacture locally if required under their international brand name “BOND IT”. Astral will also explore the Middle East market from its Indian manufacturing operations in because of the logistics and cost advantages.
“Astral has a very good name in projects. This product also has very good business opportunity in B to C business segment. Astral is known for its Quality Products and that is the reason why we selected a UK based company which has the highest standard of Quality and state of the art Technology of its R&D division of SEAL IT Services”, added Mr. Sandeep Engineer
SEAL IT plans to use this relationship for its further aggressive plans for expansion. Speaking on the occasion, David Moore, Managing Director at SEAL IT, said: "The deal with Astral Poly Technik represents a win-win situation for everyone involved. This will enable them to maximise some of the impressive opportunities offered by the Indian economy - one of the fastest growing markets in the world. For SEAL IT, 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 product development and sales support.”
To complete the transaction Astral has been supported by KPMG for Financial Due Diligence and Mr Sandip Khroud from national law firm Irwin Mitchell led the legal team in the UK. HSBC has funded the entire transaction.