The shares of this leading manufacturer of sustainable building materials gained 4.7 percent to ₹ 2,827.80 per share on Tuesday after the company acquired a 100 percent stake in five entities for a value of ₹265 crores to expand its product portfolio.
At 1:25 p.m., HIL Ltd. shares were trading at ₹2,784.90 a share, a 3.15 percent increase from the previous close price. The company has a market capitalization of ₹2,096 crore on the stock exchange.
On March 11, 2024, the company board approved the acquisition of 100 percent of the equity share capital of Crestia Polytech Private Limited and four other entities—Topline Industries Private Limited, Aditya Polytechnic Private Limited, Sainath Polymers, and Aditya Industries—at a total value of ₹265 crore.
This acquisition will grant HIL an additional capacity of 83,500 MTPA in East India, enabling the company to serve the eastern states more effectively. The strategic move provides HIL with a favourable geographical position, growth opportunities, and logistical benefits. Additionally, it opens doors for HIL to venture into new product segments, such as HDPE pipes and fittings, electrofusion fittings, and water tanks.
Crestia will serve as the intermediary through which HIL will attain 100% ownership of the equity share capital in Topline Industries Private Limited, Aditya Polytechnic Private Limited, Sainath Polymers, and Aditya Industries. Consequently, these entities will transform into direct wholly owned subsidiaries of Crestia and will subsequently function as step-down wholly owned subsidiaries of HIL. It is noteworthy that Sainath Polymers and Aditya Industries are presently structured as partnership firms.
This strategic acquisition marks a significant stride in HIL’s dedication to expediting the growth of its Pipes & Fittings business within the estimated ₹55,000 crore Indian PVC Pipes & Fittings market. The company mentioned this in its exchange filing.
The company’s acquisition will facilitate its foray into significant markets, including high-density polyethylene (HDPE), medium-density polyethylene (MDPE), and water tanks. It will also lead to a doubling of stock-keeping unit (SKU) offerings. By gaining
access to patented technologies in electrofusion fittings and water tanks, we aim to establish ourselves among the top-tier industry players.
The firm saw a 2.2 percent rise in annual revenue, climbing from ₹767 crore in Q3FY23 to ₹784 crore in Q3FY24. Furthermore, there was a shift from a net profit of ₹12.53 crore to a loss of ₹7 crore. Hil Ltd shares have gained 22 percent in a year.
HIL Limited (HIL) is a part of the C.K. Birla Group. It is one of the leading Companies in the building materials and construction industries.
The company manufactures asbestos FC sheets, coloured steel sheets, non-asbestos corrugated roofing sheets, new generation building products like autoclaved aerated concrete (AAC) blocks (light bricks) that are used for walls in building construction and aerocon panels and boards that are used as partitions in residential and commercial buildings.
HIL produces a diverse array of products, with its Charminar brand being a well-established leader in roofing solutions. Birla Aerocon offers eco-friendly building solutions, encompassing Drywalling and wet walling products. Additionally, Birla HIL manufactures and delivers plumbing solutions, Wall Care Putty, and various construction materials.
Written by Omkar Chitnis
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