HIL to acquire Crestia Polytech at enterprise value of Rs 265 crore

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HIL Ltd, a part of the CK Birla Group, has signed an agreement with Crestia Polytech for the acquisition of Topline, a brand of pipes and fittings in Eastern India along with Crestia’s four wholly owned subsidiaries Topline Industries, Aditya Polytechnic, Aditya Industries and Sainath Polymers for Rs 265 crores.

Crestia and its subsidiaries, with an estimated turnover of Rs 330 crore in FY 24, are strong players in the pipes, fittings and water tank sector with three brands namely Topline, Rockwell, and Soniplast. Singhi Advisors was the merger and acquiston (M&A) advisors to HIL for this transaction.

This acquisition is a significant step towards HIL’s commitment to further accelerate its fast-growing pipes and fittings business in the estimated Rs 55,000 crore Indian PVC pipes & fittings market, said HIL Ltd in a statement on March 11.

With a complementary portfolio of products, technologies and market footprint, it will also help to significantly scale HIL’s production capacity and nearly double its revenue, the company further said in the statement.

"The agreement to acquire Topline perfectly aligns with our ambition, and is part of our growth strategy for the pipes and fittings business at HIL. The combined synergies of the two organisations will broaden the product portfolio, manufacturing capacity and market reach for us. Our ambition is to be five times our current size in this category by 2026," said Avanti Birla, President Strategy at HIL Ltd.

The acquisition offers immense growth potential. It not only doubles our revenue but also immediately enhances our production capacity three-fold, especially in the strategically important Eastern region. We also gain access to Topline’s significant channel presence across 15 states, with the East being a stronghold.

Significant government and private investments expected across infrastructure, construction, real estate and agriculture sectors ensures a place for HIL in a fast paced transformation journey. We are committed to delivering exceptional products and services to our customers.”

Akshat Seth, Managing Director, and CEO of HIL said, “The unique capabilities of Topline perfectly complement HIL’s portfolio and opens new product segments and markets for us. This acquisition will enable our entry into large segments such as high-density polyethylene (HDPE), medium density polyethylene (MDPE) and water tanks."

Meanwhile, HIL ltd is one of the leading manufacturer of sustainable home and building materials, and has been in the market for the last 76 years. With its German subsidiary Parador, HIL has manufacturing footprint across 25 locations in India and Europe, and serves customers in more than 80 countries worldwide.