Latinia Limited, an affiliate of Creador II LLC has invested Rs 100 crores (USD 16.7 million) for a minority stake in privately held Vectus Industries Limited (Vectus). This is the 4th investment in India for Creador, a private equity firm focused on long-term investments in growth-oriented businesses in South East Asia and India. Ashish Baheti and Atul Ladha, who have over 23 years of experience in the retail plastic products business, established Vectus in 2004.
Vectus is the only large Indian company focusing on both plastic water tanks and plastic pipes segment. A pioneer and the world’s largest player in blow molded water tanks, Vectus has consistently innovated on tanks’ features and designs that are sold under the “Vectus”, “Ganga” and “Waterwell” brands. It also offers PVC, CPVC, PPR and Composite pipes and fittings under the “Vectus” brand.
Vectus products are largely consumed in the domestic plumbing and sanitation sector. It has 11 own manufacturing units and their products are sold across 4,000 dealers and distributors spread across India. According to Atul, “We believe producing high quality products at the right value is essential but the key is our commitment in supporting our dealers and distributors to provide excellent service to our customers.”
For the financial year ended March 2014, Vectus achieved revenues of about Rs 400 crores (USD 66.7 million), with an impressive return on equity of 27%. The company grew revenues and profits by 34% and 45% respectively over the last 3 years.
Most Indian cities receive water supply for only 2 – 8 hours leading to secular demand for water storage. With ease of installation, very little maintenance and lower cost, plastic water tanks are more preferred by customers. Using blow mold technology, Vectus has been able to develop water tanks with unique features and of better value for customers.
India’s growing housing sector and the gradual shift from steel pipes for water supply and sanitation has created a large plastic pipes and fittings market. With a wide product portfolio and excellent quality, Vectus has gained good presence in the PVC, CPVC and PPR pipes market.
According to Ashish, “Vectus is the only company in India who is involved in making various high quality products used for water supply, water storage and water disposal. We are further committed to bring the latest international technology in this segment”
Daljit S. Kochhar, Managing Director, KT Advisory was the exclusive advisor to Vectus Industries for this transaction.
Brahmal Vasudevan, Founder and CEO of Creador said, “Creador is delighted to have this opportunity to partner with Ashish and Atul in shaping Vectus Industries’ next phase of growth. Both of them are passionate entrepreneurs who have developed Vectus Industries into a leading player in the water tanks and plastic pipes space with a broad range of products, strong brand and excellent distribution.”