In 1996, Astral Poly Technik Limited was founded by Sandeep Engineer and later became known as Astral Pipes.[7][8] At first, the company introduced industrial
CPVC pipes in India by licensing the CPVC Resin procurement technology from
Lubrizol.[9][10] However, after three years, they shifted to the plumbing sector, where CPVC pipes became more popular than
galvanized Iron (GI) pipes.[9] In 2004, the company started offering lead-free
polyvinyl chloride pressure pipes. Following that, in the next few years, they diversified into other areas such as
fire sprinkler system, Soil, Waste and Rainwater (SWR) pipes, underground pipes, and other related sectors.[9]
The introduction of PVC pipe in 2013 marked the beginning of the business's expansion into the agricultural market.[9] In 2016, it brought an end to its partnership with Lubrizol regarding the production of CPVC pipes[12] and began operations at its own CPVC compounding facility at Santej (
Gujarat) in collaboration with
Sekisui Chemical.[13]
As of 31 March 2022, Astral had a total manufacturing capacity of 282,338 MTPA for both pipes and water tanks. It has factories which are located in Gujarat,
Tamil Nadu, Rajasthan,
Maharashtra, Uttarakhand, and
Odisha. In addition, Astral had a combined adhesive manufacturing capacity of 95,980 MTPA, with factories in Santej (Gujarat), Unnao, and Rania (Uttar Pradesh), as well as in the United States and United Kingdom.[16]
The company has a distribution network of over 800 distributors in the plastic segment and over 1,800 distributors in the adhesive segment.[17]
Financials
According to the
DuPont analysis conducted in 2020, the company's
current ratio declined from 1.45% in 2015 to 1.27% in 2019.[18] However, as of March 2022, it recovered and increased to 1.78%.[19]
Mergers and acquisitions
Since 2014, Astral has acquired companies in India, the UK, and the US.[20]
In 2014, the company acquired a
Kanpur-based adhesive company Resinova Chemie for ₹2.13 billion (US$27 million).[21]
In 2018, Astral entered the infrastructure market with the acquisition of Rex Polyextrusion, which has its headquarters in Sangli, Maharashtra, and is a manufacturer of double-wall corrugated pipes.[22]
In 2022, the company acquired a majority 51 percent stake in Gem Paints for ₹1.94 billion (US$24 million).[23] In the same year, the company implemented a capacity expansion project in Karnataka, resulting in the rise of annual capacity by 36,000 kiloliters.[24]
In October 2022, Astral acquired 80% of UK-based adhesive and sealants maker Seal It Services Ltd for ₹440 million (US$5.5 million).[25][26]
Controversies
In November 2021, the
Income Tax Department conducted searches at approximately 40 locations across India belonging to Astral Limited and Ratnamani Metals and Tubes.[27]
In March 2023, a former employee and his son were involved in stealing data from the company's system and using it to conduct business separately with the company's clients, resulting in a loss of ₹50 million (US$630,000) for the company.[28]
^Krishnan, Kavita (7 February 2020).
Fearless Freedom. Penguin Random House India Private Limited.
ISBN978-93-5305-732-9.
Archived from the original on 20 July 2023. Retrieved 20 July 2023.
^Modi, Krunal Pankajkumar (20 September 2022).
"CARE Ratings: Astral Limited"(PDF). CARE Ratings.
Archived(PDF) from the original on 10 June 2023. Retrieved 21 April 2023.