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Aliaxis, a Belgium-headquartered company that acquired Ashirvad Pipes in 2016, identifies India as a rapidly growing market with consistent double-digit growth.
With a 2023 topline of nearly €4 billion, the company’s growth in India is fuelled primarily by the agriculture and residential sectors. Its Indian arm currently contributes around €700 million to global revenue, a figure projected to exceed €1 billion in the near future.
Thierry Vanlancker, Executive Chairman and Managing Director of Aliaxis, speaks with businessline on company’s journey in India, its expansion plans, and outlook for the market.
What is the contribution of the Indian market to your overall revenue?
India has been a positive outlier for Aliaxis in terms of growth compared to the rest of the globe.
During COVID-19, while many construction-related companies benefited from lower raw material costs and increased outdoor activity, the global market began to plateau in 2021-2022 and has since experienced declines in regions like China and Europe, with the US remaining mostly flat.
However, India has consistently bucked this trend, maintaining double-digit growth across both building and construction segments, making it our single largest and fastest-growing market.
What are the key performing segments in your Indian market, and which one contributes the most to your business?
In India, Ashirvad operates across multiple segments. The largest, contributing about 50-60 percent of the business, is the building plumbing segment. This has been a stronghold for the company, especially in the retail space.
The other significant segments include infrastructure and industrial applications, as well as agriculture. Interestingly, Ashirvad’s presence in Bangalore was driven by its focus on the agricultural market, particularly for products like column pipes, which are crucial for accessing deep water sources in agricultural regions.
How many manufacturing plans do you have in India? Any expansion plans for that?
Currently, we operate seven plants located across Bangalore, Rajasthan, Odisha, and West Bengal. These along with subcon facilities contribute to a combined capacity of 300,000 MT/ annum.
While Ashirvad’s stronghold has traditionally been in the South, holding a significant market share, we are actively working on geographic expansion into eastern and other parts of India.
We have three upcoming plants in Hyderabad, Chennai, and Central India, with a combined capacity of 100,000 MT/annum. Two of the new plants are expected to be operational by late 2025 or early 2026, with another likely by early 2027.
What is your outlook for the Indian market over the next five years?
Over the next five years, we expect our India business to exceed €1 billion in revenue, with ambitions to possibly double its size. While we are optimistic about growth, our focus is on achieving it in a sustainable and well-structured manner. We aim to build a solid foundation, prioritising long-term success rather than pursuing short-term gains. Our local leadership team is aligned with this vision, ensuring that our growth in India is both strategic and impactful.
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