Dutch firm Wavin to buy majority stake in Gujarat-based Vectus Industries

Dutch manufacturing company Wavin BV owned by Orbia, on Friday announced that it will acquire a majority stake in Gujarat-based Vectus Industries, a privately-held manufacturer of plumbing and drainage pipes and the market leader in water storage tanks in India.

With this stake buy, Orbia’s Building and Infrastructure businesses will supply to customers in the residential, commercial, industrial, infrastructure and agricultural sectors.

Avendus Capital was the exclusive financial advisor to the shareholders of Vectus on this transaction.

The deal is expected to close in the first quarter of 2022 but is subject to the satisfaction of certain closing conditions. Through this deal, Wavin is planning to expand its product and regional footprints as Vectus will continue to provide plastic pipes and tanks, complementing Wavin’s full spectrum of solutions for drinking water, wastewater and rainwater management. The applications range from sustainable urban and semi-urban building environments to efficient residential plumbing systems.

The Vectus management team and employees will continue to stay the business. The new organisation will have more than 1,500 full-time employees and approximately 1,100 contract workers.

Ashish Baheti, Managing Director of Vectus said, "The Indian pipes, fittings and water tanks market has been growing rapidly over the last decade. By combining our strong distribution network and deep understanding of the Indian market with Wavin’s technological expertise and global footprint, we will be positioned to capitalize on India’s growth potential and deliver our customers.”

"Wavin’s global strength and front runner status when it comes to innovative solutions will provide a unique platform for us to grow faster over the next few years,” Atul Ladha, Managing Director of Vectus added.

Maarten Roef, President of Wavin, said, "Today’s announcement is a major step on our global expansion journey. We are delighted to partner with Vectus, given the company’s solid manufacturing footprint and hands-on expertise. With our recent acquisitions of manufacturing facilities in Hyderabad and Neemrana, we are intent on continuing to build the healthy, sustainable environments that support India’s growing population."

Wavin-Vectus will own and manage 19 manufacturing sites, nine depots and seven regional offices across India, supported by a network of over 4,300 dealers and distributors and more than 37,000 retail counters.