CRI Pipes targets 10% share in higher end pipes market

Firm plans to focus on global pump manufacturing business

CRI Pipes, part of the CRI Group which is into manufacturing pumps, is looking at capturing 10 per cent of the Rs 10,000 crore higher range of non-metallic pipes market in India over the next five years. The company, which recently set up its second manufacturing facility in Hosur, in Tamil Nadu, would also set up the next manufacturing facility in one of the Eastern states such as Odisha or West Bengal, said senior management official.

The Group, which has its main business in the pump manufacturing, is also looking at entering into adjacent businesses in near future.

The company, which has enetered into the high end PVC pipe manufacturing early last year, has a manufacturing facility in Gujarat with around 20,000 metric tonne per annum with an expansion, and has set up another 20,000 metric tonne per annum in Hosur, in Tamil Nadu to meet the Southern and Eastern markets.

 

"We will also look at setting up another manufacturing facility later in the Eastern part of the country - may be in Odisha or West Bengal to cater the regional market," said G Soundararajan, vice-chairman of CRI Group. While the company has invested around Rs 125 crore into the two facilities, the investment for the next facility is not estimated, he added. At present, it is only manufacturing uPVC and CPVC pipes designed with higher durability to provide an efficient pumping and plumbing system, would look at the normal PVC pipes market also.

The estimated market potential in India for non-metallic pipes is expected to be around Rs 21,500 crore, of which uPVC and CPVC pipes alone would contribute to around Rs 10,000 crore, and it is into this niche high value segment the company is now venturing in the initial phase and eyeing to capture 10 per cent market share in the years to come. The company is targeting 10 per cent of this market in the next five years. This is part of the Group's plans to reach Rs 5,000 crore overall turnover by March 2021.

Speaking about the pumps business, he said that the company is planning to focus on exports of pumps from 2016-17. While it already exports to around 120 countries, it has not been focusing on exports. "While the global pump market is around $35 billion, India is exporting only 1,200 crore. There is a huge opportunity and we are planning to focus on global exports market from 2016-17," he added.

The company currently produces pumps for agricultural, residential and industrial application apart from entering into waste water treatment industry recently. It would look at opportunities in oil and gas pumps and product to cater community water supply.

It would also look at fund raising after two years and would finalise the plans including mode of fund raising later, he said.