Astral eyes 10-fold increase in turnover

Ahmedabad-based Astral Polytechnik Pvt Ltd, a manufacturer of chlorinated poly vinyl chloride (CPVC) plumbing systems (pipes and fittings), aims to become a Rs 250-crore company in the next three years. It logged a turnover of Rs 26 crore in 2003-04.

"Since we are the sole manufacturers of CPVC pipes and fittings for plumbing systems in India, we have an advantage. The demand for CPVC pipes in the country is rising at a very fast rate. In the US, such pipes have replaced metal pipes and in the next five years, CPVC pipes will have a market share of over 70 per cent in the US," said Sandeep Engineer, managing director, Astral Polytechnik.

Incorporated in 1999, Astral has an over one per cent share in the organised market in India. It targets to increase this to over five per cent in the next three years.

Thomson Plastics of the US has an over 25 per cent stake in the company and supplies technical and research and development support.

Astral currently utilises just 50 per cent capacity at its Rs 15-crore plant at Kalol in Gandhinagar district. "To keep pace with the growing demand in the coming years, we plan to invest Rs five crore in the Kalol plant to expand capacity. We are also planning to set up a new plant at Bangalore with an investment of Rs 15 crore," said Engineer.

"We are concentrating on educating the masses on the comparative advantages of CPVC pipes over galvanised iron (GI) pipes. We have also launched a media campaign with Mudra as our media partners," said Engineer.

Chandan Nath, executive vice-president, Mudra said: "With concealed plumbing systems, the only things visible to a home-owner are the damp and damaged walls caused by corroded pipes. Our campaigns highlight this problem. Instead of focusing on Astral CPVC plumbing systems, the advertisements communicate the arrival of a 'new problem-free solution for life' and the end of an era of 'leaking pipes and damp walls."

"Astral CPVC pipes do not break down even under the harshest of water conditions. So there are no fears of it corroding like conventional metal pipes," he added.

The existing market in India for GI pipes is estimated at around Rs 8000 crore. The branded pipes like those of Tata, Jindal and Zenith account for 50 per cent of the market, while the rest is dominated by local manufacturers.

"As opposed to GI pipes, CPVC pipes are reliable, non-corrosive, cost effective, require lesser maintenance and are easy to install. They are fire resistant, can carry both hot and cold water and can maintain water temperature without any insulation," Engineer said.

Astral imports its fitting materials from the US and is working on developing the technique indigenously.

Exports account for 5 per cent of the company's turnover.