In an exchange filing, Apollo Pipes said that it secured the stake via a preferential issue of 6,40,00,000 equity shares, priced at Rs 18.50 per share with a face value of Rs 10 each. This capital infusion has led to Kisan Mouldings becoming a subsidiary of Apollo Pipes.
The merger is anticipated to unlock synergistic benefits and support Apollo Pipes’ geographical expansion, especially in the western and central regions of India, by capitalizing on KML’s extensive network to spur further growth. Gupta expressed optimism about scaling the business rapidly, leveraging Apollo's strengths in financial management, raw material procurement, and system and process implementations.
Despite challenges like financing working capital, high operating expenses, and inefficiencies in raw material procurement, KML has maintained a revenue of Rs 291 crore over the last 12 months. The company operates four plants across a built-up area of 7.34 lakh sq ft but has struggled with inadequate funding for facility upgrades.
KML has a dealer network with over 100 dealers and 10,000 retailers. As per market estimates, the Indian plastic pipes industry is poised to reach a market size of approximately Rs 550 billion by FY26 with the organized market at 65% and the unorganized market at 35%, according to a company statement.
