Warburg Pincus and Kedaara Capital are in discussion to acquire Watertec India, domestic bathroom fittings and accessories maker. The proposed deal will value the unlisted company at Rs 3,500Crs ($450 mn) said multiple people aware of the development.
Watertec India Pvt Ltd was set up in 1997 as a three-way joint venture among Coimbatore-based UMS Group, Watertec Malayasia and Sri-Lanka-based South Asian Investments. It is the leader in the plastic bath fittings and accessories market. It sells bathroom fittings, accessories market. It sells bathroom fittings, accessories and sanitaryware across polymer, chrome-plated and affordable luxury categories.
Another PE fund multiple alternate asset management was also one among the contenders for Watertec. The company has posted an Ebitda, or operating profit, of Rs 250 crore ($30 million) on revenue of Rs 1,200 crore last fiscal.
Watertec has a pan-India distribution network, comprising 15,000 channel partners and dealers, 1800 suppliers, 36 warehouses & branches with presence in global markets like the UAE, SAARC countries, Egypt and South Asian markets. It plans to set up new manufacturing units in Gujarat and Odisha and more retails showrooms in the country. Currently 70% of the Watertec’s business comes from bath fittings and accessories, while remaining revenue comes from pipes and fittings segment and sanitaryware.
