Bathware business | Image:Unsplash
Prince Pipes in focus: In a strategic move to boost its bathware division, pipe manufacturer Prince Pipes has inked a deal with Klaus Waren Fixtures Private Limited to acquire ‘Aquel’ brand and associated assets for Rs 55 crore in cash.
Image Credits: Unsplash
The acquisition, funded through internal accruals, is set to be executed in two phases, tapping into Aquel’s high brand equity and manufacturing prowess.
The Aquel brand, renowned for its strong presence in Western and Central India, boasts notable brand equity, particularly among key stakeholders such as architects, designers, and builders, analysts at brokerage firm JM Financial said.
Despite facing challenges in working capital, exacerbated during the Covid-19 pandemic, Aquel maintains its reputation for product quality, featuring advanced manufacturing technologies and a diverse product range.
Prince Pipes’ acquisition of Aquel not only offers access to a broader market but also accelerates its go-to-market strategy, leveraging Aquel’s established distributor network spanning Maharashtra, Gujarat, and Karnataka, JM Financial said in a note.
With plans to infuse investments into branding and manpower for the bathware segment, Prince Pipes aims to position all its bathware products under the Aquel brand, focusing primarily on retail channels.
Anticipating a revival in demand for its piping segment in the upcoming quarter, Prince Pipes remains optimistic about future growth prospects, buoyed by favourable industry dynamics and its commitment to innovation and distribution expansion.
Despite past challenges, the company’s resilience and strategic initiatives position it well for sustained growth in the evolving market landscape.
Considering these factors, analysts at JM Financial maintain a ‘buy’ rating on Prince Pipes, projecting a March 2025 target price of Rs 780 per share.
Price Pipes shares settled 3.32 per cent higher at Rs 562.50 per share on Friday, March 22, 2024.
