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Pipes & Valves Company Investment Opportunity in Mumbai, India

Partial sale of growing valve manufacturer with innovative, unique products seeking strategic partner for expansion.
This transaction has concluded.
This Business is on a Premium Plan
Established 20-30 year(s)
Employees 10 - 50
Legal Entity Private Limited Company
Reported Sales USD 900 thousand - 1 million
Run Rate Sales USD 1.1 million
EBITDA Margin 20 - 30 %
Industries Pipes & Valves
Locations  Mumbai
Local Time 10:58 PM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 1.4 million for 60.0% stake (Native Currency: INR 120,300,000)
Reason: The promoter seeks a working partner to help the business grow and later acquire entire stake to fac... View More
Includes physical assets worth USD 690 thousand
Interested to connect with advisors
Documents
Business Overview
- Key strength of the company is its unique, innovative products, which are either one-of-a-kind in India / the world or an import substitute. For some of the products, the company has applied for design registrations in the Patent Office (India) and has already received one product.
-Company has launched plastic valves recently this year, which will help tap the low-cost budget clients, apart from the premium developers like Hiranandani, Kalpataru, Lodha, Raheja, L&T, Tata Realty, Godrej Properties, and other 400+ clients.
- Have excellent brand value in building projects with premium clients for over 25 years.
- consistently growing in sales by 40 to 50% year on year and now looking at exponential growth due to.
A. significant addition of distributors (3 times) pan India (except North India) since October last year.
B. increase in sales personnel (7 times) and overestimate employee team size by 1.5 times since October last year.
C. addition of new products (2 times) and models (3 times) over last 2 years including the low cost valves. Few more new products are in pipeline.
D. Increased visibility in industry specific magazine.
Advertisements and articles; Trade Fairs; Events.
Business promotion expenses nearly quadrupled in 2.5 years.
E. Addition of market segments from only building projects to sanitary retail, online (Amazon), and housing societies as replacement businesses. (In addition, segments like industrial, HVAC and fire segment can be tapped. )
- Business is easily expandable without the need for significant capital because all the components are subcontracted and also because of the significant plasticization of the components (80%). (the production from the dies and molds is currently are utilized by only 1 to 3% of its capacity. )
About the Promoter -A first generation entrepreneur.
He holds a B. E. (Mechanical) degree and Masters in Marketing from NMIMS. With an overall experience of more than 30 years. He has spent the major portion of his long career in valve design and Research & Development of hydraulic valves. He is ably supported by the heads of Design, production and marketing.
Products & Services Overview
Import substitute and one of its kind Valves like PRV and strainers are used mainly in residential building projects, generally bought by developers, contractors, and sanitary retail (for home owners) by installing them in water supply pipes.
Assets Overview
Tangible- Inventory worth INR 4.5 crore, molds and machinery, jigs and fixtures, production equipment, air conditioners, furniture, and computers market worth INR 1.50 crores (Book value is 50 lakhs)
Intangible- unique designs, intellectual property rights, R&D projects.
Also Debtors minus creditors worth approx 85 lakhs.
Facilities Overview
- Factory, office, and storage together are about 4,200 sq feet in andheri, Mumbai which is rented from promoters themselves.
Capitalization Overview
- Has always been Self-funded. Owned by 3 shareholders of the family. promoter 65.10%; wife 34.80%. other 0.10%. No external loans/ debts.
Recent Activity
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This transaction has concluded. View similar business opportunities on SMERGERS
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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