Astral Poly Technik acquires 80% stake in UK-based Seal It

Astral manufactures Chlorinated polyvinyl chloride and fittings and specialty adhesives for plumbing

Ahmedabad-based Astral Poly Technik Limited on Tuesday announced that it has acquired 80 per cent controlling stake in UK-based adhesive and sealants maker Seal It Services Ltd for Rs 44 crore.

Astral that manufactures Chlorinated polyvinyl chloride (CPVC) and fittings and specialty adhesives for plumbing said in a statement, “Astral Poly Technik Ltd. has acquired 80 per cent controlling stake in UK-based company Seal It Services Ltd., which manufactures various types of adhesives and sealants for Rs 44 crore.”

Commenting on the acquisition, Sandeep Engineer, managing director, Astral Poly Technik said, “The equity deal with Seal It represents the second joint venture for Astral Poly Technik outside India. Having encountered Seal It’s operations, we were impressed with the company and its product portfolio.”

Engineer further said that there is a big market for these products in India and the neighbouring countries and the same could contribute largely to the growth of the company, both in terms of revenue and its bottom line.

According to the company the adhesive market in India alone exceeds Rs 6,000 crores and Astral stands to gain due to the large product portfolio of Seal It in this segment. It will get additional advantage as a number of new products are at the research and development stage.

Seal It Services Ltd, formed in 2002, has its manufacturing facilities at Elland and operates under the brand name “Bond It”, among UK’s leading independent manufacturers of sealants, adhesives, waterproofing compounds and other building chemicals.  

The UK-based company will provide the technology to Astral, to manufacture adhesives locally if required under their international brand name “Bond It”.

David Moore, managing director, Seal It, said, “The deal with Astral Poly Technik represents a win-win situation for everyone involved. For us, the additional backing will enable us to accelerate ambitious and global plans for the future.”

The acquisition comes after Astral recently bagged the Bureau of Indian Standards (BIS) certification for its CPVC BlazeMaster Fire Sprinkler Pipes, a first in the industry. The company had then said it would invest around Rs 25-30 crore on the system.