Targeting India revenue of 1 bn euros in 3 yrs: Aliaxis' Thierry Vanlancker

India is the real growth market for the Belgium-based fluid management solutions company, Vanlancker said, adding its Indian company, AshirvadPipes, is now an APAC innovation hub

Belgium-based fluid management solutions company Aliaxis expects its Indian company, Ashirvad Pipes, to cross 1 billion euros in revenue over the next 3-4 years, said Thierry Vanlancker, executive chairman and managing director of Aliaxis. In a video interview with Peerzada Abrar, Vanlancker said Aliaxis generated 4.1 billion euros in revenue in 2023, and that among all major economies, India is the single real growth market for Aliaxis, with huge potential ahead. Edited excerpts:  

 

 There’s data indicating that nearly 4 billion people are projected to live in water-stressed regions by 2030, with an estimated 35 per cent of all transported water lost due to network leakages. Could you share insights about the investments you are making in innovations to address these challenges?  

 

We are creating advanced piping systems for building, infrastructure, industrial, and agricultural applications. Water issues arise on three levels: shortages, excessive movement (like flooding), and building challenges. For high-rise buildings with 60-80 floors, plumbing becomes a high-tech system. If you’re aware of plumbing issues in your home or hotel room, something is wrong. In India, the market size is about 10 billion euros, with around 40 per cent being unorganised. This leaves a 6 billion euros organised market in India, growing rapidly and needing sophisticated solutions.  

 

 What role is the India team playing in building innovations?  

 

After acquiring Ashirvad Pipes in 2018, Aliaxis initially brought foreign technology into India. Today, our Bengaluru lab is a key innovation hub for the Asia-Pacific region, collaborating with labs in North America and Europe. Products originally designed for the US or Europe were often over-engineered for the Indian market, making them costly. The Bengaluru lab focused on value-creation by reducing plastic usage without compromising integrity. These innovations were later exported back to Europe and North America for their sustainability benefits. The lab has become a leader in fast, affordable application development globally.  

 

 India plans to invest $1.723 trillion (about Rs 143 trillion) on infrastructure between FY24 and FY30. What opportunities do you see in the country?  

 

India is already in the top five markets for Aliaxis and is now at number four. It may soon move to the third position. India is the single real growth market among major economies. Ashirvad contributes about 670 million euros to Aliaxis’ 4 billion euros turnover. The market is growing at 15 per cent annually. Infrastructure, agriculture, and plumbing for high-rises are key growth areas. We need investment plans to support this growth and adjust organisational structures for a billion-euro company scale, focusing on quality and global standards.   

  What are your investment, expansion, and hiring plans in India?  

 

Ashirvad's management team is highly ambitious. We are investing in additional capacity at our Chennai site, building a new plant in Hyderabad, and planning a third plant in central India. These are part of a 200 million euros investment programme expected to start in early 2026 or 2027. We have about 6,500 employees in India. New investments will require additional manpower, but we also focus on automation in existing plants, which may help cap the headcount over time.  

 

 Are there any key projects or collaborations with the government or private companies you’re exploring?  

 

We stay close to infrastructure projects, mostly at the state level. We supply products to contractors handling these projects. We are also focused on improving codes and standards in construction, such as Building Information Modelling (BIM). The digitisation of construction processes is an area we support, working alongside competitors to raise industry standards.  

 

 What are your acquisition and startup investment plans?  

 

Aliaxis started as a small company 25 years ago and grew through aggressive acquisitions. In India, Ashirvad was an acquisition that has developed well. While we focus on organic growth, we remain open to acquisition opportunities, especially for specific technologies. We have a global initiative called Aliaxis Next, which invests in startups and innovations in adjacent sectors. In India, we are building a deeper network with startups, but acquisitions are not always necessary. Often, strategic partnerships offer more value.  

 

 Do you see any role for artificial intelligence and big data analytics in your organisation?  

  We primarily focus on processing big data intelligently rather than real artificial intelligence at this stage. In agriculture, we use weather forecasting and micro-irrigation to minimise water use. We are collaborating with a startup using satellite weather technology. We also use big data analysis for sales forecasting. Managing 1.5-2 million SKUs globally, including 150,000-200,000 SKUs in India, requires sophisticated forecasting to avoid excess inventory.