Latinia Limited, an affiliate of Creador II LLC, has invested $16.7 million (around Rs 100 crore) for a minority stake in privately-held Vectus Industries Limited (Vectus), the manufacturer of plastic water tanks and pipes.
This is the PE firm’s fourth investment in India, and the company will have a board seat on Vectus, said company sources.
Anand Narayan, senior managing director at Creador Advisors India Private Ltd, who will be on the Vectus Industries board, said the transaction was a long-term investment in the growth-oriented businesses in Southeast Asia and India.
According to Narayan, the company has picked a “minority stake” in Vectus and added the key factors which attracted them was its financial performance and management.
Established in 2004, Vectus reported revenues of around Rs 420 crore and profit-after-tax of Rs 24 crore last year. The return on equity was around 27 per cent. The company grew revenues and profits 34 per cent and 45 per cent respectively over the last three years.
The promoters of Vectus include Ashish Baheti and Atul Ladha, both first generation entrepreneurs, with over 23 years of experience in the retail plastic products business.
Vectus sells its products under Vectus, Ganga and Waterwell brands. It also offers poly vinyl and composite pipes and fittings under the Vectus brand.Its products are largely consumed in the domestic plumbing and sanitation sector. It has 11 manufacturing units and the products are sold across 4,000 dealers and distributors pan-India.
“Creador is delighted to partner with Vectus Industries’ next phase of growth. We are further committed to bring the latest international technology in this segment,” said Brahmal Vasudevan, founder and CEO of Creador.
Creador has invested around $35 million in India from its Fund I, including $21 million in Repco Bank and another $13.5 million in Cholamandalam Finance Company. The total size of Fund I was around $135 million.
The company is in the process of raising money for its Fund-II, whose corpus is expected to be $250-260 million.