Business Standard

Strong rural demand cushions volume weakness for Supreme Industries

Expanding distribution reach, value added products to help revenues, margins

Photo: Reuters
Premium

The company has also gained market share as demand is shifting from the unorganised to the organised space. Photo: Reuters

Ram Prasad Sahu
The stock of India’s largest plastic pipes company Supreme Industries is up 17 per cent since the lows in August on hopes that demand from the rural segment, higher realisations and market share gains will support its revenue growth.

Weak volume growth due to falling demand from construction and plumbing segments had dented the financial performance of pipe companies in the June quarter; Supreme Industries reported a 27 per cent dip in revenues on the back of a 19 per cent drop in volumes.

While the company operates in four segments including packaging, consumer and industrial, plastic piping is the mainstay accounting

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 23 2020 | 11:54 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com