HSIL eyes pipe exports to SAARC countries 

The company is obtaining needed certifications to foray into South Asian Association for Regional Cooperation (SAARC) region as well as the US

By Author  |  Published: 9th Nov 2018  12:43 am
The company wants to provide integrated solutions for home building and in this direction has created a 2.5 lakh sqft facility for pipes at Isnapur near Patancheru.

Hyderabad: HSIL Pipes Division which has set up industry’s first platinum rated green plant with an investment of Rs 160 crore is all set to tap both domestic and export markets. The company is obtaining needed certifications to foray into South Asian Association for Regional Cooperation (SAARC) region as well as the US, besides exploring other geographies.

Rajesh Pajnoo, president, Pipes Division, HSIL Limited, told Telangana Today, Pipes business has been a natural extension for HSIL’s business. Earlier this year, we launched our Pipes Division-Truflo by Hindware. The company entered into Chlorinated PolyVinyl Chloride (CPVC) and un-plasticised poly vinyl chloride (UPVC) pipes and fittings business with an objective to provide integrated solutions for home building, facilitate cross-sale and extend the existing building products distribution chain to the hardware channel distribution chain for the pipes sub-segment. We have created a 2,50,000 sq ft facility at Isnapur near Patancheru in Telangana.”

“We are primarily looking at domestic market but are exploring overseas markets such as the SAARC region comprising countries such as Afghanistan, Bangladesh, Bhutan, Nepal, the Maldives, Pakistan and Sri Lanka. We have started exporting to Nepal. We are also going for American certification for hot and cold water plumbing. First audit is over and we are anticipating the certification to be in place in next six months,” he informed.

The company’s IGBC platinum rated plant (first in the 65-year old industry) in Telangana test-started commercial production in August this year. To make CPVC pipes and fittings, HSIL has entered in a strategic agreement with $10 billion Japanese conglomerate, Sekisui Chemical, for supply of National Sanitation Foundation certified CPVC compound, Durastream, which enables ‘Truflo’ to make CPVC pipes and fittings in India.

Capacity enhancement

The plant’s current production capacity is 30,000 metric tonnes and the company plans to take this to 45,000 tonnes by 2020. HSIL plans to have 150 distributors by March 2019, from the current 85 distributors pan-India.

The company has invested Rs 160 crores in the first phase of setting up of the plant, and will take up this investment to Rs 250 crores by 2020. The company is aiming to target revenue of Rs 200 crores for FY 2018-19.

The Indian market for plastic piping business is estimated at Rs 25,000 crores. And Rs 9,000 crores out of this is the plumbing segment alone. The pipes segment is growing at a rate of CAGR in India. In the organised sector, there will be quantum growth year-on-year.

“We have entered the market with 1,000 stock-keeping unit (SKUs). In future, Telangana plant will remain the mother plant where fitting will be manufactured. For pipes, we could explore more locations pan-India in future,” Pajnoo added.

The company has been receiving orders from several State departments across India. It has received approvals from Tamil Nadu (for portal water scheme in Dindigul district) and West Bengal governments. The company is in advanced talks with several other State governments.