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Jan 30, 2024

TRUFLO by Hindware teams up with Reliance Worldwide Corporation to introduce Premium Pipes

CXOToday has engaged in an exclusive interview with Mr. Rajesh Pajnoo, CEO, Truflo by Hindware Limited The domestic plastic pipes industry size is estimated at INR 350 billion; of which the organized

CXOToday has engaged in an exclusive interview with Mr. Rajesh Pajnoo, CEO, Truflo by Hindware Limited

The domestic plastic pipes industry size is estimated at INR 350 billion; of which the organized players account for 60% of the market share. The growth would be majorly driven by rapid urbanization, and government investments toward infrastructural growth owing to which there is a requirement for pipes and fittings for water distribution systems.

The market is currently being driven by growing urbanisation, demanding larger and cost-effective sewage lines, rising construction activities, and infrastructure developments. Adoption of pipes and fittings by various industries such as Chemicals & Petrochemicals, mining, and others as they are corrosion resistant will help the market to rise significantly in the forecast period.

After securing a trusted position in the market for plastic pipes, fittings, and overhead water storage tanks, Truflo by Hindware expanded into a new sector of the Bath Fittings range that included PTMT faucets, flush tanks, seat covers, and other accessories. With only a few organised players, the PTMT category is expanding quickly in tier II and tier III cities and is anticipated to grow steadily over the next few years in India, reaching more than INR 15 billion. Complementing to the current commerce and influencer network, PTMT product offerings would establish the company as the one-stop solutions provider for all their plumbing needs.

2. What strategies have kept the company ahead of the curve, how have you done in the last quarter?

We’ve always been ahead of the curve because of our vast product portfolio catering to consumer segments across price points and our deep understanding of evolving consumer needs. Despite the difficult environment and shifting prices for fuel, power, and critical raw materials, the Plastic Pipes and Fittings business saw growth of 24% year over year and reported operating revenue of INR 197 crore for the last quarter.

Over the previous quarters, we’ve been able to add +200 new products, increasing the SKUs we offer to +1500. We continue to connect with plumbers and conducted multiple training sessions for our channel partners and influencers to consolidate our presence in this category. Our products reflect trust, credibility, and innovations that resonate well with consumers, and while the challenges may linger in the near term, we will continue to work towards product innovation and widening our distribution reach. Our growth strategy, which consists of both brownfield and greenfield ventures, is in line with the goals we have set for ourselves. All of these tactical initiatives, together with the industry consolidation, continue to support our growth ambitions.

3. Could you please share details on your commencement for commercial production from the Hyderabad plant? What products will be manufactured?

Over time, Truflo emerged as the fastest-growing plastic pipes and fittings manufacturing company in India. As we gained consumer trust all around the country because of our high-quality and dependable products, in order to raise the production capacity, we invested a total of 160 crores. Truflo recently announced the commencement of its commercial production from its state-of-the-art manufacturing plant in Isnapur, Hyderabad. The extended facility will boost production capacity from 30,000 tonnes to 48,000 tonnes to manufacture all high-margin product categories.

The plant will manufacture all types of CPVC, and UPVC pipes and fittings, suitable for potable water transportation, water harvesting, and sanitation applications, primarily in the building construction segment.

4. Can you share some inputs on the partnership with Reliance Worldwide Corporation, how will it support your growth projection?

Our alliance with Reliance Worldwide Corporation is part of our long-term strategy to provide leading products. And with this partnership, we will further strengthen our connection and positioning with the plumbing community in India.

Many major manufacturers are now venturing into the luxury category of composite pipe plumbing solutions, largely for luxury housing projects.

Multilayer Composite Piping System is a premium line of pipes and fittings designed to last and function well. A great option for superior-quality plumbing. Reliance Worldwide Corporation manufactures SharkBite Composite pipes and fittings (RWC). TRUFLO is the only partner for SharkBite plumbing solutions in India.

5. There has been a steep decline in PVC prices in the last few months. How is the company managing current challenges?

The past quarter continued to witness a steady decline in PVC prices resulting in destocking by channel and inventory loss for most of the players across the industry. But despite these challenges, we have seen growth in volume over the past two quarters, largely owing to a higher share of CPVC pipes & fittings contributing over 50% to the business revenue complemented by growth in volume.

According to our Market Research, the India PVC Pipes and Fitting Market is primarily being driven by an increase in the demand for pipes in the building and infrastructure development. Additionally, the government’s increased attention to pastoral water operations helps to sustain India’s need for PVC pipes.

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