MESSAGE FROM THE CHAIRMAN & MANAGING DIRECTOR
Dear Shareholders,
As we reflect on the past fiscal, I would like to thank all our stakeholders who have
made valuable and lasting contributions during this period to Prince Pipes, as well as the
Indian building materials industry.
This reporting period has been a unique and exciting phase in the growth tra]ectoiy of
Prince Pipes as we accomplished two significant milestones. The first is the ongoing
construction of our new integrated manufacturing facility in Begusarai, Bihar. This marks
Prince Pipes' dynamic expansion in East India - which is a major frontier of growth for
us; and the second is Prince Pipes' acquisition of the iconic Bathware brand Aquel and its
state-of-the-art manufacturing facilities, from Klaus Waren Fixtures Private Limited. This
was undertaken with the strategic intent of consolidating our presence in the bathware
segment to unlock greater value, as we focus on faster expansion and caive out a solid
brand identity.
Several strategic initiatives were implemented during the fiscal toward Prince Pipes'
long-term goal of strengthening our leadership position in the industiy and our vision of
bringing continued transformations to India's water infrastructure,
1 am happy to share that, Prince Pipes has delivered consistent performance during the
2023-24 financial year that underscores our team's leadership, our strong brand equity,
our agile execution, and our adaptability. Our revenues and margins have shown steady
momentum across all divisions.
At the start of the fiscal our operations were materially disrupted, as we witnessed
numerous ERP transitioning challenges as we upgraded processes, which had an impact on our
volumes as well as our product mix and pipe-fitting ratios. As operations stabilized, we
were quick to enhance focus on execution as we reported robust volume growth across our
segments of plumbing, SWR, agriculture as well as infrastructure.
For the fiscal 2023-24, we achieved a 10% volume expansion, with EBITDA margins
rebounding to 12% in the year. This success was driven by our operational assertiveness,
efficient supply chain management, cost-effective measures, and a focused marketing
strategy. Our resilient mindset allowed us to pursue growth, strengthen our business
fundamentals, and implement strategic initiatives. We launched new products and
aggressively expanded the new bathware segment, all aimed at propelling our business model
forward. Simultaneously, we expanded our distribution network and enhanced brand
visibility.
Robust economic growth potential
India's economic resilience is evident. It has risen to the fifth position as an
investment destination for global CEOs, up from the ninth position in 2023, Various
reports project that India could become the third-largest economy by 2030, with a
projected GDP of USD 7.3 trillion. The underlying economic growth potentiol hence
continues to be robust, as industries including real estate, infrastructure, and
agriculture, report strong progression. Key themes of inclusive development, green growth,
sanitation, health, and drinking water connections-all aimed at fostering comprehensive
economic progress, continue to offer immense growth opportunities to be leveraged.
Emphasis on execution across verticals and expanding pan-India footprint.
With strong macroeconomic fundamentals in place, we remain committed to sharp
execution. We are aggressively focusing on driving volume growth through various efforts
aimed at expanding distribution and strengthening our channel network. We continue to
build strong engagement with distributors across all product lines and have added new
partners across India with a current network of over 1,500 distributors.
Aligned with our vision to expand, our new integrated manufacturing facility at
Begusarai in Bihar is well underway, We conducted the ceremonial Bhoomi Pujan in December
2023 to mark the auspicious start of construction, which has already begun and is
progressing well, This expansion when complete will be the company's 8th state-of-art
manufacturing plant and will cater to demand in East India, which is a core growth center
for the nation and the pipes and fittings industry.
As we progress, we commenced the production of water tanks - which continues to be a
fast-growing segment, at our Haridwar plant in Q4 of FY24 and Chennai plant in Q2 of FY25,
in addition to the Dadra, Jaipur, and Telangana facilities, we will have five in-house
water tank manufacturing locations.
We continued to build more depth into our product portfolio with the launch of several
new products through the fiscal and introduced Terrafit-Subsurface drainage pipes and
innovative solutions, addressing challenges related to excessive subsurface water, as well
as the Duratap range, including faucets and showers, Duratap is manufactured with PTMT
material offering great advantages over other materials in terms of functionality and
longevity and is aimed at the cost-conscious mass market.
The bathware segment gathers strong momentum
Our bathware segment is progressing well as we make strong in-roads across key Tier-2
and 3 markets of Northern India including Srinagar, Punjab, Haryana, Delhi, Rajasthan,
Uttar Pradesh Gujarat, and the rest of Maharashtra,
As we implement our expansion strategies, Prince Pipes' acquisition of the iconic
bathware brand Aquel and its manufacturing facility in Gujarat, is a significant
development for us, This integration of the Aquel brand creates a robust platform that
aligns well strategically and financially - with Prince Pipes' ambitious growth framework,
opening up substantial synergies and market prospects across our business segments,
In a fast-transforming market led by changing customer needs, sensibilities, design,
style, and preferences, the Aquel brand has established itself as a key player with its
wide range of products and has a prominent identity in Western, Central, and parts of
South India. It has built strong brand equity amongst homeowners, interior designers,
architects, and builders, which augurs well for us as we expand our bathware presence in
the real estate segment, where we already have strong brand equity. Aquel brings an
extensive range of scientifically engineered products encompassing faucets and bathroom
accessories. It currently has 9 ranges and 250 SKUs which will be integrated into our
existing ranges to have a formidable bathware portfolio at different price points.
The combination of Aquefs state-of-the-art plant, modem manufacturing processes, and
rigorous quality control infrastructure, along with Prince's operational prowess, brings
great excitement as we sharpen our execution in this segment. The total built-up area is
-350,000 sq ft or about 8 acres, which could be used for future expansion.
Prince is in the process of building several levers of growth that will give greater
play to our expansion strategies to become a stronger, greater, and more resilient
enterprise. With this acquisition, the overall addressable market for Prince would be over
~Rs. 60,000 crores spread across Bathware, Pipes, and Water Tanks, as we take definite
strides towards our vision of transforming our country's water infrastructure.
With several strategic initiatives in place to bolster Prince Pipes' market share,
in-market execution is our key priority. By providing our sales teams with efficient
marketing toolkits to optimize revenue growth, we are well-equipped to win in our markets.
The focus now is to ensure we execute with excellence wherever we play.
Creating manufacturing excellence
India continues to bolster its manufacturing sectof s competitiveness on a global
scale. By adopting best practices, streamlining processes, and fostering innovation,
Indian companies are standing out in the international market. Prince Pipes aligns with
the same focus. We continue to maintain a strong emphasis on our manufacturing processes
and our Dadra plant has been awarded IMEA's, India Manufacturing Excellence Award, Silver
Certificate of Merit as part of the Frost & Sullivan India Manufacturing Excellence
Awards 2023.
As you are aware, IMEA's assessment framework evaluates organizations on their
manufacturing capability, supply chain reliability, and technology adoption. Our Athal
plant won the IMEXI Commitment Prize for its continued excellence in operations. This is a
premier program that recognizes efforts put into facilitating operational excellence and
building a sustainable improvement culture.
Dedicated to fortifying India's water infrastructure.
India's plastic pipe market holds promising prospects across various sectors, including
potable water supply, wastewater management, electrical and telecommunication cable
protection, agriculture, chemicals and gas. According to estimates the industry is
expected to grow -10-12% in volume terms over the next 3-5 years considering affordable
input prices, revival in the urban real estate cycle, and the governments focus on raising
farm income and driving infrastructure development.
The governments proactive approach, backed by various schemes sets the stage for
further development. In this dynamic landscape Prince Pipes, with its expertise, product
range, and pan-lndid sales network, is well poised to leverage industry opportunities.
Capitalizing on synergies and the trusted Prince brand, the company aims to create
substantial value for stakeholders, As we move forward continuous evaluation of trends and
opportunities will guide our efforts in strengthening India's water infrastructure,
Ensuring Sustainable Growth
Our commitment to a sustainable business starts at our manufacturing plants and is
integrated across the Company, Safeguarding the environment is an area of priority for us,
Evolving our operations to reduce our environmental footprint is enabling us to build a
more resilient business for the long term, Reduced water usage. C02 emissions, and
responsible waste management are focus areas where we have taken the right steps to ensure
a positive change. We continued to witness growth in Renewable sources of energy by -20%
and C02 per Kg of production wos reduced by 8.4%. Our Hdridwar plant achieved Greenhouse
Gas Emission Certification as per ISO 14064-3:2019 (Scope-1. 2 & 3) for the year FY-23
from DQS India, reiterating the Company's commitment to ESG goals.
Our sincere efforts to create value in society progressed well as we implemented key
initiatives benefiting the industry and larger society including Empower Pragati in Delhi
and Solan, a special initiative was created towards plumber upskilling. The aim was to
enhance plumbing skills while also providing them with essential healthcare services. We
collaborated with Ambuja Cement Foundation in Chomu, Rajasthan, to facilitate access to
safe drinking water and augment groundwater recharge while promoting efficient water usage
for drinking and irrigation. We also worked with Mahita Organisation in Sangareddy,
towards improving water access & farm livelihood.
Committed to delivering on our ambitions
As we step into a new fiscal, our resolve strengthens, equipping us for the journey
ahead. Our purpose remains clear and compelling, unwavering in its direction. Our
strategy, rooted in the robustness of our earnings model, stands firm. Delivery and
execution now take center stage. In this dynamic landscape, we embrace agility,
resilience, and unwavering commitment.
I would like to thank all members of our Prince Parivaar who work tirelessly to ensure
that Prince Pipes further strengthens its leadership position in the industry. I also take
this opportunity to thank you, our shareholders, for your continued involvement, trust,
support, and confidence in Prince Pipes and Fittings Limited.
We look forward to your continued encouragement.
Sincerely,
Mr. Jayant S. Chheda
Chairman and Managing Director.