Raksha Pipes, a piping solutions industry and a flagship brand of The Shand Group of Industries and known for its products including Column/Riser Pipe, HDPE Pipes, Casing Pipes, Pressure Pipes and Suction Pipes, is gearing up for revamping.
The group is embarking on a journey to expand its capacity tenfold within the next five years. The company is executing a robust overhaul of its agri-pipe market strategy. The overarching objective is to position the group for a turnover of Rs 3,000 Crores by FY29, with a projected annual growth rate of 20 percent. Furthermore, the company is planning the construction of warehouses in key locations such as Odisha, Bihar, and Jharkhand, augmenting its strategic preparations for the agri-pipe market.
The company experienced 20% year-on-year revenue growth over the past two years, even amidst pandemic-induced lockdowns. According to Crisil Ratings, plastic pipes find extensive use in various sectors, with agriculture accounting for the largest end-user segment, followed by plumbing for real estate (both residential and commercial) at 38%, sewerage infrastructure at 12%, and other industrial applications comprising the remaining share. As of 2022, the agri-pipe segment held a substantial 45.2% share of India’s total plastic pipes market. With the agriculture sector experiencing robust expansion and the Indian government investing in water transportation facilities for agriculture, a significant surge in demand for plastic pipes is anticipated.
In FY23, Raksha Pipes reported revenues of Rs 950 crores, marking it as a profitable and debt-free entity. The diversified sales distribution, with 50% attributed to construction/building solutions, 25% to agriculture, and 25% to industrial infrastructure solutions.
Industry analysts project a 20% Compound Annual Growth Rate (CAGR) for Raksha Pipes’ volumes over FY24 to FY29, driven by a resurgence in rural demand and sustained demand from the plumbing segment,” he added.
“With increased capacity utilisation at all plants, we are poised for robust growth, anticipating the company’s expansion at a healthy 20-22% CAGR over FY24-FY29. As utilisation levels pick up, operating leverage will drive EBITDA gains. The target is to position the group for achieving a turnover of ₹ 3,000 Crores by FY29. Key standards and principles prioritised for inclusive growth within the company include quality, price, and service. We take our stakeholders’ interests seriously, fostering partnerships with our dealers and distributors, who are integral to our growth,” Sanjay Shand, managing director, Raksha Pipes, said.