Companies

Imerys Group to acquire Hyderabad Industries’ thermal insulation business for ₹80 crore

Rajesh Kurup Mumbai | Updated on January 16, 2020 Published on January 16, 2020

With this, HIL intends to be a company largely focused on building materials and infrastructure solutions

France-based Imerys Group, a company into mineral-based specialities, has signed an agreement to acquire Hyderabad Industries Ltd’s (HIL’s) thermal insulation business for ₹80 crore in an all-cash deal. HIL is a part of the $1.6-billion CK Birla Group.

The €4.6-billion Imerys Group is executing the deal through its wholly-owned subsidiary Calderys India Refractories Ltd, sources close to the development told BusinessLine.

With this, HIL intends to be a company largely focused on building materials and infrastructure solutions, while for the French company this is part of its forward integration processes.

Centrum Capital was the financial advisor to HIL and Singhi Advisors acted as the strategic and financial advisor to Calderys India Refractories.

The industrial thermal insulation business includes manufacture, sales and export of calcium silicate insulation products sold under the brand name HYSIL. The products are in the form of pipes, blocks or specific shapes, including calcium silicate, which are used for insulation in various industrial applications, the sources added.

The deal is expected to close in three months subject to relevant conditions.

HYSIL has the largest manufacturing capacity of calcium silicate insulation products in India and South-East Asia.

HIL is the world’s largest manufacturer and seller of fibre cement roofing and sells products under six major brands — Charminar, Birla Aerocon, Charminar Fortune, Hysil, Birla HIL and Parador.

In FY19, HIL had posted standalone revenue of ₹1,513 crore and profit before tax of ₹160.11 crore, while the turnover of HYSIL business stood at ₹39.23 crore.

Percentage of revenue contributed by HYSIL business in FY19 stood at 2.6 per cent of the company’s total revenue.

Published on January 16, 2020
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