Supreme Industries Limited

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Supreme Industries Limited

An analysis of its profitability and growth in the Plastic Pipe Segment
January 2022
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Table of Contents
Contents
Table of Contents..................................................................................................................................2
Chapter 1: Objective of Study................................................................................................................4
Chapter 2: Methodology and Information Sources.................................................................................4
Chapter 3: Plastic and PVC Pipe Industry in India.................................................................................5
Exhibit 1: Growth of Indian Plastic Pipes over the Years...............................................................................................5
Exhibit 2: Segment wise share of various Plastic Pipes...................................................................................................9
Chapter 4: Key Players in the PVC and CPVC Market Segment.............................................................12
Exhibit 3: Revenue Growth in piping segment comparison of various players..................................................14
Exhibit 4: EBIDTA Growth of Key Players.............................................................................................................................16
Exhibit 5: EBIDTA Margin of Key Players..............................................................................................................................17
Chapter 5: Supreme Industries Limited...............................................................................................19
Exhibit 6: Key operational metrics of Supreme Industries...........................................................................................22
Growth Drivers............................................................................................................................................................................................24
Exhibit 8: Plastic Pipes Sales (In M.T.)...................................................................................................................................24
Exhibit 9: Distribution Network of key players..................................................................................................................25
Profitability Drivers.....................................................................................................................................................................................28
Exhibit 10: Closing Inventory % to revenue.......................................................................................................................29
Exhibit 11: Raw Material Cost % to revenue.......................................................................................................................30
Exhibit 11: Other expenses % of Revenue of Supreme Industries..........................................................................31
Exhibit 12: Advertising Expenses % to Revenue...............................................................................................................34
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Exhibit 13: Employee Costs Expenses % of Revenue......................................................................................................35
Exhibit 14: Power and Fuel Expenses % of Revenue......................................................................................................37
Exhibit 15: Freight and Forwarding expense % of Revenue.......................................................................................38
Other findings..............................................................................................................................................................................................39
Chapter 6: Conclusion.........................................................................................................................42
Table 2.........................................................................................................................................................................................................45
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Chapter 1: Objective of Study
To identify and analyze the key growth and profitability drivers of the subject company, in its plastic pipe division.
Chapter 2: Methodology and Information Sources
For the purpose of this exercise we have analyzed the following documents:
1. Industry Reports
2. Brokerage reports on the industry
3. Subject Company’s annual reports, corporate presentations and call transcripts of earnings call and other communication
by some of its competitors.
4. Call transcripts of the management and share brokers
5. Various blogs and other information sources
Besides the above information sources, we have also conducted:
1. Site visits to the company’s principal business location
2. Telephonic interviewed dealers and distributors in multiple cities. Some of the cities covered include Agra, Meerut,
Kanpur, Lucknow, Varanasi, Ambala, Noida, Tezpur, Delhi and Kerala – The distributors included distributors of the
subject company and its competitors.
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As far as possible, we have sought corroboration of verbal claims with data available from published annual accounts,
management analysis, corporate presentations, industry analyses and other information sources.
Chapter 3: Plastic and PVC Pipe Industry in India
Pipes were traditionally made of metal and cement. The shift to plastic pipes in India began from the 80s.
While various kinds of plastics are used for the manufacture of pipes, the most prominently used material is PVC. PVC is used
for both plumbing as well as for agricultural purposes. The other plastics used for pipe manufacturing are CPVC, HDPE and PPR.
PVC pipes (including CPVC and UPVC pipes) is the most commonly used plastic. The CPVC segment is perhaps the fastest
growing subsegment.
The total plastic Pipe industry was estimated to be INR 28,000 Crores in FY 2018-19. It had grown at a CAGR of 12 % in the 5
years to 2018-. Most widely circulated market reports pre-date the COVID epidemic and as per its report CRISIL expected it
to grow a CAGR of 12-14 % for next 3-4 years and reach INR 46,000 Crores by 2022.
Exhibit 1: Growth of Indian Plastic Pipes over the Years
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Indian PVC Pipes market over the Years
600
514
500
11% CAGR 445
Inr in BN
391
400
344
300 302
300 280
250
225
205
200 165 180
100
0
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 E FY 22 E FY 23 E FY 24 E FY 25 E
Market Size (INR Bn.)
Almost all the players suffered from a slowdown in growth and profitability towards the end of 2014 for almost two years. The
slowdown started with the peaking of resin prices. While the resin prices broadly mirrored crude oil prices in the previous years,
the former started shooting up in early 2014, peaked by mid to late 2015 and then dropped sharply thereafter. For Indian
processors, the fluctuation of the Rupee also had an impact. The volume growth and margin improvement since then has
happened in part due to subdued raw material prices.
In general when the raw material prices increase, companies may experience large inventory gains, however when the raw
material prices remain at high levels, the growth may slow down. The slowdown in growth in 2013-14-16 was also due to
slowdown in the construction sector.
A couple of market reports and projections till 2022-23 were prepared by credible sources in Reliance Securities and HDFC
Securities. These reports stated that UPVC sector is expected to grow at 10-11%%, CPVC is the fastest growing sector in
the industry. From 2012 to 2018, the market share of CPVC has grown from 7% to 13%. The market share of UPVC which
was 82% in 2012 now stands at 74%. This shift will continue to happen due to CPVC’s ability to be used for both hot and cold
water as well as some other useful properties. The share of the CPVC segment is expected to rise to about 20% of the total
plastic pipe market. The recent narrowing of the price difference between PVC pipes and CPVC may accelerate this trend.
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Some of the assumptions on which these reports were based have been impacted by COVID and very steep increase in the
price of PVC resins in the year 2020-21
The growth of this industry has been severely affected by multiple factors, the biggest being COVID. Due to the impact of
COVID there was a sharp negative volume growth in the first two quarters of FY 21, however due to a significant price rise of
PVC and recovery of volumes the total monetary volume in Q3 and Q4, the total value of the turnover of the plastic pipe
industry in 2020-21 was estimated to be similar to 2019-20. In the current year the value of the output of the industry has
grown sharply in value terms, both due to the sharp rise in resin prices as well as lower base, during the last year.
During the current year, Supreme has reported a volume growth in Q2, while it has reported a degrowth in the volumes in Q1
and H1 of the year. The last two years have been exceptional years, with the some quarters impacted by COVID and other
quarters by rising PVC prices etc. A detailed analysis of the same is done in subsequent portions of this report.
A recent report estimates that the industry would continue to experience a growth of 11% CAGR over the next 4-5 years
reaching over INR 50,000 Crores by 2025. While this may largely hold, we have noticed that the volume growth has been very
poor, due to the impact of COVID and due to the availability of PVC resins.
While PVC pipes segment is expected to grow at 11% CAGR, the CPVC market is expected to grow at 18% over the next 4-5
years.
The Central government has declared several stimulus packages in Agriculture and Housing, which will also drive continuous
demand growth. The total investment in these packages total INR 4.76 Lac Crores.
Currently Government to launch rural piped water scheme. Taking note that more than 80 percent rural households in the
country are yet to get piped water supply, the government plans to launch a new mission to ensure water from the tap for each
house in villages in the next five years.
UnionJal Shakti minister Gajendra Singh Shekhawat announced that Jal Jeevan Mission for 14 crore households will be
launched soon. Under the scheme, the government plans to provide piped water to villages by Year 2024 where the quality of
water is good. In villages with poor water quality, however, a trunk water supply system will be arranged. Additionally,
Government is also set to launch a new flagship programme – Jal Jeevan Mission (Urban) – to provide piped water supply
and tap connections to all households in cities with less than 100,000 population over the next five years. The government is
expected to earmark INR 1.35 lakh crore for the mission from April 2021 to March 31, 2026. 2
2
https://www.indiawaterportal.org/articles/piped-water-all-rural-households-2024-government#:~:text=Government%20to%20launch%20rural%20piped%20water%20scheme&text=Union%20Jal
%20Shakti%20minister%20Gajendra,quality%20of%20water%20is%20good, Reliance Securities Report, 28 April 2021.
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Stimulus Packages for Agriculture & Housing Announced by the Government
Stimulus Package Amount (INR bn) % Of GDP

Agriculture & Allied Sector
Concessional Credit Boost to farmers through Kisan Credit Cards (KKC) 2,000 0.93
Creation of Agri Infrastructure Fund 1,000 0.47
Emergency working capital for farmers 300 0.14
Support to fishermen 110 0.05
Animal Husbandry infrastructure development 150 0.07
Housing
Credit Linked Subsidy Scheme for Middle Income Group (MIG) 700 0.33
Special refinance facilities for NABARD, SIDBI and NHB at policy repo rate 500 0.23
Total Package 4,760 2.21
While these programs have been announced and even budgets have been earmarked, work in many of these sectors happen
post monsoons. So we need to see the results of Q3 and Q4 to understand the full impact of these initiatives. Indications of
early sales trends from October and November are encouraging.
The exact size of the markets in value terms depend on the polymer prices, however the market is likely to grow in volume
terms.
Most of the basic assumptions particularly regarding the evolution of the market shares of various segments remain broadly
intact. The price rise of PVC resin has been much sharper than the price of CPVC resin. This may cause narrowing in the price
difference between PVC Pipes and CPVC pipes. The price of PVC pipes has increased by 40% or more since January 2020
whereas the increase in CPVC pipes has been only around 20% or less. We have put a brief price comparison of some items
during this period in Table Number 12. Refer to Annexure for table 12
While this should encourage a shift towards CPVC pipes, it is too early to notice any shift. We should however watch for this
shift in the next two or three quarters.
The last 6-7 quarters have been unusual, in terms of lockdowns, large inventory gains on account of PVC price rise, demand
growth due to government schemes etc., It may be too early to comment on the long-term impact of PVC price increase and
the consequent increase in Plastic Pipe prices.
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Exhibit 2: Segment wise share of various Plastic Pipes
FY 2020 (INR in CR.) FY 2025 E (INR in Cr.)

PPR; 1500 PPR; 2600
HDPE; 4500 HDPE; 7700
CPVC; 4500
CPVC; 10300 UPVC; 30900
UPVC; 19500
Source: Prince Pipes RHP, RSec Research
CPVC, which is the fastest growing segment in the pipe sector, is expected to clock 18% CAGR over FY20-25E.
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CPVC Pipes to Clock 18% CAGR over FY20-25E
20
18
18
16
14
12 11.4 11.4
(%)
10 9.6
0
UPVC CPVC HDPE PPR
Source: Prince Pipes RHP, RSec Research
The latest Corporate presentation from Supreme Industries estimates that the market share of organized players in the entire
plastic pipe industry has gone up to 65 %. While the HDPE pipe segment had the smallest share of organized players,
estimated at about 50%, the organized sector players had a market share of 85% in the CPVC pipe segment. The market share
of the organized players has been increasing steadily since the introduction of GST in 2017.
We now see an interesting phenomenon. We have seen many of the new units which came up in the last 10 years, have been
scaling up. There are multiple instances where units which may have started as SSI units have not only been reclassified as
MSME units, but have set up facilities with large capacities. Most of the companies in this sector have made good profits and
thus have been able to make investments to expand capacities.
So while it is true that the market share of the organized sector has been going up, the number of players in the organized
sector has been rising. There are multiple listed companies focused on Plastic Pipe for example Astral, Finolex, Ashirvad and
Prince. There are also many large companies, which do not currently have a large market share in plastic pipes, but they have
been expanding capacities. Example Apollo Pipes and Vectus.
While these newly scaled up companies may have scaled up their production facilities, they have remained largely localized in a
small geography. Examples Kriti Industries, Texmo and some others.
While some of the regional players, particularly the financially weaker players have not been able to cope with the non-
availability of PVC resin, some players such as Skipper and Kisan have closed certain plants.
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While there have been no significant Mergers and Acquisition in the industry, we are also aware of some of the smaller
organized players, who have put one or more of their plants on sale.
The bigger players have strong balance sheet, with a lot of cash. Also many of the listed companies have done extremely well
on the stock exchange and can use their market capitalization as a currency for acquisition, it is somewhat surprising that M&A
activity is extremely low.
There is also some market speculation about fresh equity raise by some unlisted players and follow-on issue by an existing
smaller player. No DRHP has been filed as yet, so we are not able to obtain confirmation on the same.
Since the final products has a very low weight to volume ratio, the logistics costs for the product are extremely high. This
makes sales in areas beyond a few hundred kilometers unprofitable. So the national players are adding capacity at multiple
locations. The national players with the largest number of plants spread out throughout the country will have a significant
advantage.
While there are several players in the Plastic Pipe segment, from some very large companies to small regional players, the
CPVC segment traditionally had 3 main raw material suppliers globally, so had fewer active players. While most companies have
made huge profits, in part driven by inventory gains in PVC segment, in the long term CPVC segment is likely to be more
important.
We also saw many smaller players getting into this segment over the last 5 years. The traditional big three (Supreme, Finolex
and Jain Irrigation)of the plastic pipe industry have yet to make a serious dent in the CPVC market. During the current year,
Supreme has reported a volume growth in CPVC in Q1 by 42%.
We had seen many CPVC resin sources emerging particularly from China, their growth has been somewhat curtailed by the
anti-dumping duty. Notwithstanding this, we have seen that almost every significant player in plastic pipe industry has CPVC
pipes in their portfolio.
In fact, players like Supreme and Finolex, who were not considered as big players in CPVC have reported significant growth
(albeit on low bases) in the H1 of current year.
In the last two years some of the main factors impacting the Plastic Pipe Industry in India have been
- COVID related economic slow down
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- Government investments and programs
- Steep rise in the PVC resin prices
- Anti-dumping duties.
Chapter 4: Key Players in the PVC and CPVC Market Segment
The main players in The Plastic Pipe Industry:
1. Jain Irrigation Until a few years ago, it was one of the largest players in the broad plastic Piping industry, with
significant presence in drip irrigation and agriculture sector. Its operating performance has suffered under the weight of
very large debt burden and paucity of working capital. It is currently implementing a debt resolution plan, which has
been approved by its lenders. Jain had seen a sharp decline in its plastic division. While it is still far behind the top 5
players, It has
2. seen a significant growth in the volumes of this division in the last 2-3 quarters.
2. Supreme Industry is the largest plastic processor in the country. It has multiple divisions with its Piping systems
division being the largest amongst pipe manufacturers.
3. Finolex Industries Limited is a prominent Plastic Pipe manufacturer. It also has a PVC manufacturing unit.
4. Ashirvad Pipes Private Limited is one of the prominent players in the industry and is reputed to have the highest
quality standards. It dominates the upper end of the market. It is also a significant player in the CPVC Pipes segment. It
has the highest growth rates and EBIDTA margins in the industry.
5. Astral Polytechnik Limited is a rapidly growing plastic Pipe manufacturer. It started as a company focused on CPVC
pipes. Today its PVC Pipes constitute about 45% of the Pipe manufacturing turnover, while CPVC is about 55% of the
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turnover. It has ventured into adhesive business, through an acquisition in 2011 and has continued to grow that
business through organic growth as well as acquisitions. It has in the last year entered into manufacture of water tanks.
6. Prince Pipes is another significant player, though smaller than the above 5 players. It had a very successful debut on
the stock exchanges in 2019. It is growing rapidly since then. It has recently signed up with Lubrizol and expects this
partnership will help it with getting a more premium rating of its products.
With Prince Pipes in the process of Stock Exchange listing, all the above players, except for Ashirvad Pipes Private Limited are
listed. Since the last few years, Ashirvad has become a part of Aliaxis, a major Belgian group in this sector.
This industry has been highly fragmented with several dozen players. The top 6-8 players have less than 50% of the total
market share of the industry. Supreme and Finolex are two of the largest players in this industry. Astral with estimated 25%
market share claims market leadership in the CPVC segment. Ashirvad is the other important player focused on the CPVC
market segment and may have similar market share in this segment.
Prince Pipes expects to grow its CPVC business rapidly. As per some estimates, it has 8% of the total CPVC market share and
about 5% of the total plastic pipe market share in the country.
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Exhibit 3: Revenue Growth in piping segment comparison of various players
Revenue Growth (INR in

Crores)
4500
4099
4000
3445 3503
3500 3173
2925
3000 2765 2729
2575 2670 2554 2636
2500 2217 2329 2420 2419
2030 1984 2070
2000 1808 1782 1850
1610 1586 1573 1570 1640
1500 1286 1330 1320
1010
1000
500
0
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Industries Astral Finolex Prince Pipes Ashirvad
Revenue Growth in piping segment comparison of various players in the recent quarters
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Revenue Growth in piping segment (INR in Crores.)
1600
1400 1347
1267
1200 1140 890
1000 898 937 902 900

851 847 886
811 798 831 845
800 765 726 761 761
529 673
632
600 517 553 550 549
506 493 507 501 504
456 430 436 459
380 396
400 309 308 331
200
0
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Supreme Astral Finolex Prince
Please refer to Annexure for table 1
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Exhibit 4: EBIDTA Growth of Key Players
EBITDA Growth (INR in Crores)

1200
1000 959
800 745
589
600 539
494 502 513
422 401 405 417
400 355 362
313
250 277 266
242 218 212 241 229
197 193 184 184
200 154 150 162
98
0
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Astral Finolex Prince Pipes Ashirvad
EBITDA Growth various players quarterly basis
EBITDA Growth (INR in Crores)

450
400 392
350
300 284
250 232
203 203
200 180 176 170
143 153 147
150 134 103
123
109 99 103 110 105 101
88 96 94
100 79 80 84 75
66 57 58 68 61
46 45 55 46 56
50 41 32 41
0
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
S upreme Astral Finolex Prince
Please refer to Annexure for Table 2
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Exhibit 5: EBIDTA Margin of Key Players
EBITDA MARGIN percentage (YEARLY)

25.00 23.40
21.27
21.2071103761885
20.3879488237722
19.7634302612124
20.00 18.7874251497006
18.12
17.8931451612903
17.10 17.4710424710425
15.46 15.26
14.9938042131351 14.84 14.9810708491076
15.00 13.88 13.4774316592498 13.9975550122249
13.30 13.14
12.1766561514196
11.9751166407465 12.2727272727273
11.7063239597913
11.2781954887218
9.71258671952428
10.00 8.457.94 8.91 9.03
8.38 7.80
7.08 7.14 6.72
5.04
5.00
0.00
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Industries Astral Finolex Prince Pipes Ashirvad
Note: Supreme Industries has changed its accounting year in 2016 therefore the above EBITDA margin for spreme industries in
mention year is calculated basis of 9 months.
If we ignore Jain Irrigation profit margins as special case, Supreme Industries Limited was amongst the leaders in terms of profit margins
until 2015-16, with Ashirvad just marginally ahead in 2 out of 3 years. Thereafter Ashirvad took a lead in profit margins. The profit margins of
Astral also started rising since 2017-18. Both these companies Astral and Ashirvad are more focused on CPVC products and while Ashirvad
continues to be a Lubrizol licensee, Astral ceased to be a Lubrizol licensee in 2018-19. Astral has successfully implemented a strategy to shift
to a lower priced raw material source in the CPVC segment and hence seen sharp increase in margins.
Almost all players have benefitted from rising raw material effect. So in most cases, 2-4 percent margins would come from the inventory
effect in the last year and in Q2 of the current year. We have given the inventory holding as a percentage of turnover in table 7 Supreme
holds slightly less inventory as a percentage of sales than others.
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The revenue growth rates of Astral were around 13.67% from 2011-12 to 2018-19 and Supreme and Finolex had similar growth rates at
around 11% from 2012-13 until 2018-19.
The profitability and revenue growth for the last 8 quarters (2 financial years is discussed separately). There have been multiple factors which
have come into play, particularly in the last 4-5 quarters.
EBITDA MARGIN percentage (QUARTERLY)

35.00
30.00 29.14
22.67
24.93
25.00 22.92
21.71 21.21 21.22
20.04 19.28 19.94
20.00 18.77 18.88 18.95 18.74 19.06
18.28
17.61 16.72 17.51
12.53 14.94 16.12
14.53 14.45
15.00 13.29 13.51
13.49
12.16 11.99 12.42 12.48
11.42
10.55 11.14
10.28 10.27
10.00 9.28
7.97 8.32
7.23
5.00
0.00
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 20222
Please refer to Annexure Table for 3
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Last One-year trends Detailed discussion
While Ashirvad has higher EBIDTA margins than both Supreme and Astral in FY 2019-20, the quarterly figures of Ashirvad are
not available.
When we look at the industry EBIDTA margins for the last 8-9 quarters starting from Q1FY20, we notice that the EBIDTA
margin of Astral is marginally ahead of Supreme margins in the first 3 quarters, and then Supreme has a huge jump in margins
during Q4. Supreme has an arrangement with its key raw material suppliers where it makes upfront volume commitments for
the whole year and it receives a discount during the last quarter.
The management has estimated this to be around INR 80 Crores in FY2020. This figure is kept confidential within the
organization, we estimate that this turnover discount is around 3 to 4 percent on the key raw materials. The absolute figure of
this discount is not available for FY 2021. We do however notice EBIDTA has jumped by 4-5 percent in Q4. While this is partly
due to the inventory effect, this increase is much sharper than its peer group, indicating that this benefit was available to the
company in FY2021.
We presume that annual volume and price negotiations with vendors were done at the beginning of 2020, before the supply
constraints emerged, whereas similar negotiations may be have been done in a completely different context. We could not get
any accurate response from industry insiders, if the annual volume discount will continue during the current year. It is possible
that this may be smaller than last year. No official management information on this is available.
Chapter 5: Supreme Industries Limited
Supreme Industries Ltd. (SIL) is a plastic product manufacturer and the largest plastic processor in India, processing over
0.37mn MT annually. Company has four business verticals i.e. Plastic Piping (55%), Packaging Products (21%), Industrial
Products (16%) and Consumer Products (7%). Company enjoys a significant market share across its business verticals; Plastic
Piping (9.48%), Industrial Products (15%) and Consumer Products (13%). Supreme Industries is the market leader in the
Packaging Products segments like XLPE (50%), EPE Foam (36%), Cap Cell (30%) and Air Bubble Film (18%). It has been
consistently increasing capacity in the plastics processing and has more than 8000 diversified products. SIL has 25
manufacturing plants situated across India.
Supreme had announced plans of making a capex of ~INR 400 crore (including maintenance capex) to increase its total
manufacturing capacity by 10% to ~700,000 metric tonnes by 2022. SI’s overall capacity by March 21 was expected to reach
694000 MT from 630000 MT in Mar’20. Majority of the incremental capacity addition to happen in pipes division wherein its
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capacity would be augmented from 445000MT in March 20 to 499000 MT by March 21. We presume that this capacity has come
up or is likely to come up soon.
Capacity for tanks to come up at three new locations from existing seven to cover more geography and reduce logistic costs.
Further, the company is contemplating setting up new plants in other states, for which land negotiations are progressing in
Assam and Tamil Nadu.
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Key milestones in the history of Supreme Industries Limited
Incorporation Setting up new manufacturing factory facility
at Noida, Uttar Pradesh PVC Pipes and Fittings Division Entered into collaboration with M/S Uponor
1942 1998 1985 2000 1989 1992

PVC pipes and fittings division introduced. Supreme Oriented Films and Suprem Vinyl Films
Tied Up with Schoeller International
The Company has become a regular
supplier of crates of coca cola
Joint ventures agreement with Kumi Kasei Co.Ltd. Japan and formed
a joint venture company named Kumi Supreme India Private Ltd
first Indian company to
launch injection moulded pallets
2018 2015 2008 2007 2003 1995

Acquired world wide exclusive rights for to Supreme Priented Films and Supreme Vinyl Films
manufacture and sell cross limited film product was amalgamated with the Supreme
Industries Ltd Commenced commercial production
at Gadegaon complex in Maharashtra
Siltap Chemicals Limited merged with Supreme Industries Limited.
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Exhibit 6: Key operational metrics of Supreme Industries
Key Operational Matrics in %

18
16
16 15
14 13
12 11
10 9 9 9 9
8
8 7
6 6
6
4
4
0
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20
Revenue Growth Y-O-Y Production Growth (Y-O-Y)
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PRODUCTION VOLUME OF VARIOUS PLAYERS
Volume in Metric Ton

90,000
80,000 74992 76759 75997

71264 72480
70,000 66609
60232
60,000 55299 55819 55453
52911
50,000
43618 42534 41644 42471 42845
40,000 35373 35142 36902 36711
30,000 24792 24627

21784
20,000 18466
10,000
0
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Supreme Astral Finolex Prince Pipes
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Growth Drivers
Exhibit 8: Plastic Pipes Sales (In M.T.)
Plastic Pipes Sales (In M.T.)

350,000
294,357
300,772
300,000 279,748
256,330 262,858 254,958
252,036
250,000 229,820 235,256
204,264 208,764 209,419 212,060
200,000 187,951 185,786
174,988 176,899
150,000 103,990 132,200 138289

132816 136,590
122,990
117539
95571 104126
100,000 60,400 89,450
69,925 77,909
49,495
50,000
0
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1. Largest Distribution network and Deep relationship with distributors
Exhibit 9: Distribution Network of key players
Distribution Network
1400
1288
1214
1200
950 984
1000
870 900 900 900
850 850 850 850
800 800
800 720700 730700 750 750 750
700 700
600 600
600
400
400
200
0
Supreme Astral Finolex
Supreme has traditionally had the largest distribution network in the industry. Many of the distributor relationships run for decades. The
promoter of Supreme personally meets the distributors when he travels to various regions.
Distributors of Supreme are extremely satisfied with the company and are often willing to work even at slightly lower margins than the
competitors.
Further since it has the maximum number of regionally dispersed plants and depots, it can serve its distributors very quickly.
Many of the distributors have told us that the Chairman of the company personally meets them when he travels in a particular region. He invites
all the distributors in a particular region for dinner and talks to them individually. An average Supreme distributor is also happy to work with
Supreme at marginally lower margins too.
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We noticed in some cases, that some of the smaller distributors prefer to buy from larger distributors rather than directly from the company.
Supreme has generous turnover linked discounts for some of the larger distributors, so they are able to offer better terms to the smaller
distributors.
2. New Products introduction

While the public perception of Supreme was that it is company focused on agri pipes, Supreme sees itself as a plumbing pipes company. It has
added new product to address several market segments. It offers 12000 plus SKUs as against 9000 plus SKUs offered by Astral.
Even though, it has not defined what it considers value added products, Supreme claims that 35.51% of its turnover comes from value added
products. Its per ton realization is rising faster than most other players. For further details please refer to chart.
PER TON REALIZATION OF VARIOUS PLAYERS
Per Ton Realization

250000
216162.9
182835.5
200000
182293.6 177204.4
149546.5
157769.9
152628.5 141984.9 155570.6
130527.6 149704
143843.2 145955.4 148542.8
150000 124388.6
111882.8 127209 131532.9 127190 131250.1
119669.1 121192.5 124112.6
113345 114815
105381.7 107654.5 104799.8 101210.3101957.5
95821.28
100000 92870
50000
0
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21
Supreme Astral Finolex Prince Pipes
26 | P a g e
3. Maximum geographical coverage
Supreme has the widest geographical coverage. It has plants in every region. It is usually the first one to open plants in under served geographies
and it has a large number of depots. Many of its competitors have minimal presence in certain regions, particular in the East and also incur large
logistics expenditure. Detailed comparison of various plants is here.

Gadegaon (Maharashtra) Ghiloth (Rajasthan) Vadodara (Gujarat) Haridwar
Jadcherla (Telangana) plant added from Sitarganj (Uttarakhand) Pune (Maharashtra) Jaipur
2018 onwards
Jalgaon – Unit I (Maharashtra) Santej (Gujarat) Pune (Maharashtra) Athal (Daman and Diu )
3 Jalgaon – Unit II (Maharashtra) Hosur (Tamil Nadu) Ratnagiri Maharashtra) Dadra (Daman and Diu )
Kanpur (Uttar Pradesh) Dholka (Gujarat) Chennai
Kharagpur (West Bengal) Sangli (Maharashtra) Kolhapur (Maharashtra)
Malanpur – Unit II (Madhya Pradesh)
Malanpur – Unit III (Madhya Pradesh)
4. Extremely competitive pricing
The retail pricing of many of the Supreme products is about 8-10 percent lower than most of its peer group.The trade margins in the case of
Supreme may be slightly lower than the peer group, so the at the Distributor sale level, the net impact of this may be smaller.
The price differential for many sales to projects and institutional sales, government sales by tender is much lower. So the weighted average
impact of lower retail price may be lower than the retail price difference may suggest. The overall price realization per tonne is largely
determined by the different product mix from its competitors.
5. Strong leverage and relationships with Key suppliers.
The company is the largest buyer of PVC resin in the country. It has very old and deep relationships with key domestic and international
suppliers. While we could not find the exact purchase prices, the company has disclosed that usually in Q4 it receives large quantity related
discounts. In the FY 2019-20, these were over INR 80 Crores. It is estimated that the company purchases its PVC between 3-5 percent cheaper
27 | P a g e
than its peer group. We did speak with a few people in the commercial / accounts department, however the exact terms of the discount could
not be obtained.
The figure for 2020-21 was not known. In fact, the management has also stated there were huge challenges in obtaining PVC resin, particularly
from international sources. The logistics issues in receiving international shipments still continue.
The biggest challenge for the entire industry in the last two years has been to ensure Supply Chain security. Many of the companies have
struggled in this. Even though the Supreme management has consistently talked about the challenges it has faced, it has handled it rather well.
This is one of the important reasons for both maintaining the sales and chalking up higher profitability.
Profitability Drivers
The EBIDTA margin historically was in the 14-15% range and started declining in 2014-15. The recovery started in 2016-17. When we compare
EBIDTA %age for 2018-19 to that of 2015-16 we notice that it has gone up by almost 4%. This has been largely due to the decline in raw material
costs by about 6.5-7.%, whereas the employee costs have increased by 1.4% and other expenses by 1.8%. Detailed analysis of various
profitability drivers is as under. Please note that the company has shifted to IndAS accounting standards, so some of the expenses pertaining to
discounting and sales promotion are now netted off from sales. Hence an accurate historical comparison is somewhat limited for some of the
expenses.
1. Inventory Gains. A very large part of the profits for the FY 2020-21 is attributable to inventory gains. While Supreme has mentioned a
figures of around INR 200-225 Crores, It is extremely difficult to compute an exact figure. The price of main raw material, viz. PVC and is
given in table …. The sales price of the company has also been rising throughout FY 2021.
We estimate that this inventory gain could be much higher and perhaps as high as INR 300 Crores+
The opening inventory for the year was INR 891 Crores and at the end of the year, it was INR 761 Crores. We do not know the details of this
inventory, viz. raw material, W-i-P and FG, neither do we know the exact inventory of PVC and CPVC, however we know that the raw material
prices of PVC were
2. Reduction in Material Cost

The Direct material has come down from over 67% in FY 2013-14 to 66% in FY 2018-19. It has continued to show a falling trend in the current
financial year too. This falling trend has been observed for both Astral as well as Ashirvad. This raw material price as a percentage of selling price
for the FY 2020-21 is 63%.
28 | P a g e
The raw material prices are generally extremely volatile and roughly follow the crude prices. The foreign exchange fluctuations also impact the
raw material prices. The selling price of the finished products are also adjusted regularly to take into input costs.
The RMC as a percentage of sales tends to go up when the raw material prices are falling. The rise in RMC %age in FY14 to FY16 is largely due to
this.
Exhibit 10: Closing Inventory % to revenue
Closing Inventory % to Revenue

18.00
16.00 15.32
13.82
14.00 12.97
12.00 11.28 11.12
10.75
10.00 9.68 9.79 9.64
9.09
8.56
8.00 7.00
6.33 6.61
5.85 5.98
6.00
4.00
2.00
0.00
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Industries Astral Finolex Prince Pipes
29 | P a g e
Exhibit 11: Raw Material Cost % to revenue
Raw Material Cost % to Revenue

80 71.70
66.84 66.42 66.61
63.83 69.77 63.53 62.5100563153661
66.91 68.83
70 66.22 65.07
64.9246960624206 66.55
63.16 63.38 62.63 60.84 62.15 62.48 63.5362592417807
59.79 59.09
60 55.67
53.85
50
40
30
20
10
0
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Industries Astral Finolex Prince Ashirvad
Raw Material Cost % to Revenue Quarterly Data
30 | P a g e
Raw Material Cost % to Revenue Quarterly Data
80 67.97
72.85 68.43
71.54 70.09 72.01
67.51 62.08 67.36
70 66.67 64.85 61.1
62.96 64.26 64.53
61.67 62.19 61.10 61.70
59.94
60 55.01 55.68
54.44
51.4
50
40
30
20
10
0
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Supreme Industries Astral F inolex Prince
Exhibit 11: Other expenses % of Revenue of Supreme Industries
Please note that the details of other expenses are available only in the annual report. Detailed figures are available for the company as
a while and not for individual segments.
31 | P a g e
Other Expenses % of Revenue
18.00 16.9 16.71
16.00 14.88 15.05 15.06
12.92 13.29
13.96 14.1 11.78
14.00 13.65 13.38 13.45 13.59
13.12 12.87 11.47
11.86 11.94 11.63
12.00 11.40 11.17
10.87
10.59 10.91
10.31 10.07
10.00
8.00
6.00
4.00
2.00
0.00
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Industries Astral Finolex Prince Ashirvad
32 | P a g e
Other Expenses % of Revenue Quarterly Data
Other Expenses % of Revenue Quarterly Data

16
14.81
14.37
14 13.65
13 12.93 12.6
12.31
12 11.3 11.33 11.17 11.54
10.7 10.84
10.8 11.07 10.91
10.08 10.42 10.08
9.61 9.95 9.56
10 9.1
8.24
8
0
Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022
Supreme Industries Astral Finolex Prince
33 | P a g e
VARIOUS COMPONENTS OF OTHER EXPENSES
SUPREME INDUSTRIES
16
14
12
7.01
6.43 6.16 5.94 5.82
10
4.91
8
0.67 0.68
0.81 0.74 0.63
6 1.92 1.96 0.66
1.57 1.69 1.85
1.31 1.75
4 0.95 1.14 1.21 1.37
0.96
2 3.89 3.65 3.5 3.66 3.92 3.12
0
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Power and Fuel Sales Promotions/Advertising Freight and Forwarding

Stores & spare parts consumed Miscellaneous Expenses
VARIOUS PLAYERS
% to Revenue (FY 2020-21)

14
12
2.13
10
1.8 4.23
8 5.73
1.71 0.49
6 1.25
1
4 3.84 0.01
1.35 3.17
2
2.3 2.83
2.03
0
Astral Finolex Prince Pipes
Power and F uel Sales Promotions/Advertising F reight and Forwarding

Stores & spare parts consumed Miscellaneous Expenses
34 | P a g e
Exhibit 12: Advertising Expenses % to Revenue
Supreme has the lowest Advertising expenses as a percentage of Revenues. Most of its advertising spend is on Point-of-Sale advertising and on
Advertisement through Electronic and Print Media and participating in several National and International exhibitions. The Company organizes
large number of Plumbing Workshops to educate plumbers on how to install the piping system in a cost-efficient manner. It holds thousands
of small plumber meets spread throughout the year. Besides, meets with Farmers, Borer groups, Plumbing Contractors, Builders and Architects
are also held throughout the year. ..Its advertising spend is consistently in the 1-1.3 percent (of revenue) whereas its competitors spend such as
Ashirvad, Astral and in the recent years, Prince have consistently spent 3-4 percent of the revenue.
Ad expense % of Revenue
4.5 4.27
4.19 4.10
4 3.84
3.55 3.47
3.5 3.34
3.17
2.15 3.03
3 2.75
2.68
2.56
2.5 2.28 2.17
1.96
2
1.53 1.6
1.5 1.32 1.35 1.37 1.31 1.35
1.14 1.14 1.13 1.2
1.07 0.96
0.95
1
0.5
0
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Astral Prince Finolex Ashirvad
35 | P a g e
6. Pre-Emptive increase in capacity
The company continuously keeps adding capacity. This capacity addition is both in the forms of greenfield expansion as well as brownfield
expansion. Since it was the first company to set up plants in all the regions, increasingly often its new investment is in brownfield expansion. It
tends to spend much less per tonne in brownfield expansion.
Some of the more recent investments have been plastic processing complexes, capable of handling multiple products.
Exhibit 13: Employee Costs Expenses % of Revenue
Employee Costs Expenses % of Revenue

7
6.01
6 5.08
5.50 5.51
5.23 5.2 5.30 4.81
4.93 5.07
5 4.73 4.85 4.82 4.88 4.82
4.57 4.63
4.35
3.94 4.1 4.09 3.94
4 3.88
3.47 3.51
3.25 3.30
3 2.81
2.54
2.19 2.25
2
0
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Supreme Astral Finolex Prince Ashirvad
36 | P a g e
The employee costs of all the companies are in a band of 4.5-5.5 percent. Supreme had the higher employee costs historically. These have come
down in the recent years and is now at the lower end of the spectrum. The total number of employees as on 31st March 2021 of Supreme
Industries are 5,078 against 1,853 employees of Astral Limited as on 31 st March 2021.
The employee cost as a percentage of revenue may appear to be very high for many players in some of the quarters in this chart. This is due to
the wild swings in the sales from quarter to quarter in the last two years. This does not represent major changes in the employee costs.

12
10.55
10
8.3
8 7.33
6.49 6.48
6 6.16 6.16 5.98
5.84
6 5.3 5.33
4.91 5.01 4.81
4.4 4.454.214.75 4.71 4.49
3.93.65
4 3.45
0
Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022
Supreme Industries Astral Finolex Prince
37 | P a g e
Exhibit 14: Power and Fuel Expenses % of Revenue
Power and Fuel % of Revenue

4.5
4 3.89 3.91
3.64 3.66
3.49
3.5
3.04 3.06 3.12
2.94 2.24
3 2.77
2.77 2.75
2.75
2.15 2.54
2.54 2.58
2.58
2.37 2.36 2.45
2.45 2.44
2.5 2.33 2.33 2.22 2.31 2.3
2.17
2.03
2.03
2 1.9 1.85
1.5
0.5
0
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
The power and fuel expenses for Supreme are much higher than other players. While this has narrowed in the recent years, the reason is not
clear. It is possible that the power costs are higher in the locations it operates. Also these figures are for the company as a whole and Supreme
has a much wider product mix than other players, hence these costs may not be strictly comparable.
Astral in particular has also invested aggressively in setting up Solar power plants on the rooftops and in its plants. The exact percentage of such
power generation is not known for any of these players.
38 | P a g e
Freight and Forwarding
The freight and Forwarding costs of Supreme are amongst the lowest except for Prince. This is due to the fact that its plants are
spread all across the country. Prince has a lower F&F cost, as it relies to a larger extent on a network of third party manufacturers.
While we could not confirm, but we have been told by one distributor that in the last few quarters or so, Supreme has also started
using third party manufacturers in some regions. We have not seen any clear evidence of the same. The purchase of stock in trade
remains unchanged. This could be a point for further investigation.
Exhibit 15: Freight and Forwarding expense % of Revenue
Freight and Forwarding Expenses % of Revenue

3.5
3 2.91
2.5 2.29
2.08 2.03
1.99 1.92 1.96
2 1.85
1.85 1.88
1.69
1.68 1.67 1.75
1.71
1.57
1.55 1.51 1.48 1.42
1.5
1.25
1.03
1
0.76
0.61
0.5 0.44
0.33
0.05 0.03 0.05 0.01
0
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
39 | P a g e
Other findings
Distributors and Dealers preference in the market

Upon connecting with multiple dealers and distributors in the below mentioned cities in India, it can be concluded that the demand of pipes
varies due to multiple factors including knowledge and purchasing power of the buyer, availability of the required product, etc. The demand is
also impacted by the dealers in specific areas where neither the dealer nor the buyer has any knowledge or preference for any specific brand.
Delhi and Noida

In cities like Delhi and Noida it was observed that the demand for a specific brand is based on the preference and economic status of the buyer.
With Delhi being such a thickly populated region, divided into planned and unplanned regions, it is easy to say that the demand for a specific
brand not only depends on the what the dealer wants to sell but also on what is readily available in the local market.
After having a few words with one of the biggest Distributor of Supreme in Chawdi Bazar, it was observed that the demand and preference for
Supreme Pipes is much higher than any other in planned regions of Delhi. This distributor also stated that advertisements also make some
brands creditworthy. Supreme is the most demanded brands in terms of PVC pipes in Delhi NCR.
This distributor also told us that while Supreme is the most demanded pipes in the market however, there have been recent reports of fakes
being sold in the market.
In Noida it was observed that the demand for Supreme is much higher than any other brand. The main factor for the demand can be the
manufacturing plant located in Noida.
Haryana and Ambala

Distributors and Dealers in Haryana and Ambala stated that the demand of Supreme and Finolex is much higher than other players.
Varanasi, Lucknow and Kanpur

Dealers in Varanasi, Lucknow and Kanpur stated that Ashirvad has the best quality in the market. Buyers who stick with the quality not pricing
always go with Ashirvad. He further stated that the most of the buyer’s demand is based on the pricing due to which demand of Supreme and
Finolex and Prince pipes is higher in comparison with Astral and Ashirvad.
40 | P a g e
Bangalore and Chennai
Dealers in Bangalore stated that the demand of Ashirvad is higher than that of Astral due to quality. Ashirvad products’ quality is better than of
Astral and any other players in the market.
We had also spoken to a major contractor, who had worked in water supply and borewell contracts in this area. They work on government
contracts and hence their decision making is largely on the basis of price. They also work in conduit laying, telecom and gas supply all across the
country.
Most of the Distributor have stated that the price of Supreme, Ashirvad and Astral has been regularly increasing. Some distributors found
difficulties to sell Ashirvad and Astral products on the retail counters due to high prices. They further confirm that the margin of Astral is better
than Ashirvad and Supreme.
There could also be an impulse for downtrading to local brands. This has not happened in a big way yet, due to the difficulty in procurement of
PVC resin by smaller players. Once the availability of PVC resin eases, we expect some market share to shift to these smaller players.
41 | P a g e
42 | P a g e
0
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Chapter 6: Conclusion
One of the key questions while analyzing Supreme Industries Limited operational performance is that while its prices are about 10 percent lower
than Ashirvad or Astral, its profitability continues to be similar to its peer group.
While Supreme’s retail prices are cheaper than prices of similar products of Ashirvad and Astral, only a certain percentage of the total sales are
retail sales. The price difference for project sales and other institutional sales, where the company’s distributors participate in government
tenders, the price difference with the peer group is much lower. So while the per tonne realization is much lower due to different product mix,
lower proportion of CPVC products, the weighted average price difference between Ashirvad and Astral may be much lower.
While it is extremely difficult to calculate the exact dealer margin, as various incentives are given to Distributors, which may vary from product to
product, region to region and various other factors, many of the distributors have mentioned that they are willing to accept slightly lower
margins from Supreme. In fact some of the distributors interviewed have told us that both Astral and Prince offer better margins. It is possible
that the Supreme offers margins which could be 1% to 2% lower than what is offered by other companies. We have interviewed several
distributors across various states.
Supreme has also kept most of their expenses in check. Further, since all its overheads are absorbed over a much larger turnover, its other
expenses tend to be somewhat lower than its competitors. Its raw material sourcing also gives it an advantage over its competitors. The
significant difference in Supreme’s strategy is that its advertising spending is much lower than its peer group.
Until now, it has focused on its cost structure to remain competitive. Its wide geographical coverage, widest product range and relationship with
distributors have helped it maintain its market share. In the last two years, the ability to maintain market share has also depended to a very
large extent on the ability to procure PVC resin.
Supreme has been consistently focusing on growth in the plumbing sector. While it has previously had a limited presence in the CPVC segment,
this year it has seen large growth, albeit on small volumes in the CPVC segment.
The key challenges for this industry would be the relatively flat volume growth in the past two years. This is against the backdrop of consistent
capacity additions by almost all the industry players. In view of the difficulty in raw material procurements, in the last 2 years or so, almost all
players have enjoyed profits far above the historical trends. While this may continue for another 2-3 quarters, with the availability of raw
materials improving, the profit margins will revert to the 14-15 percent range. Further in case, any of the players start a price war, this margin
may come down sharply. The industry structure, with relatively large capacity, large number of roughly similar sized players with relatively
strong financials create a situation, where competition could become intense in the future.
43 | P a g e
There are also significant tail winds for the industry, particularly the recovery of the housing sector and large government initiatives and
investments. Sustained growth in both areas, will depend on the interest rates, which could rise and government fiscal deficit. Further, while
there could be temporary challenges due to large capacity creation and other factors, the long term view of the industry continues to remain
positive and the industry should be able to maintain high growth rates.
44 | P a g e
Annexures
Table 1
Revenue Growth of Various Players
Supreme Astral Finolex Prince Pipes Ashirvad
FY 2015-16 2959 1286 2482 1009 1614
FY 2016-17 2765 1585 2602 1330 2029
FY 2017-18 2729 1573 2738 1320 2423
FY 2018-19 3173 1849 2575 1572 2672
FY 2019-20 3445 1984 2554 1636 2925
FY 2020-21 4099 2419 2636 2072 3503
Company Supreme Astral Finolex Prince
Q1 FY 20 898 456 851 380
Q2 FY 20 811 529 517 430
Q3 FY 20 798 506 553 396
Q4 FY 20 937 493 632 436
Q1 FY 21 765 309 507 308
Q2 FY 21 847 550 501 459
Q3 FY 21 1140 673 726 549
Q4 FY 21 1347 886 902 761

45 | P a g e
Q1 FY 22 831 504 845 331
Q2 FY 22 1267 890 900 761

EBITDA GROWTH
Table 2
Q1 2020 109 66 88 46
Q2 2020 143 99 41 57
Q3 2020 134 96 58 45
Q4 2020 203 94 79 55
Q1 2021 103 46 68 32
Q2 2021 180 110 56 80
Q3 2021 284 153 105 103
Q4 2021 392 203 84 147
Q1 2022 176 101 61 41
Q2 2022 232 170 75 123
Company Supreme Astral Finolex Prince Ashirvad

FY 2015-16 250 154 197 98 242
FY 2016-17 432 193 218 150 401
FY 2017-18 405 212 184 162 494
FY 2018-19 417 277 241 184 502
FY 2019-20 589 355 266 229 539
46 | P a g e
FY 2020-21 959 513 313 362 745
EBIDTA Margin of Key Players

EBITDA MARGIN IN %
Table 3
Company Supreme Astral Finolex Prince Ashirvad

FY 2015-16 8.45 11.98 7.94 9.71 14.99
FY 2016-17 15.62 12.18 8.38 11.28 19.76
FY 2017-18 14.84 13.48 6.72 12.27 20.39
FY 2018-19 13.14 14.98 7.80 11.71 18.79
FY 2019-20 17.10 17.89 8.91 14.00 18.12
FY 2020-21 23.40 21.21 17.47 21.27

Q1 FY 20 12.16 14.53 10.28 11.99
Q2 FY 20 17.61 18.77 7.97 13.29
Q3 FY 20 16.72 18.88 10.55 11.42
Q4 FY 20 21.71 18.95 12.42 12.53
Q1 FY 21 13.51 14.94 13.49 10.27
Q2 FY 21 21.21 20.04 11.14 17.51
47 | P a g e
Q3 FY 21 24.93 24.23 14.45 18.74
Q4 FY 21 29.14 22.92 19.28
Q1 2022 21.22 19.94 7.23 12.48
Q2 2022 18.28 19.06 8.32 16.12
Table 4
Supreme Sales, Revenue and EBIDTA (For Pipe Segment only)
Year Sales in Tonnes Y-0-Y growth in % EBIDTA in INR Revenue in Crore EBIDTA Margin
FY 2012-13 272 1692 16.08%
FY 2013-14 1,87,951 309 2060 15.00%
FY 2014-15 2,04,264 9% 282 2113 13.35%
FY 2015-16 2,29,820 13% 227 1585 14.32%
FY 2016-17 2,35,256 2% 399 2465 16.19%
FY 2017-18 2,56,330 9% 388 2729.35 14.25%
FY 2018-19 2,79,748 9% 404 3173.4 12.75%
FY 2019-20 3,00,772 8% 448 3444 15.10%
Table 5
Plastic Pipes Sales (In M.T.)
Particulars Astral Supreme Finolex Prince
48 | P a g e
FY 2012-13 49,495 174,988
FY 2013-14 60,400 187,951 176,899
FY 2014-15 69,925 204,264 185,786
FY 2015-16 77,909 229,820 208,764
FY 2016-17 89,450 235,256 209,419 95,571
FY 2017-18 103,990 256,330 252,036 104,126
FY 2018-19 122,990 279,748 262,858 117,539
FY 2019-20 132,200 300,772 254,958 132,816
FY 2020-21 136,590 294,357 212,060 138,289
Table 6
Distribution Network
Particulars Astral Finolex Supreme

FY 2012-13 400 700
FY 2013-14 700 600 720
FY 2014-15 700 600 730
FY 2015-16 750 700 870
FY 2016-17 750 800 900
FY 2017-18 750 850 950
FY 2018-19 800 850 984
49 | P a g e
FY 2019-20 850 900 1214
FY 2020-21 850 900 1288
Table 7
Particulars Supreme Astral Finolex Prince
FY 2017-18 7.00 9.68 9.79 8.56
FY 2018-19 6.33 10.75 11.28 5.85
FY 2019-20 9.64 12.97 15.32 11.12
FY 2020-21 5.98 9.09 13.82 6.61
Table 8
Advertisement Expenses % to Revenue
Particulars Astral Ashirvad Prince Supreme Finolex
FY 2015-16 2.28 4.19 1.14 0.95 1.07
FY 2016-17 2.68 4.27 1.13 1.14 1.32
FY 2017-18 3.55 2.56 1.53 1.2 1.35
FY 2018-19 3.34 2.17 2.75 1.37 2.15
FY 2019-20 3.47 3.03 1.96 1.31 1.6
FY 2020-21 3.84 4.1 3.17 0.96 1.35
Table 9
CPVC and PVC Import Data (October – December 2021)
50 | P a g e
BE HS Code Product Description Exporter Name Standard Standard Unit Rate Country of
Date Qty (In INR Origin
KGS)
01-10- 3904102 S-PVC RESIN TK-1000 DPD MITSUBISHI CORPORATION 374,000.0 115.32 Japan
2021 0 IMPORTER AEO T2 0
05-10- 3904102 PVC RESIN SUSPENSION M S MITSUBISHI CORPORATION 104,000.0 107.14 Japan
2021 0 GRADE TK-700 0
2021 0 GRADE TK-700 0
2021 0 GRADE TK-1000 0
07-10- 3904102 PVC RESIN SUSPENTION M S CHINA GENERAL PLASTICS 170,000.0 125.74 Taiwan
2021 0 GRADE H-58 CORPORA 0
07-10- 3904901 CPVC RESIN H727 M S MITSUI CO LTD 120,000.0 148.80 Japan
2021 0 0
2021 0 0
16-10- 3904102 PVC RESIN , TYPE SG-5 , YIBIN TIANYUAN GROUP CO LTD 265,000.0 108.63 China
2021 0 GRADE-I DPD IMPORTER 0
51 | P a g e
AEO T2
2021 0 0
22-10- 3904102 PVC RESIN H-58 AS PER CHINA GENERAL PLASTICS 170,000.0 148.57 Taiwan
2021 0 PROROMA INV. NO:KC- CORPORATION 0
100924-1A
DT.24.09.2021.LC.0958ILF21
0011122
2021 0 GRADE TK -700 0
2021 0 GRADE TK-700 0
2021 0 GRADE TK-1000 0
2021 0 GRADE TK-1000 0
26-10- 3904102 KANEKA PVC RESIN M S MITSUI CO LTD 508,200.0 117.49 Japan
2021 0 SUSPENSION GRADE 0
KANEVINYL S1007
2021 0 GRADE TK -700 0
28-10- 3904102 PVC RESIN SUSPENSION M S HANWHA SOLUTIONS 612,000.0 122.80 South Korea
2021 0 GRADE P700 CORPORATION 0
2021 0 GRADE TK-700 0
52 | P a g e
2021 0 GRADE TK-1000 0
2021 0 GRADE TK-700 0
02-11- 3904901 CPVC RESIN H829F M S MITSUI CO LTD 220,000.0 144.02 United States
2021 0 0
2021 0 0
2021 0 0
06-11- 3904901 CPVC RESIN H829 INV. EZ M S MITSUI CO LTD 169,400.0 147.32 Japan
2021 0 6673809 0
2021 0
2021 0 0
2021 0 0
2021 0
53 | P a g e
2021 0
2021 0 0
2021 0 0
2021 0
2021 0 0
11-11- 3904102 PVC RESIN SUSPENSION M S YIBIN TIANYUAN GROUP CO 265,000.0 111.44 China
2021 0 GRADE SG-8 LTD 0
100924-1A
DT.24.09.2021.LC.0958ILF21
0011122
2021 0 0
12-11- 3904901 CPVC RESIN H829 INV. EZ M S MITSUI CO LTD 48,000.00 147.32 Japan
2021 0 6673803
54 | P a g e
2021 0 GRADE TK-1000 0
2021 0 GRADE TK-1000 0
2021 0 GRADE TK-700 0
18-11- 3904102 POLYVINYL CHLORIDE PVC MEXICHEM RESINAS COLOMBIA S 208,000.0 101.24 Colombia
2021 0 SUSPENSION AS 0
HOMOPOLYMER RESIN PVC-
35-650 SUSPENSION
GRADE DPD IMPORTER
AEO T2
2021 0 0
2021 0 PERFORMA INV. NO:KC- CORPORATION
100924-1A
DT.24.09.2021.LC.0958ILF21
0011122
100924-1A
55 | P a g e
DT.24.09.2021.LC.0958ILF21
0011122 INV. EZ 6673804
2021 0 GRADE TK-1000 CONTRACT 0
NO.DKBA-TK1080
DT.26.08.2021 , LC
NO.0958ILF210009857
DT.27.08.2021 , DPD-AEO T2
2021 0 CONTRACT NO.B55E-21- 0
6185 DT.02.09.2021 , LC N
O.529010978483-L
DT.07.09.2021 , DPD-AEO T2
CLIENT
NO.DKBA-TK1084C
DT.10.09.2021 , LC
NO.529010979605-L
DT.18.09.2021 , DPD-AEO T2
C
2021 0 CONTRACT NO. B55E-21-
6185 DTD 02.09.21 , LC NO.
529010978483-L DTD
07.09.21 , DPD-AEO T2
CLIENT
22-11- 3904109 PVC SUSPENSION SP660 PT TPC INDO PLASTIC AND 180,000.0 138.94 Indonesia
ASPER SALES CHEMICALS 0
56 | P a g e
2021 0 CONTACT#TPC-CONT-EXP-
09109-2021DT.16.09.2021 ,
LC#0958IFL210010768
DT.18.09.2021
2021 0 CONTRACT NO.B55E-21-
6185 DT.02.09.2021 , LC N
O.529010978483-L
DT.07.09.2021 , DPD-AEO T2
CLIENT
22-11- 3904109 PVC SUSPENSION SP 660 -AS PT TPC INDO PLASTIC AND 270,000.0 138.94 Indonesia
2021 0 PER CONTRACT NO: TPC- CHEMICALS 0
CONT-EXP-09109-2021
DT.16.09.2021
LC#0958ILF210010768
DT.18.09.2021
NO.TK1080 DTD 26.08.21 ,
LC NO.0958ILF210009857
DTD 27.08.21 DPD-AEO T2
CLI
6167 DTD 28.07.21 , LC NO.
0958ILF210008476 DTD
29.07.21 , DPD -AEO T2
CLIENT
57 | P a g e
6199 DT.12.10.2021 , LC
NO. 560LC01212980001 DT.
26.10.2021 , DPD-AEO T2
CLIENT
6185 DT.02.09.2021 , LC
NO.529010978483-L DT.
07.09.2021 , DPD-AEO T2
CLIENT
6199 DT.12.10.2021 , LC
NO. 560LC01212980001 DT.
26.10.2021 , DPD-AEO T2
CLIENT
6167-DTD 28.07.21 , LC NO.
0958ILF210008476 DTD
29.07.21 DPD-AEO T2
CLIENT
27-11- 3904901 CPVC RESIN H829 , M S MITSUI CO LTD 72,600.00 153.96 Japan
2021 0 CONTRACT NO . B55E-21-
6198 DT 05.10.2021 , LC NO
0958ILF210011765 DT.
13.10.2021 , DPD-AEO T2
CLIENT INV. EZ 6673806
58 | P a g e
6198 DT.05.10.2021 , LC
NO.0958ILF210011765 DT.
13.10.2021 , DPD-AEO T2
CLIENT
2021 0 GRADE TK- 1000
CONTRACT NO.DKBA-
TK1079 DT 24.08.2021 , LC
NO 0958ILF210009782 DT.
30.08.2021 , DPD-A
NO.DKBA-TK1079 DT
24.08.21 , LC
NO.0958ILF210009782 DT
30.08.21 DPD-AEO T2 C
2021 0 GRADE TK- 1000 0
CONTRACT NO.DKBA-
TK1084A DT.10.09.2021 , LC
NO. 529010979605-L DT.
18.09.2021 , DPD-A
2021 0 PROROMA INVOICE NO:KC- CORPORATION
100924-1A
59 | P a g e
DT.24.09.2021.LC.0958ILF21
0011122
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021, DPD-AEO T2
CLIENT
6185 DTD 02.09.21, LC
NO.529010978483-L DTD
07.09.21 DPD -AEO T2
CLIENT
100924-1A
DT.24.09.2021.LC.0958ILF21
0011122 INV. EZ 6673804
6198 DT.05.10.2021, LC
NO.0958ILF210011765 DT.
13.10.2021, DPD-AEO T2
CLIENT
6185 DT.02.09.2021, LC
NO.529010978483-L
60 | P a g e
DT.07.09.2021, DPD-AEO T2
CLIENT
100924-1A
DT.24.09.2021.LC.0958ILF21
0011122
2021 0 GRADE SG-8 PROFORMA LTD 0
INVOICE NO.PI-TY-PVC-21-
029 DT.06.08.2021, LC
NO.0958ILF210008964
DT.10.08.202
029 DT.06.08.2021, LC
NO.0958ILF210008964
DT.10.08.202
6168 DTD 28.07.2021, LC
NO. 0958ILF210008801 DTD
05.08.2021 DPD-AEO T2
CLIENT
2021 0 CONTRACT NO . B55E-21-
6185 DT. 02.09.2021, LC NO
529010978483-L
61 | P a g e
DT.07.09.2021, DPD-AEO T2
CLIENT
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021 ,DPD-AEO T2
CLIENT
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021,DPD-AEO T2
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021,DPD-AEO T2
CLIENT
09-12- 3904109 PVC SUSPENSION SP660, AS PT TPC INDO PLASTIC AND 90,000.00 140.42 Indonesia
2021 0 PER SALE CONT.TPC- CHEMICALS
CONTR/EXP-
09109/2021.LC.0958ILF2100
10768 DT.18.09.2021
2021 0 GRADE TK- 700 CONTRACT 0
NO.DKBA/TK1098A DT
30.09.21, LC
62 | P a g e
NO.1394FLC210910 DT
05.10.21 DPD-AEO T2 CL
10-12- 3904901 CPVC RESIN LUCALOR PVCC M S KEM ONE 50,000.00 170.78 China
2021 0 RH8067 GRVS PROFORMA
INVOICE NO. 205044986 DT.
22.10.2021 , DPD-AEO T2
CLIENT
029 DT.06.08.2021, LC
NO.0958ILF210008964
DT.10.08.202
11-12- 3904102 PVC RESIN GRADE H-58 DPD CHINA GENERAL PLASTICS 170,000.0 158.63 Taiwan
2021 0 IMPORTER AEO T2 CORPORATION 0
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021,DPD-AEO T2
CLIENT
2021 0 PER SALE CONT. TPC- CHEMICALS
CONT/EXP-
10122/2021.LC.0958ILF2100
12449 DT.27.10.2021
2021 0 PER SALE CONT. TPC- CHEMICALS 0
63 | P a g e
CONT/EXP-
10122/2021.LC.0958ILF2100
12449 DT.27.10.2021
2021 0 GRADE SG-8 P.INVOICE NO. LTD 0
PI-TY-PVC-21-029 DTD
06.08.21 & LC NO.
0958ILF210008964 DTD
10.08.21 DPD
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021, DPD-AEO T2
CLIENT
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021, DPD-AEO T2
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021, DPD-AEO T2
CLIENT
22-12- 3904109 PVC RESIN SUSPENSION M S SCG PLASTICS CO LTD 180,000.0 149.67 Thailand
GRADE SF580 PROFORMA 0
64 | P a g e
2021 0 INVOICE NO. 3111009699
DT. 20.09.2021, LC NO.
0958ILF210010938 DT.
22.09.2021
23-12- 3904109 PVC RESIN SUSPENSION M S SCG PLASTICS CO LTD 90,000.00 149.67 Thailand
2021 0 GRADE SF580 PROFORMA
INVOICE NO. 3111009699
DT. 20.09.2021, LC NO.
0958ILF210010938 DT.
22.09.2021
6199 DT.12.10.2021, LC NO.
560LC01212980001 DT.
26.10.2021, DPD-AEO T2
CLIENT
2021 0 GRADE TK-700CONTRACT 0
NO.DKBA/TK1117
DT.21.10.2021,LC
NO.529010985233-L
DT.26.10.2021,DPD-AEO T2
CL
27-12- 3904102 PVC RESIN SUSPENSION M S MEXICHEM RESINAS 520,000.0 146.59 Colombia
2021 0 GRADE-35-650 PROFORMA COLOMBIA S A 0
INVOICE NO.24092021-2
DTD 24.09.2021 DPD - AEO
T2 CLIENT
65 | P a g e
2021 0 GRADE TK-1000CONTRACT 0
NO.DKBA/TK1122
DT.01.11.2021,LC
NO.5522617470
DT.09.11.2021,DPD-AEO T2
CLIEN
6168 DTD 28.07.2021,LC
NO.0958ILF210008801 DTD
05.08.2021 DPD -AEO T2
CLIENT
034 DT.30.08.2021, LC
NO.1394FLC210760
DT.31.08.2021,
031 DT.11.08.2021, LC NO.
529010974147-L
DT.16.08.2021
11.08.21, LC NO.
529010974147-L DTD
66 | P a g e
16.08.21 DPD-AE
11.08.21,LC NO.
529010974147-L DTD
16.08.21 DPD-AEO
28-12- 3904102 PVC RESIN SUSPENSION M S MEXICHEM RESINAS 520,000.0 146.59 Colombia
2021 0 GRADE 35-650 PROFORMA COLOMBIA S A 0
INVOICE NO. 24092021-1
DT. 24.09.2021, DPD-AEO T2
CLIENT
NO.DKBA/TK1122
DT.01.11.2021, LC NO.
5522617470 DT. 09.11.2021,
DPD-AEO T2
2021 0 GRADE SG-8 P.INVOICE NO: LTD 0
PI-TY-PVC-21-035 DT:
01.09.2021.LC NO:
1394FLC210775 DT:
03.09.21 DPD-AE
01.09.21, LC NO.
1394FLC210775 DTD
67 | P a g e
03.09.21 DPD-AEO
031 DT.11.08.2021, LC
NO.529010974147-L
DT.16.08.2021,
11.08.21, LC NO.
529010974147-L DTD
16.08.21 DPD-AE
INVOICE NO. PI-TY-PVC-21-
034 DT.30.08.2021, LC
NO.1394FLC210760
DT.31.08.20
035 DT. 01.09.2021, LC NO.
1394FLC210775 DT. 03.09.
035 DT.01.09.2021, LC
NO.1394FLC210775
68 | P a g e
DT.03.09.202 INV. EZ
6673802
035 DT.01.09.2021, LC
NO.1394FLC210775
DT.03.09.2021,
035 DT.01.09.2021, LC
NO.1394FLC210775
DT.03.09.2021
PI-TY-PVC-21-035
DT:01.09.21.LC
NO:1394FLC210775
DT:03.09.21 DPD-AEO T2
PI-TY-PVC-21-035
DT:01.09.21.LC
NO:1394FLC210775
DT:03.09.21 DPD-AEO T2
69 | P a g e
CPVC RESIN QUARTERLY IMPORT DATA
January-March 2021: 53,98,800 (KGS), 5398.8 MT
Exporter Standard Unit Rate
BE Date HS Code Product Description Name Standard Qty (In KGS) INR Country of Origin
M S MITSUI
01-01-2021 39049010 CPVC RESIN H829F 3,52,000.00 137.73 United States
CO LTD
M S MITSUI
05-01-2021 39049010 CPVC RESIN H829 1,20,000.00 145.18 Japan
CO LTD
M S MITSUI
CO LTD
M S MITSUI
07-01-2021 39049010 CPVC RESIN H829 72,000.00 145.18 Japan
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
22-01-2021 39049010 CPVC RESIN H829 M S MITSUI 96,800.00 144.01 Japan
70 | P a g e
CO LTD
M S MITSUI
CO LTD
CPVC RESIN H829

MITSUI CO
27-01-2021 39049010 (DPD IMPORTER AEO- 2,88,000.00 144.01 Japan
LTD
T2)
CPVC RESIN H829

MITSUI CO
27-01-2021 39049010 (DPD IMPORTER AEO- 72,000.00 144.01 Japan
LTD
T2)
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
CPVC RESIN H829

MITSUI CO
11-02-2021 39049010 (DPD IMPORTER AEO 1,44,000.00 143.91 Japan
LTD
T2)
CPVC RESIN H829

MITSUI CO
11-02-2021 39049010 (DPD IMPORTER AEO 96,000.00 143.91 Japan
LTD
T2)
M S MITSUI
CO LTD
71 | P a g e
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
CPVC RESIN H829

MITSUI CO
22-02-2021 39049010 (DPD IMPORTER AEO 1,21,000.00 143.72 Japan
LTD
T2)
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
M S MITSUI
CO LTD
72 | P a g e
Z To Order
09-03-2021 39049010 CPVC RESIN H727 - 72,000.00 147.80 Japan
NA
Z To Order United States of

13-03-2021 39049010 CPVC RESIN H829F - 1,32,000.00 136.72
NA America
Z To Order
13-03-2021 39049010 CPVC RESIN H727 - 1,68,000.00 147.80 Japan
NA
Z To Order
16-03-2021 39049010 CPVC RESIN H829 - 1,68,000.00 144.11 Japan
NA
Z To Order
18-03-2021 39049010 CPVC RESIN H829 - 72,000.00 144.11 Japan
NA
CPVC RESIN H829F

MITSUI CO United States of
19-03-2020 39049010 (DPD IMPORTER AEO 2,42,000.00 137.36
LTD America
T2)
April-June 2021: 47,73,400 (KGS), 4773.4 MT


CO LTD
02-04-2021 39049010 CPVC RESIN H727 M S MITSUI 1,68,000.00 148.30 Japan

CO LTD

CO LTD
73 | P a g e
CO LTD

CO LTD

CO LTD

CO LTD
08-04-2021 39049010 CPVC RESIN H829F M S MITSUI 1,10,000.00 137.18 United States of
CO LTD America

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD
74 | P a g e
CO LTD

CO LTD
26-04-2021 39049010 CPVC RESIN H829 MITSUI CO 1,21,000.00 148.49 Japan

(DPD IMPORTER AEO LTD
T2)
26-04-2021 39049010 CPVC RESIN H829 MITSUI CO 1,21,000.00 148.49 Japan

(DPD IMPORTER AEO LTD
T2)

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD
75 | P a g e
CO LTD

CO LTD

CO LTD

CO LTD

CO LTD

CO LTD
76 | P a g e
July-September 2021: 5,929,000 (KGS), 5,929 MT

01-07-2021 39049010 CPVC RESIN H727 MS 120,000.00 149.10 Japan

MITSUI CO
LTD
03-07-2021 39049010 CPVC RESIN H829F MS 110,000.00 139.31 United States

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD
77 | P a g e
MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

INV. EZ 6673803 MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
78 | P a g e
LTD

MITSUI CO
LTD

INV. EZ 6673809 MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
79 | P a g e
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
80 | P a g e
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
LTD

MITSUI CO
81 | P a g e
LTD
October-December 2021: 5,852,000 (KGS), 5852 (M.T)

BE Date HS Code Product Exporter Name Standard Standard Unit Rate Country of
Description Qty (In INR Origin
KGS)
2021
2021
2021
2021
2021
2021
2021 INV. EZ 6673809
2021
82 | P a g e
2021
2021
2021
2021
2021
2021
2021
2021
2021
2021 INV. EZ 6673803
2021
2021 CONTRACT
NO.B55E-21-6185
DT.02.09.2021 , LC
83 | P a g e
N
O.529010978483-L
DT.07.09.2021 ,
DPD-AEO T2
CLIENT
2021 CONTRACT NO.
B55E-21-6185 DTD
02.09.21 , LC NO.
529010978483-L
DTD 07.09.21 ,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6185
DT.02.09.2021 , LC
N
O.529010978483-L
DT.07.09.2021 ,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6167
DTD 28.07.21 , LC
NO.
0958ILF210008476
DTD 29.07.21 , DPD
84 | P a g e
-AEO T2 CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021 , LC
NO.
560LC01212980001
DT. 26.10.2021 ,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6185
DT.02.09.2021 , LC
NO.529010978483-
L DT. 07.09.2021 ,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021 , LC
NO.
560LC01212980001
DT. 26.10.2021 ,
DPD-AEO T2
CLIENT
2021 CONTRACT
85 | P a g e
NO.B55E-21-6167-
DTD 28.07.21 , LC
NO.
0958ILF210008476
DTD 29.07.21
DPD-AEO T2
CLIENT
27-11- 39049010 CPVC RESIN H829 , M S MITSUI CO LTD 72,600.00 153.96 Japan
2021 CONTRACT NO .
B55E-21-6198 DT
05.10.2021 , LC NO
0958ILF210011765
DT. 13.10.2021 ,
DPD-AEO T2
CLIENT INV. EZ
6673806
2021 CONTRACT
NO.B55E-21-6198
DT.05.10.2021 , LC
NO.0958ILF210011
765 DT. 13.10.2021
, DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
86 | P a g e
DT. 26.10.2021,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6185
DTD 02.09.21, LC
NO.529010978483-
L DTD 07.09.21
DPD -AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6198
DT.05.10.2021, LC
NO.0958ILF210011
765 DT.
13.10.2021, DPD-
AEO T2 CLIENT
2021 CONTRACT NO.
B55E-21-6185
DT.02.09.2021, LC
NO.529010978483-
L DT.07.09.2021,
DPD-AEO T2
CLIENT
2021 CONTRACT
87 | P a g e
NO.B55E-21-6168
DTD 28.07.2021, LC
NO.
0958ILF210008801
DTD 05.08.2021
DPD-AEO T2
CLIENT
2021 CONTRACT NO .
B55E-21-6185 DT.
02.09.2021, LC NO
529010978483-L
DT.07.09.2021,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT.
26.10.2021 ,DPD-
AEO T2 CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
88 | P a g e
DT.
26.10.2021,DPD-
AEO T2 CLIENT
INV. EZ 6673808
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT.
26.10.2021,DPD-
AEO T2 CLIENT
10-12- 39049010 CPVC RESIN M S KEM ONE 50,000.00 170.78 China

2021 LUCALOR PVCC
RH8067 GRVS
PROFORMA
INVOICE NO.
205044986 DT.
22.10.2021 , DPD-
AEO T2 CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT.
26.10.2021,DPD-
89 | P a g e
AEO T2 CLIENT
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT. 26.10.2021,
DPD-AEO T2
CLIENT
2021 CONTRACT NO.
B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT. 26.10.2021,
DPD-AEO T2
CLIENT INV. EZ
6673805
2021 CONTRACT NO.
B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT. 26.10.2021,
DPD-AEO T2
CLIENT
90 | P a g e
2021 CONTRACT
NO.B55E-21-6199
DT.12.10.2021, LC
NO.
560LC01212980001
DT. 26.10.2021,
DPD-AEO T2
CLIENT
2021 CONTRACT
NO.B55E-21-6168
DTD 28.07.2021,LC
NO.0958ILF210008
801 DTD
05.08.2021 DPD -
AEO T2 CLIENT
Table 10
Quotation Table
Company Name Product Size (inch) Selling Price (INR)

Astral Astral Pro+ CPVC Socket (Plain) 1/2 inch 11
Supreme Supreme Lifeline CPVC Socket 1/2 inch 9
Ashirvad CPVC Socket 1/2 inch 13

Astral Supreme Lifeline CPVC Pipe SDR 13.5 1/2 inch 94
Supreme Astral Pro+ CPVC Pipe SDR 13.5 1/2 inch 98
Ashirvad Ashirvad Flowguard Plus CPVC Pipe SDR 13.5 1/2 inch 120
91 | P a g e

Astral Supreme Lifeline CPVC Pipe SDR 11 1/2 inch 108

Supreme Astral Pro+ CPVC Pipe SDR 11 1/2 inch 111
Ashirvad CPVC Pipe SDR 11 1/2 inch 118

Astral CPVC Pipe 3/4 inch 245
Supreme CPVC Pipe 3/4 inch 230
Ashirvad CPVC Pipe 3/4 inch 260

Astral Supreme Lifeline CPVC Pipe SDR 13.5 3/4 inch 150
Supreme Astral Pro+ CPVC Pipe SDR 13.5 3/4 inch 155
Ashirvad Ashirvad Flowguard Plus CPVC Pipe SDR 13.5 3/4 inch 190

Astral Supreme Lifeline CPVC Pipe SDR 13.5 1 inch 208
Supreme Astral Pro+ CPVC Pipe SDR 13.5 1 inch 227
Ashirvad Ashirvad Flowguard Plus CPVC Pipe SDR 13.5 280

Astral Supreme Lifeline CPVC Pipe SDR 11 3/4 inch 163
Supreme Astral Pro+ CPVC Pipe SDR 11 3/4 inch 168

Astral Supreme Lifeline CPVC Pipe SDR 11 1 inch 245
Supreme Astral Pro+ CPVC Pipe SDR 11 1 inch 255

Astral CPVC Elbow 1/2 inch 11
Supreme CPVC Elbow 1/2 inch 9
Ashirvad CPVC Elbow 1/2 inch 14

92 | P a g e
Astral 20 mm Dia. 5 Mtr. Length CPVC Pipes SDR 11 5 Mtr 278

Supreme 20 mm Dia. 5 Mtr. Length CPVC Pipes SDR 11 266
Ashirvad 20 mm Dia. 5 Mtr. Length CPVC
Ashirvad Pipes SDR 11 5 Mtr 302

Astral 25 mm Dia. 5 Mtr. Length CPVC Pipes SDR 11 497
Supreme 25 mm Dia. 5 Mtr. Length CPVC Pipes SDR 11 465
Ashirvad 25 mm Dia. 5 Mtr. Length CPVC
Ashirvad Pipes SDR 11 530

Astral SWR Pipes 4 inch 610
Supreme SWR Pipes 4 inch 530
Ashirvad SWR Pipes 4 inch 650
Table 11
Plastic Pipe Contribution to Revenue
Year Revenue Contribution of Plastic Pipes in %
2014 396,190 54.98
2015 425,467 53.26
2016 297,484 54.86
2017 446,177 56.12
2018 496,603 55.66
2019 551,127 58
93 | P a g e
2020 561,167 63
Table 12
Company Selling Price (INR) Selling Price (INR)

Name Particulars Size (inch) May 2021 November 2021
Hindware Elbow 3/4" 14 18
Astral Elbow 3/4" 15 17
Prince Elbow 3/4" 13 15
Hindware CPVC Pipe 3/4" (50*3) 195 215

Astral CPVC Pipe 3/4" (50*3) 210 217
Supreme CPVC Pipe 3/4" (50*3) 198 213
Prince CPVC Pipe 3/4" (50*3) 195 215
Hindware CPVC Pipe 1" (25*2) 310 335

Astral CPVC Pipe 1" (25*2) 325 357
Prince CPVC Pipe 1" (25*2) 300 327
Hindware PVC Pipe 3/4" (50*3) 195 219

Astral PVC Pipe 3/4" (50*3) 210 228
Supreme PVC Pipe 3/4" (50*3) 198 232
Prince PVC Pipe 3/4" (50*3) 195 235
Hindware PVC Pipe 1" (25*2) 265 298

Astral PVC Pipe 1" (25*2) 280 315
94 | P a g e
Prince PVC Pipe 1" (25*2) 264 302
95 | P a g e

Supreme Industries Limited - 15 January 2021

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Chapter 2: Methodology and Information Sources

2. Brokerage reports on the industry

4. Call transcripts of the management and share brokers

5. Various blogs and other information sources

Besides the above information sources, we have also conducted:

1. Site visits to the company’s principal business location

Chapter 3: Plastic and PVC Pipe Industry in India

Exhibit 1: Growth of Indian Plastic Pipes over the Years

Market Size (INR Bn.)

Stimulus Package Amount (INR bn) % Of GDP

FY 2020 (INR in CR.) FY 2025 E (INR in Cr.)

HDPE; 4500 HDPE; 7700

Source: Prince Pipes RHP, RSec Research

Source: Prince Pipes RHP, RSec Research

- COVID related economic slow down

- Steep rise in the PVC resin prices

Chapter 4: Key Players in the PVC and CPVC Market Segment

The main players in The Plastic Pipe Industry:

Revenue Growth (INR in

Supreme Industries Astral Finolex Prince Pipes Ashirvad

1000 898 937 902 900

Supreme Astral Finolex Prince

Please refer to Annexure for table 1

EBITDA Growth (INR in Crores)

Supreme Astral Finolex Prince Pipes Ashirvad

EBITDA Growth various players quarterly basis

EBITDA Growth (INR in Crores)

S upreme Astral Finolex Prince

Please refer to Annexure for Table 2

EBITDA MARGIN percentage (YEARLY)

Supreme Industries Astral Finolex Prince Pipes Ashirvad

EBITDA MARGIN percentage (QUARTERLY)

Supreme Astral Finolex Prince

Please refer to Annexure Table for 3

Chapter 5: Supreme Industries Limited

Incorporation Setting up new manufacturing factory facility

1942 1998 1985 2000 1989 1992

Tied Up with Schoeller International

The Company has become a regular

supplier of crates of coca cola

a joint venture company named Kumi Supreme India Private Ltd

first Indian company to

launch injection moulded pallets

2018 2015 2008 2007 2003 1995

at Gadegaon complex in Maharashtra

Siltap Chemicals Limited merged with Supreme Industries Limited.

Key Operational Matrics in %

Revenue Growth Y-O-Y Production Growth (Y-O-Y)

Please refer to Annexure for table 4

Volume in Metric Ton

80,000 74992 76759 75997

30,000 24792 24627

Supreme Astral Finolex Prince Pipes

Exhibit 8: Plastic Pipes Sales (In M.T.)

Plastic Pipes Sales (In M.T.)

150,000 103,990 132,200 138289

Supreme Astral Finolex Prince

Please refer to Annexure for table 5

Supreme Astral Finolex

Please refer to Annexure for table 6

2. New Products introduction