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Screener Research Unlisted Startup Funding IPO

Aditya Sharma    

Mumbai, India

I am a MBA students and simultaneously reading on capital market to get some knowledge on fundamental research where I more focus on business model, opportunity size of the industry and their related parameters who help me out to find out great businesses for the investment. Nevertheless, I always look forward to learn about grow further into the same.

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Contributor since: 2022







Astral Limited

A Business Analysis

About Astral

Astral Pipes was established in 1996 with the aim of manufacturing plumbing and drainage systems in India. Today, we cover the needs of millions of households, while adding extra mileage to India’s developing real estate fraternity with the hallmark of unbeaten quality.

Astral Pipes aims to be a truly global, high-performing organisation delivering quality products and services to its customers and attain leadership position in the industries we operate in.

Our values are aimed at creating an innovative, high-performance organization commited towards providing quality products to our customers. These values define our conduct with customers, partners, shareholders, employees, and society.

Business Model

Products Pipeline - Providing One Stop Solution

Pipes (77% of the Total Revenue)

Water Tanks

Adhesives and Sealants (23% of the total revenue)

Leveraging The Core Fundamentals

1. Experienced Leadership and Qualified Managerial Personnel:

Company's management comprises professionals with extensive industry knowledge and vast as well as varied experience. Their experience in numerous facets of the industry provides the Company with the necessary industry knowledge and keen insight, which they can leverage for future growth and expansion. In addition, leadership strives to preserve the Company's founding vision and a sense of purpose, leading to an innovation-led and high-performance culture that propels it onto new growth trajectories.

2. Large Manufacturing Footprint and Robust Distribution Network:

Company's distribution network of 1,80,000+ dealers and 2,535+ distributors gives them a strong competitive advantage. The company have an in-house marketing team to service this extensive network of dealers and distributors. Many of these dealers and distributors have been affiliated with the Company for decades. Through the years, distribution prowess and long-standing relationships with their partners have contributed to their market dominance. The company has been strong in the West part of the country in the past. In recent years, the company has improved its position in the south and east with new plants as a part of the decentralisation strategy. Pipes and fittings are a bulk item with high logistics costs. As a result, a wide manufacturing footprint is needed to provide high service levels to distributors and maintain low cost of operation.

3. Marketing and Branding Acumen:

Over the last few years, the Company has developed a strong brand. Astral's name is synonymous with quality and a track record of exceeding customer expectations. The Company has a strong legacy in the industry, and in recent years it has strengthened its brand positioning through sustained investments in marketing and brand promotional activities. The emphasis has been on increasing brand awareness and customer loyalty through innovative promotions and marketing via both digital and traditional channels.

4. Robust Financials:

The company's balance sheet is robust, and its profitability has steadily increased over the years. Despite unprecedented inflation and a challenging macroeconomic environment in FY22, the company's financial performance remained strong. The financial position remains solid, with a net cash position of over ₹ 5,566 million and the industry's shortest working capital cycle. The Company continues to be one of India's most profitable piping solutions companies. For the eighth consecutive year, the profitability has grown. The Company has favourable return ratios, and with most of the capital expenditures to be completed by FY23, these metrics are expected to further
improve over time. Our robust balance sheet and cash flows have sustained us through various cycles, and we are committed to maintaining our disciplined capital management strategy.

5. Strong Innovation Capabilities:

Innovation remains one of Astral's key strengths, allowing the company to achieve product differentiation and provide consumers with a unique value proposition. The company's commitment to innovation to introduce new products and services and continuously improve customer engagement have led to sustained investments in manufacturing, research & development, information technology and sustainability. The allocation of capital to all of these needs has ensured that these investments advance the business growth objectives and generate a sustainable return on investment for shareholders.

6. Leadership in Piping Solutions:

Astral is one of the largest piping solutions companies in India, catering to the needs of the real estate, infrastructure, and agricultural industries with various product offerings. Our state-of-the-art manufacturing facilities respond to the need for operational synergies and the ever-changing demands of our customers. The company intends to leverage its strengths, scale, and learnings in the piping business and implement them in the newer product categories to rapidly scale them.

Company's Manufacturing Facilities

Strategic Presence

Strategic Roadmap for Growth Acceleration

1. Enhance Brand Equity:

  • Astral enjoys a long-standing relationship with notable celebrity figures and marquee sporting events, which has increased brand recognition and top-of-mind recall, thereby enhancing brand equity. In order to increase brand value, the company will continue to strengthen its existing partnerships and forge new ones. Additionally, the company will invest in marketing efforts across both traditional and modern channels in order to engage with channel partners, influencers, and consumers.

2. Strengthen the Dealer & Distribution Network:

  • Our business is accelerated by partnering with a vast network of dealers and distributors. During the year we significantly expanded our dealer network to 1,80,000+ from 1,63,000 in FY21.
  • To further strengthen our network, we engaged in several network engagement activities, including regular dealer and influencer gatherings and the distribution of reward points across various promotional schemes and offers. Our loyalty programme at Astral is the most robust and transparent in the industry, allowing our dealers and influencers to access the reward systems through our mobile application.

3. Expand the Portfolio of Offerings by Leveraging Existing Strengths

  • In order to accelerate growth, the Company will continue to launch new products and enter categories that can benefit from Astral’s brand and channel network. In addition, the Company intends to utilise its distribution network in order to market these more recent products and cross-sell to its current clientele.

4. Strong Innovation Capabilities

  • Over the last few years, the Company has strategically driven its investments towards its decentralisation strategy, the efforts of which should start to bear fruit now.
  • As we advance, the focus will be to drive asset utilisation across all facilities, which in turn will help lower the per-unit operating costs.
  • As the supply side situation normalises, the Company will also bring down its inventory levels, further optimising the working capital requirements. These efforts should help the Company further enhance its return metrics.

5. Build Future Ready Talent Pool 

  • In keeping with our people-first philosophy, our focus during the past few year was to ensure safety and holistic well being of team members. Going forward, we will continue to empower our people and enable their growth journey by providing challenging, enriching and fulfilling opportunities to maximise their potential.
  • At Astral we are continuously investing in building critical organisational capabilities and a high performing team force.


Industry Analysis

Plastic Pipes

Demand for building materials such as paint, sanitaryware and faucets, ceramic, plywood, and laminates is correlated to the real estate market’s recovery. In contrast, a significant portion of pipe demand comes from irrigation, urban infrastructure, and sanitation projects, allowing for faster growth than in other building material sectors. Because of increased end-use sector investments such as irrigation
and WSS, the plastic pipes industry has historically grown faster than the GDP. In addition, increased awareness, adoption, and replacement of metal pipes with plastic pipes have also aided growth.

The market for plastic pipes is valued at approximately ₹ 300 billion, with organised players accounting for approximately 65% of the market. 50-55% of the industry’s demand is accounted for by plumbing pipes used in residential and commercial real estate, 35% by agriculture, and 5-10% by infrastructure and industrial projects.

The Market For Plastic Pipes

Due to the government’s emphasis on cleanliness and sanitation, affordable home building, and replacement and substitution demand, the domestic plastic pipes market grew at a CAGR of 10 to 12% between FY15 and FY20. Demand is anticipated to expand at a CAGR of 12 to 14% between FY21 and FY25, driven by increased investment in WSS projects, the substitution of metal pipes with polymer pipes, and replacement demand.

The Domestic Plastic Pipes Market

Plastic pipes have become a crucial infrastructure component for transporting and distributing water, oil, gas and other commodities. As a result, plastic pipes are being rapidly installed in a vast array of applications, such as irrigation, domestic plumbing, sewerage, and industrial
applications. Depending on the application, plastic pipes, galvanised iron pipes, cement pipes, ERW pipes, and other materials are utilised. However, plastic pipes are gaining popularity and have become the material of choice due to the easy availability of raw materials, ease of use, lightweight, ease of installation, longer shelf life, and lower cost.

Plastic Pipes Are Made Of Different Types Of Polymer

The Four Key Types Are:


With unorganised regional firms servicing 70% of the industry, water storage tanks in India is a ₹ 45-50 billion market opportunity growing at a 5-6% CAGR. The rationale for regional players’ domination in this category is the product’s voluminous nature, which adds high freight costs during transit. However, the major Indian pipes businesses’ expanding their manufacturing base, which has resulted in pan-India presence with overlapping effective distribution networks, bodes well for the prominent pipe players. With increasing building activity, growing concerns about water conservation, a spike in population, increased government regulation on wastewater, and ageing water infrastructure, demand for plastic storage tanks is expected to remain healthy. Furthermore, the tank distribution network overlaps with the pipe distribution network, making it a logical extension for any pipe player.

50bn Industry Of Water Tanks Dominated By Unorganised Players

Demand Drivers:

Value Migration
One of the most significant shifts in the pipes business over the last decade has been the large-scale migration from metals to polymer-based pipes in most applications, which is especially true in the case of building industry’s plumbing and pipe applications. With the introduction of polymers such as CPVC for hot and cold-water plumbing, firefighting, and industrial fluid transportation, this progression has enabled for more research and development in specialised products by organised companies for specific applications. The CPVC industry, which presents a technological barrier to entry, is providing an opportunity for branded competitors to further enhance their market share.


The ₹ 134 - 136 billion (FY21) domestic adhesives and sealants market is segmented as follows:
1) Industrial adhesives and sealants; and
2) Consumer and bazaar adhesives.
The industrial division serves B2B industries such as packaging, footwear, paints, and automotive, among others. The retail section serves industries including furniture/woodworking, building construction, arts and crafts, and electrical fittings, among others.

Market Wise Split Of Adhesives

The ₹ 53-55 billion (FY21) consumer adhesives market grew at a CAGR of 8-10% between 2015 and 2020, propelled by the rapidly expanding furniture business and rising income levels, which led to a rise in interiors demand. In addition, enhanced building construction
investment also contributed to the growth. However, due to the pandemic-induced decline in construction activity, the market did contract in FY21. However, the decline was mitigated by increasing demand from the furniture market due to work from home, which increased demand for home furnishings. 


Management Of The Company

Mr. Sandeep P. Engineer - Chairman & Managing Director

Mr. Hiranand A. Savlani - CFO

Shareholding Pattern

Financial Highlights

Profit and Loss

Balance Sheet

Cash Flow

Margin Profile

Risk Profile:

  • Higher raw material prices
  • Competition risk
  • Currency volatility
  • Slowdown in housing demand


I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source - Company annual report, Disc - Not an recommendation. Do your own research before investing as it is for knowledge purpose only

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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