Astral to Begin In-House Manufacturing of CPVC Resin

Astral has announced a strategic foray into backward integration by beginning in-house manufacturing of CPVC resin—the key raw material in its plumbing and piping operations.

Following three years of dedicated R&D, Astral has successfully developed the capability to produce CPVC resin that meets international quality standards while maintaining competitive production costs. This marks a significant step toward strengthening supply chain control and enhancing cost efficiency.

To execute this initiative, Astral has signed an agreement with Nexelon Chem to acquire an 80% equity stake at a par value of Rs 80,000. The total project investment is estimated at Rs 150 crore, with a planned annual production capacity of 40,000 metric tonnes. Astral will contribute approximately Rs 120 crore (its 80% share) in a phased manner over the next 12 months.

The transaction is expected to be completed within 60 days, with commercial production slated to commence by Q2 of FY 2026–27.

Operating across two primary business verticals—Plumbing (pipes, fittings, water tanks, bathware) and Paints & Adhesives (formerly Resinova, Seal It, and Astral Coatings – Gem)—Astral’s backward integration move positions the company to enhance product quality, secure raw material supply, and reinforce its leadership in the building materials sector.

News by Rahul Yelligetti.