Apollo Pipes Limited (APL) has declared a significant strategic expansion into the ceramic tiles market with the incorporation of a full-fledged wholly owned subsidiary, Apollo Ceramics Limited (ACL). The subsidiary has been able to successfully acquire profit-sharing privileges and a controlling share in Mazzini Tiles LLP located in Morbi. The aggregate consideration for the cash transaction is a total of ₹40.42 crore. With this acquisition, Apollo Pipes immediately expands its operational footprint into other parts of the building materials value chain that supplement its core piping offerings.
Target performance and operational capacity
The transaction has been conducted on arm’s length basis basis as prescribed in the SEBI Listing Regulations, which eliminates the possibility of a related party transaction. The promoters and group companies of Apollo Pipes are on no terms of precedence to Mazzini Tiles LLP.
Singhi Advisors served as the exclusive M&A advisors for the transaction and provided financial advisory services in connection with the corporate acquisition. Mazzini Tiles LLP has a well-established factory setup in Morbi, Gujarat, which is considered one of the key manufacturing centres for ceramic products in India.
The production facility has modern advance machines and an installed manufacturing capacity of 72 lakh square meters per year. The business concentrates on production of Polished Glazed Vitrified Tiles (PGVT) and serves an increasing number of local customers and a burgeoning export customer base in global markets.
In terms of financial performance, Mazzini Tiles LLP has showcased robust growth in revenue in the run-up to the transaction. The product line and operational revenue stream provide Apollo Pipes immediate market access and commercial scale in the ceramic market.
Investment framework and strategic acquisition
This strategic acquisition is also facilitated by a comprehensive investment envelope of up to ₹300 crore that Apollo Pipes has already secured as part of its tiles and ceramics expansion plan, which is approved by the Board of Directors.
The pre-approved capital allocation framework aims to enable a multi-faceted growth business plan centered around manufacturing, contract manufacturing arrangements, trading, marketing, and rolling out a large-scale distribution of tiles, ceramics, and allied products.
In this deal, Apollo Pipes wants to use its important internal knowledge of the distribution of building materials and customer demand. The company aims to develop a scalable, highly differentiated platform in the ceramic tiles segment by strengthening the performance at the Morbi plant, expanding its dealer network, expanding export growth to international markets, and making further selective acquisition bids based on market opportunities.
This acquisition will enable Apollo Pipes to expand into a large and growing market. The domestic ceramic tile industry presents an opportunity of ₹62,000 crore to ₹65,000 crore because of high residential construction, commercial development, and renovation activities across the country. Through this 76% acquisition, Apollo Pipes now occupies a strong growth platform throughout the building materials spectrum.
Conclusion
Apollo Pipes has recently made a monumental stride in its growth with the acquisition of a 76% controlling stake in Mazzini Tiles LLP, amounting to ₹40.42 crore, through Apollo Ceramics Limited. Apollo Pipes becomes a part of the ceramic tiles market with an immediate operational footprint through a 72 lakh square meter manufacturing capacity in Morbi, Gujarat, and an entity with a turnover of ₹87.15 crore in FY26. With a Board-approved investment framework of ₹300 crore, the company is well prepared to harness its channel strength and build on this by increasing coverage and creating value over time in building materials.
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