New Delhi, Apr 13 (PTI) Sloan, Illinois, US-based leading plumbing systems maker, has acquired a controlling stake in the homegrown Essel Bath Fittings, to amplify its presence in the fast-growing Indian bath fittings market.
The company did not declare the financial details but said the investment marks a significant milestone in Sloan’s India strategy, strengthening its local manufacturing footprint and positioning India as a critical driver of its global growth.
The move is aimed at strengthening Sloan’s footprint in India’s fast-growing premium and mid-segment bath fittings space, by leveraging Essel’s domestic manufacturing capabilities and distribution network to tap into rising demand driven by urbanisation and housing growth, said its India Managing Director, Anil Sawhney.
Terming the move as "complementary partnership", Sawhney said it will help the company to work with two levers of growth in the Indian market, where it is "going to cater for the premium as well as the aspirational segment of Indian consumer".
According to industry experts, this deal will help the combined entity corner around 10 per cent of the Indian bath fittings market over the next five years, as the market is estimated to grow by 7–10 per cent.
Sawhney further said Sloan is not looking at India from the trading point only. It is also working to expand its exports from India, with plans to make it a manufacturing hub.
"We are actually looking at India as making it a manufacturing hub. So, we want to make products in India and sell them in India and outside the world as well," he said.
India is one of the fastest-growing markets for Sloan. It expects synergy in retail operations as well; it will get "access to channel and geography, where maybe our growth will become much faster than anticipated," he said.
"In terms of Sloan India, we certainly look at our revenue going 5 to 6, 7 times in the next 5 to 7 years. As we said, we have been substantially growing in the Indian market at around 50 per cent annually, in the last 4 to 5 years," he said, adding "Essel is also going to be 2 to 3 times its size, what it currently is in the next maybe 5 to 8 years".
As part of the transaction, Essel Bath Fittings will continue to operate under its existing brand, while Sloan will remain positioned as a premium brand focused on high-end institutional, commercial and residential applications.
According to Sawhney, there is a shift happening in the Indian fittings market with the emerging middle class in the country, which is now moving "from the unorganised players to the organised ones".
Through this partnership, integration of Sloan’s technology, innovation, and design capabilities will flow into the Indian market.
"We are looking at making it a make in India story for Sloan and Essel both. This partnership gives us access to a large manufacturing facility in Derabassi, Punjab, where we would be expanding our portfolio, and Essel gets the expertise of Sloan to really take the business forward. We certainly see this, both the companies growing multifold in times to come," he added.
Presently, 20 per cent of Sloan India comes from exports to markets like the Middle East, Vietnam, and Malaysia.
"We are also now eyeing Australia and New Zealand as well. Same, Essel also has presence in countries like Nepal, Bhutan and Bangladesh," said Sawhney.
Over the domestic market, he said the affluent class in India, which is around 80 million people, is going to be 160 million in the next 5 years. The same is happening with the middle class and the emerging middle class.
"People are now more quality-conscious than just price-conscious. And that's where brands like Essel come into play with the expertise of Sloan. Certainly, we will cater to that particular segment of consumer," said Sawhney.