Apollo Pipes plans Rs 300 crore investment in Mazzini Tiles entry

Apollo Pipes Limited plans an overall Rs 300 crore investment in tiles and ceramics after acquiring a 76% stake and profit-sharing rights in Mazzini Tiles LLP for Rs 40.42 crore. The Morbi-based platform provides 72 lakh square metres of annual polished glazed vitrified tile capacity, domestic distribution and export exposure.

What has Apollo Pipes acquired in Mazzini Tiles?

Apollo Pipes has acquired a 76% stake and profit-sharing rights in Mazzini Tiles LLP through Apollo Ceramics Limited for Rs 40.42 crore. The presentation separately identifies Rs 300 crore as the overall investment plan for the tiles and ceramics entry, but does not disclose a timetable, funding structure or allocation for the balance of that plan.

The transaction extends Apollo Pipes into a building-material category beyond pipes and fittings. Apollo Pipes has more than 3,000 product offerings across categories including chlorinated polyvinyl chloride, or CPVC, unplasticised polyvinyl chloride, or uPVC, high-density polyethylene, or HDPE, and PVC-O pipes. In its November 5, 2026 Q2FY27 results communication, management described the Mazzini Tiles entry as a considered extension of the group’s building-material journey.

What operating platform does Mazzini Tiles provide?

Mazzini Tiles provides Apollo Pipes with an operating Morbi, Gujarat manufacturing facility for polished glazed vitrified tiles, or PGVT, with installed annual capacity of 72 lakh m². The source characterises the business as an operating platform with a PGVT portfolio, domestic distribution and export presence, rather than a proposed greenfield tile project.

Management said Mazzini Tiles brings modern manufacturing capability, an established domestic network and a growing export presence. Apollo Pipes identifies higher utilisation, wider dealer reach and exports as the platform’s growth priorities. However, the presentation does not report Mazzini Tiles’ current output, revenue, profitability, dealer count, export share, debt or capacity utilisation, leaving no disclosed operating baseline for the 72 lakh m² facility.

Apollo Pipes’ existing pipe manufacturing footprint comprises seven facilities at Dadri, Varanasi and Sikandrabad in Uttar Pradesh, Ahmedabad in Gujarat, Tumkur in Karnataka, Raipur in Chhattisgarh and Mahagaon in Maharashtra. Its pipe business has more than 1,000 channel partners, whereas the presentation gives no comparable distribution figure for Mazzini Tiles.

How does Mazzini Tiles fit Apollo Pipes’ wider expansion plan?

Mazzini Tiles fits Apollo Pipes’ strategy of adding building-material categories while expanding its plastic-pipe capacity from 2.40 lakh tonnes to 2.88 lakh tonnes within two years. The pipe capacity plan comprises 18,000 tonnes at the greenfield Varanasi plant by FY27, 2,000 tonnes of window and door profile capacity by FY27, and 28,000 tonnes of brownfield expansion.

Apollo Pipes has set a target of around 25% or more revenue growth in FY27 and a revenue compound annual growth rate, or CAGR, of more than 25% over the next three years. These are management targets rather than reported outcomes. For Mazzini Tiles, the disclosed plan is centred on raising utilisation, expanding dealer coverage and increasing exports from the existing Morbi operation.

The Mazzini Tiles investment follows Apollo Pipes’ acquisition of a 61.94% stake in Kisan Mouldings on March 26, 2024 for Rs 156 crore. Kisan had approximately 58,000 tonnes of capacity and more than 300 dealers, according to the presentation. Apollo Pipes has also partnered with Lubrizol Advanced Materials for CPVC resin using TempRite technology for advanced plumbing solutions.

What was Apollo Pipes’ financial position when it announced the tile entry?

Apollo Pipes reported consolidated Q2FY27 revenue of Rs 309.60 crore, up from Rs 235.70 crore in Q2FY26, as sales volume rose to 24,501 tonnes from 21,685 tonnes. EBITDA, or earnings before interest, tax, depreciation and amortisation, declined to Rs 11.50 crore from Rs 15.80 crore, and the EBITDA margin fell to 3.7% from 6.7%.

For H1FY27, Apollo Pipes reported revenue of Rs 605 crore, compared with Rs 511 crore in H1FY26, while EBITDA declined to Rs 15 crore from Rs 36 crore. The company recorded a Rs 6.60 crore loss after minority interest in H1FY27, compared with a Rs 9.80 crore profit a year earlier. This shows that revenue and volume rose while reported profitability was lower over the half-year comparison.

At H1FY27, net debt was Rs 98 crore, compared with Rs 40 crore at FY26-end, while cash and bank balances were Rs 19 crore against Rs 84 crore at FY26-end. Operating cash flow was Rs 36 crore in H1FY27, capital expenditure was Rs 45 crore and investments were Rs 39 crore, resulting in negative free cash flow of Rs 55 crore. Management said it intends to fund business expansion from internal cash-flow generation without leveraging the balance sheet.

What milestones will show progress at Mazzini Tiles?

Progress at Mazzini Tiles will be measured by utilisation, dealer reach and exports, because Apollo Pipes identifies these three items as its tile-business priorities. The 72 lakh m² annual PGVT capacity establishes the scale of the operating base, but the presentation does not provide a current production figure, a utilisation percentage or a separate margin target for the tile operation.

Management’s H2FY27 priorities for Apollo Pipes are to accelerate volume growth, strengthen product mix and improve profitability while maintaining financial discipline. Management expects gradual demand recovery and more stable PVC prices to support momentum in the wider business, but it does not quantify Mazzini Tiles’ expected revenue, earnings contribution or timing of additional tile investment.

Apollo Pipes is pursuing the tile integration alongside pipe-capacity expansion and the Kisan Mouldings business. In Q2FY27, the standalone Apollo Pipes business excluding Kisan reported Rs 14 crore of EBITDA on Rs 253 crore of operating income, while Kisan reported a Rs 2 crore EBITDA loss on Rs 65 crore of operating income. The separate disclosure shows that the company is managing expansion initiatives while seeking improved profitability across existing operations.

Conclusion

Apollo Pipes is entering ceramic tiles through an operating platform rather than building capacity from the ground up. Its Rs 40.42 crore acquisition secures 76% of Mazzini Tiles and access to a 72 lakh m² Morbi PGVT facility, while the wider Rs 300 crore plan signals further intended investment in tiles and ceramics. The transaction adds a building-material category as pipe volumes and revenue increased in Q2FY27, though EBITDA declined year on year.

The next disclosed milestones are Mazzini Tiles’ utilisation, dealer-network expansion and export growth. Investors can also monitor Apollo Pipes’ plan to increase plastic-business capacity to 2.88 lakh tonnes within two years, including 18,000 tonnes at Varanasi by FY27, and management’s stated intention to finance expansion through internal cash-flow generation without leveraging the balance sheet.