Acquisition Announcement: Infra.Market Secures Majority Control of Metro Group to Bolster Tile Business Operations
Infra.Market, a leading marketplace for construction materials and manufacturer of construction materials under private label brands, has announced its acquisition of a majority stake in Metro Group, a ceramic tiles manufacturing company, in a share swap deal. This move is expected to strengthen Infra.Market's foothold in the tiles industry.
Founded in 2016 and headquartered in Thane, Infra.Market has been on a growth trajectory, with over a 20% compound annual growth rate (CAGR) and consistent profitability. The company reported a net profit of INR 378 crore for FY24, a 144% increase from FY23, and revenue of INR 14,530 crore, a 23% year-on-year (YoY) growth.
Infra.Market's business model focuses on high-margin product categories like concrete, AAC blocks, and tiles, which are key segments in the ceramics and building materials industry. The company serves both B2B and business-to-retail customers through a nationwide network that covers over 250 manufacturing units and 10,000 retail touchpoints.
Infra.Market is not only a significant player in the domestic market but also one of the largest exporters of tiles from India, shipping primarily to markets in the US, Europe, and the Middle East. The company is expanding its manufacturing footprint internationally with a new facility set up in the Middle East, expected to start operations soon, while continuing to keep primary manufacturing operations in India.
Infra.Market's product portfolio includes ready-mix concrete, tiles, and paints under brands like RDC Concrete, Million Tiles, and Shalimar Paints. The company is recognized as the second-largest capacity holder in tiles across India and among the top three players by capacity in AAC (Autoclaved Aerated Concrete) blocks and tiles.
Despite its strong financial performance, credit rating agency India Ratings has downgraded Infra.Market's rating to BBB+ with a Negative Outlook due to concerns around its high dependence on debt refinancing, liquidity pressures, negative cash flow from operations in FY25, and stretched receivables at its Singapore subsidiary.
Infra.Market is planning an Initial Public Offering (IPO) with a potential value of $500 Mn to $700 Mn. The company has raised over $170 Mn so far this year, despite having cash and cash equivalents of INR 275.1 Cr in FY24.
Infra.Market's founders include Aaditya Sharda, who has been instrumental in the company's growth and expansion. The company operates in the Real Estate Tech sector and is positioned as a leading and rapidly growing player in India’s ceramics (tiles) sector. With its strong domestic capacity, export leadership, and strategic investments, Infra.Market is poised to cement its market position before its planned IPO around Diwali 2025.
Investing in the construction materials sector could be lucrative, given Infra.Market's steady growth in business, particularly in the tiles industry. Infra.Market's strategic acquisition of a majority stake in Metro Group and expansion plans, including an upcoming IPO, indicate significant opportunities in real-estate and investing, especially in high-margin product categories like tiles and AAC blocks.
