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Funds managed by Motilal Oswal Private Equity, India SME and Motilal Oswal Finvest Limited invest in Simpolo Group

Mumbai 02-Sep-2022

Funds managed byMotilal Oswal Private Equity, India SME and Motilal Oswal Finvest Limited invest inSimpolo Group


LeadingIndian financial institutions commits USD 66 Mn to support Simpolo Group inexpanding share and penetration in the fast growing luxury and premium tilesmarket in India by new investments in sales, services and latest technologyproduction facilities


Mumbai, 01 September 2022: India Business Excellence Fund – IV, afund managed and advised by MO Alternate Investment Advisors Private Limited(“MOPE”), along with India SME Investments - Fund I and Motilal Oswal FinvestLimited have completed an investment of USD 66 Mn in Simpolo Group, India’slargest luxury and premium tiles manufacturer. Simpolo Group includesthe flagship company Simpolo Vitrified Private Limited and Nexion InternationalPrivate Limited.


Established in 2008, Simpolo Vitrified Private Limited is the marketleader in the premium tiles segment in India, is promoted by first generationentrepreneur Jitendra Aghara and is based out of Morbi, Gujarat, one of thelargest tiles manufacturing districts in the world. Simpolo has a pan Indiapresence with a robust network of 1,100+ dealers and exports to over 50countries. Established in 2015, Nexion International Pvt. Ltd. is a JV betweenSimpolo promoters and the promoters and former owners of Emilceramica SpA, anItalian company established in 1961 and one of the global leaders in the luxurytiles segment.  On a consolidated basis, Simpolo and Nexion are thelargest player in the high-end segment of the Indian tiles market, withrevenues of ~USD 150 Mn in FY 2022.


Post completion of the transaction, the Group’s strategy – so far sosuccessful - will remain the same. Simpolo and Nexion will continue to operateas independent entities; Simpolo is the Brand of Choice in the Premium marketand Nexion is the leader in the Indian luxury segment.


The Group will use the financial resources, access to best practices andthe skills contributed by MOPE to capture market share and grow penetration inIndia and abroad, enabled by targeted investment in sales, advertising &promotions, and to expand the current capacity in tiles and sanitaryware,improve logistic and enhance customer service. Simpolo sanitaryware divisionwill also expand into the faucets sector.


Mr. Vishal Tulsyan, MD and CEO of MOPE said, “We are excited to back apassionate first-generation entrepreneur like Jitubhai, who has built a strongmanagement team along with forging a strong partnership with Italian promoters,who have created the strong and credible high-end brand Nexion. Simpolo has allthe right ingredients to be the most valuable tiles company in India in thecoming years.”


Mr. Jitendra Aghara, Group CMD, Simpolo Group said,We aredelighted to have MOPE as our partners. Both organizations share the commonvision to build one of the largest brands in the building materials industry inIndia. Over the last 15 years, we have created a differentiated presence in thepremium tiles segment in India, and MOPE’s investment underscores the strengthof our brand premiumness, product quality and deep distribution network. MOPE’sexperience to create leaders in the manufacturing sector and the expertisegained from their real estate fund will be instrumental in elevating SimpoloGroup to one of the leaders in the building materials industry in India.”


Mr. Luca Majocchi, CEO of Nexion said, “MOPE’s investment validatesour thesis that India will become one of the largest premium tiles markets inthe world, the driving element supporting our investment in the country. In2015, we partnered with the Simpolo promoters with the shared vision ofcreating an Italian company in India. Today, Nexion is beloved by customers andarchitects alike due to the beauty and quality of its products, and this isreflected in the growth we have demonstrated over the last 6 years. As Indiaeconomy and society continue to develop, we expect the luxury tiles market inIndia to grow exponentially.”


Mr Prakash Bagla, Director of MOPE said, “We believe that theluxury and premium tiles segment in India is poised for rapid growth, as theshare of high-end tiles will increase from less than 10% today to 30-40% asseen in developed markets. Simpolo and Nexion, with their focus on innovativedesigns, superior product quality, widespread dealer network and brandpositioning is well placed to capture this growth and become a leading buildingmaterials player in India”.


Mr. Mitin Jain, Founder of India SME Investments said,Simpolo’smanagement team has established a benchmark for providing world-class qualityproducts at globally competitive cost-economics, which reiterates the ‘IndiaShining’ story. We are glad to be a part of this journey backing Jitubhai’svision to become the most valuable company in this segment in India.


Motilal Oswal Investment Advisors has acted as an exclusive financialadvisor to the Simpolo Group.


Wadia Ghandy & Co, AZB Partners and JSA Advocates & Solicitorswere the legal advisors to the transaction.


About SimpoloVitrified Private Limited


Simpolo Vitrified, founded in2008, is one of themarket leaders in the premium tiles segment in India. The Simpolo Group startedin 1977, with the roof tile products and entered through Simpolo brand insanitaryware business in 1991. Simpolo now is engaged in the business ofdesigning, manufacturing, supplying and distributing wide range of premiumproducts in tiles and sanitaryware segment. The company offers its products tobuilders, architects and home owners, both in India and outside India through anetwork of over 1100 dealers with export to over 50 countries. Simpolo hasalways been industry leader in introducing the latest technology in the Indianmarket with high quality standards and has the best-in-class manufacturingfacilities in Morbi, Gujarat. Company has managed to create a strong brandrecall in the mind of consumers.


About NexionInternational Private Limited


Nexion International is the only design in Italy andmade in India manufacturer of sintered stone slabs in the luxury segment of theslabs and tiles market in India. The company, established in 2015 to bring world renowned Italiandesign and quality to Indian architects and consumer,is a partnership between two large family groups that have always been leadersin their reference markets: Ceramiche Speranza (formerly Emilceramica), one ofthe best Italian firms, founded in 1961, that has setup the state of the artmanufacturing facilities in India together with Simpolo’s Promoters. In lessthan 6 years, Nexion has become the leader in the luxury segment of the Indian ceramicmarket with a reach of almost 300+ dealers across India and exports to the most important markets worldwide.


AboutMotilal Oswal Alternates


MOAlternate Investment Advisors Private Limited (MOPE) is a subsidiary of MotilalOswal Financial Services Limited (MOFSL), a diversified financial servicesgroup with businesses in Securities, Asset Management, Housing Finance, PrivateEquity and Investment Banking. MOPE is managing both private equity and realestate funds and cumulatively manages around USD 1.7 bn between the two assetclasses. The private equity vertical focuses on providing growth capital tomid-market companies across its preferred sectors of consumer, financialservices, life sciences and niche manufacturing, typically in the range of INR2,000 – 5,000 million. The private equity vertical has, in the last 16 years,made over 36 investments in the last 16 years and has completely exited 15investments, having delivered a gross MOIC of 5.3x (INR) and gross IRR of 25.9%(INR), making it one of the top performing platforms in India. Many portfoliocompanies of MOPE have, over the years, scaled to between USD 3-7 bn companiesfrom less than USD 100 mn at the time of investment.


AboutIndia SME Investments


India SME Investments was established in 2019, the Fund is sectoragnostic and focussing on investing in early-growth small and mid-sizecompanies. Simpolo is India SME’s 9th investment and has earlierconcluded deals in the FinTech, retail, branded food processing, manufacturingand B2B platform businesses. Investments include KrazyBee, SmartCoin,LokSuvidha, Citykart, Kushal’s, Priniti Foods, Venus Pipes and Source.One.


For further details contact:

Rohini Kute

Head, Corporate Communication,

Motilal Oswal Financial Services

Mob +919820196838 / Mail: rohini.kute@motilaloswal.com