Leading Building Materials Company raises INR 150 Cr in Private Placement Round from Bharat Value Fund (BVF)
FinTech BizNews Service
Mumbai , September 5, 2024 : Leading Building Materials Company Marudhar Rocks International Private Limited (Marudhar) secured INR 150 Crores from Bharat Value Fund (BVF), managed by Pantomath Capital Management Pvt Ltd, through a private placement round. BVF picked up 6.5% stake valuing the company at Approx INR 2300 Crores
Bharat Value Fund, launched in August 2024 as the second series Category II AIF under the India Inflection Opportunity Trust (IIOT), is managed by the esteemed industry leader Madhu Lunawat. With a targeted corpus of INR 2,000 crores, the fund has successfully raised INR 1200 Crores from 950 investors to date. Of this amount, INR 150 crores has been invested in Marudhar Rocks International. BVF primarily focuses on pre-IPO investment opportunities in Indian growth-stage enterprises. The fund targets companies that promote the "Made in India" ethos, substituting imports, fostering exports, and supporting India's vast rural consumption.
Marudhar Rocks, founded in 2010 is the largest manufacturer of Premium Engineered Quartz Surfaces (Premium EQS) in India, with a production capacity of approximately 2 million square meters per annum, spread across three strategically located facilities in Jaipur, Rajasthan; State Industries Promotion Corporation of Tamil Nadu (Hosur, Tamil Nadu); and Kelamangalam (Hosur, Tamil Nadu). The company also produces Premium Stone Plastic Composite Flooring (Premium SPC Flooring), diversifying its product portfolio to meet the growing demand in both domestic and international markets. Notably, Marudhar generates 100% of its revenue from exports to USA, UK, Canada, Australia, Italy, Middle East and Vietnam, serving marquee global surfaces brands and maintaining a strong distribution network worldwide.
Marudhar has deployed state of the art, patented technologies from renowned global technology vendors. It’s SIPCOT and Jaipur plants are equipped with the Most Advanced Technology available globally, called Bretonstone Technology, for Premium Quartz. The Company had both Super Jumbo and Jumbo size Premium Surfaces manufacturing capabilities, one of the only few companies to have it.
Marudhar’s founding team has more than 40 years of experience of dealing in Premium Surfaces for Global Markets. The team has strong understanding of global demand and pricing scenarios, which helps in better positioning of Premium Surfaces like EQS and SPC Flooring. The experience has helped Quartz segment achieving impressive scale within just 5 years of commencement of operations and placing the Company as largest manufacturer in India.
In 2021, Marudhar acquired a fully Bretonstone powered Engineered Quartz Surfaces manufacturing at facility at Jaipur, Rajasthan from ASI Industries Limited. The Facility is having a installed capacity to manufacture 6 Lakh Sq. Mtr. of Engineered Quartz surface per annum.
Premium Engineered Quartz is a USD 25-30 bn market globally. India is one of the largest exporters into USA, the largest market for Quartz globally; SPC is also estimated to be USD 30 bn global opportunity. The Indian market for SPC is also showing promising growth led by variety of factors including the upgradation of lifestyle, increase in disposable income, growing urbanisation, increase in housing and commercial real estate demand, amongst others.
Commenting on the fund raise, Mr. Jitendra Kothari, Mr Vikas Kothari, Mr Avinash Mehta and Mr Ronak Kochar, Directors at Marudhar Rocks International said "We are thrilled to receive this significant investment from Bharat Value Fund. This infusion of INR 150 crores has come at a very crucial time as we continue to solidify our position as the largest and most profitable manufacturer of Premium Surfaces in India. With this funding, we aim to accelerate our growth trajectory by enhancing our production capabilities, investing in cutting-edge technologies across our Premium Surfaces portfolio, and expanding our market reach both domestically and internationally, to cater to the increasing demand.
This partnership with BVF not only validates our business model and strategic vision but also empowers us to innovate further and meet the evolving needs of our customers. We are committed to maintaining the highest standards of quality and sustainability in our products, and this investment will help us in achieving these goals more effectively.
At Marudhar Rocks International, we believe in pushing boundaries and setting new standards, and this collaboration with BVF is a significant milestone in our journey towards excellence. We look forward to a fruitful partnership that will drive our mutual growth and success.”
With Bharat Value Fund coming aboard, we believe that the journey to financial success is paved with innovation, resilience, and strategic thinking. With BVF partnership, we are confident in our ability to navigate the complexities of the market and seize opportunities that will yield mutually beneficial returns. Together, we can build a future of prosperity and growth” Directors added.
Speaking about its investment in Marudhar, Ms. Madhu Lunawat, CIO of Bharat Value Fund said, “Our decision to invest in Marudhar is driven by their impressive track record, robust business model, premium product portfolio, experience of the Founders and their commitment to quality and sustainability. We see tremendous potential in Marudhar's ability to scale further, enhance their production capabilities, and expand their market presence both domestically and globally.
At BVF, we are dedicated to supporting businesses that are poised for significant growth and impact. Marudhar Rocks International embodies these qualities, and we are confident that this partnership will lead to remarkable advancements in the sector. We look forward to working closely with the Marudhar team and contributing to their continued success and industry leadership.” added Ms Madhu Lunawat.
Marudhar clocked revenue of INR 518 crores in FY24 growing at CAGR of 73% over Fiscal 2020 to 2024. The Company had EBITDA margin of 36% and PAT margin of 27% respectively with robust Average ROE and Average ROCE of 46% and 31% respectively during FY24.
