Industrial Update – Newsletter – March 2025
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
A composite material consists of two or more substances with distinct chemical & physical properties, combined to enhance strength and durability beyond those of the individual components. It typically comprises two key components – reinforcement fibre (glass, carbon, aramid, etc.) embedded in a resin/matrix material (polyester, epoxy, vinyl ester, etc.). Superior to traditional materials like plastics and metals, composites are widely used in aerospace, automotive, construction, renewable energy, & electronics.
The global composite materials market, standing at size of ~US$48 bn in 2024, projected to grow at a 4% CAGR (2024-30). In contrast, India’s emerging composite market, though smaller is anticipated to grow at a much faster rate.
Glass fibers combined with polyester resins are the most widely used composites (comprising ~70%+ of the market), replacing plastics and other materials in construction, transportation, and industrial applications; Glass fibre composites are also the most common material used to make PCB boards. Carbon fibre (completely imported) are used largely in combination with epoxies to make structural components largely for aerospace, automotive and sports equipment.
In 2024, the ground transportation/auto and construction sectors comprise approximately 54% of the total users of composite market by volume in India. Other key segments include electronics, pipes and renewable energy (wind turbines). While use of composites in aerospace and renewable energy have limited adoption in India, they are expected to grow at the fastest rate over the next few years.
The composite manufacturing industry consists of two key verticals:
•Material Manufacturing: There are a large number of resin manufactures in India but limited number of players manufacturing fibre – Goa Glass Fiber and Owens Corning manufacture glass fibre. Other reinforcement fibres like carbon fibres are entirely imported, though some companies plan to initiate domestic production of these materials.
•Fabrication: This segment focuses on transforming composites into end-use products. Products manufactured range from customized low-volume (but high margin products) which often includes a product or process design element to high-volume components such as cables and pipes albeit with lower margins.
Key Players
Some recent transactions
| Mar’25 | Euler Motors | Hero Moto acquired a 32% stake in the EV truck and 3Ws OEM for ~₹525 Cr. |
| Mar’25 | Right Tight Fasteners | The Italian Fontana Gruppo acquired a 60% stake in the fastener manufacturing company for ₹1,000 Cr. |
| Mar’25 | Infinite Uptime | Indian VC fund Avataar Ventures led a fundraise of ~₹305 Cr for the American Industry 4.0 company |
| Mar’25 | Lucro Plastecycle | HUL acquired a ~14% stake in the plastic recycler for an undisclosed sum |
| Mar’25 | PTC Energy | ONGC Green acquired 100% of the power trading business for ~₹925 Cr. |
| Mar’25 | Kwality Feeds | The Allana Group, acquired the animal feed producer for ~₹300 Cr. |
Recent News
- Chinese automaker BYD surpassed U.S’s Tesla in revenue for CY24, earning approximately $107 billion compared to Tesla’s $97.7 billion. However, Tesla remains the world’s largest pure EV manufacturer, as a substantial portion of BYD’s revenue comes from hybrid vehicles
- Gold prices made yet another all-time high reaching ~$3,057 per ounce (~INR 90,000/10 gm) in Mar’25. In 2024, India had surpassed China as world’s largest consumer of gold jewellery
- India’s manufacturing PMI grew to 57.6 in March from 56.3 in the previous month; A PMI over 50 signifies growth
- GoI approved a new PLI scheme for electronic component manufacturing with an allocation of INR 22,919 Cr (~ US$ 2.65 billion) targeting components like display modules, camera modules, multi-layered PCB boards, Li-cells, passive components among others
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
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