India Business Excellence Fund – IV, a fund managed and advised by MO Alternate Investment Advisors Private Limited (MOPE), along with India SME Investments — Fund I and Motilal Oswal Finvest Limited have invested $66 million in luxury and premium tiles maker Simpolo Group, per an announcement on Thursday.
Simpolo Group, which comprises Simpolo Vitrified Private Limited and Nexion International Private Limited, will use the capital raised to expand its share in the fast-growing luxury and premium tiles market in India and abroad by making new investments in sales services, advertising and promotions; building tech-enabled production facilities; improving logistics; and enhancing customer services.
Post-completion of the transaction, the group’s strategy will remain the same and Simpolo and Nexion will continue to operate as independent entities, the statement said.
“MOPE’s experience to create leaders in the manufacturing sector and the expertise gained from their real estate fund will be instrumental in elevating Simpolo Group to one of the leaders in the building materials industry in India,” Jitendra Aghara, Group CMD, Simpolo Group, said in a statement.
Established in 2008, Simpolo Vitrified Pvt Ltd is promoted by first-generation entrepreneur Aghara and is based out of Morbi, Gujarat. The company, which claims to be a market leader in the premium tiles segment, has a pan-India presence with a robust network of 1,100+ dealers and exports to over 50 countries.
On the other hand, luxury tiles maker Nexion International Pvt Ltd was established as a JV between Simpolo promoters and the promoters and former owners of Italy’s Emilceramica SpA in 2015.
On a consolidated basis, Simpolo and Nexion clocked revenues of $150 million in FY 2022.
“We believe that the luxury and premium tiles segment in India is poised for rapid growth as the share of high-end tiles will increase from less than 10% today to 30-40% as seen in developed markets,” said Prakash Bagla, director of MOPE, said in a statement.
Motilal Oswal Investment Advisors has acted as an exclusive financial advisor to the Simpolo Group.
Wadia Ghandy & Co, AZB Partners and JSA Advocates & Solicitors were the legal advisors to the transaction.