Orbia details purchase of Vectus

Orbia detailed its acquisition of Vectus Industries Limited’s majority stake in India in its Construction and Infrastructure segment and through its Wavin subsidiary.

In February 2022, Orbia acquired a majority stake (67%) in Vectus, a private manufacturer of plumbing and drainage pipes and a market leader in water storage tanks in India.

With this joint venture, Orbia’s Construction and Infrastructure businesses will operate at the forefront of India’s rapidly growing water management industry, supplying customers in the residential, commercial, industrial, infrastructure and agricultural sectors for a cash payment of $108 million and divesting 33% of Wavin’s pre-existing business in India.


Vectus is a leading manufacturer of plumbing pipes and water storage products for the residential, commercial, industrial, infrastructure and agricultural sectors in India, and one of the largest polymer-based water storage solutions companies.

For now, Orbia is in the process of determining the allocation of the purchase price to the fair values ​​of the identifiable assets acquired and liabilities assumed.

This process is expected to be completed for each acquisition within 12 months of the acquisition date.

The preliminary allocation of the purchase prices to the fair value of the net assets acquired is as follows:

Redeemable non-controlling interest

Pursuant to the shareholders’ agreement with the minority shareholders who retained 33% of the capital stock (redeemable minority interest) of Vectus, Orbia entered into a put/call option contract in which, after the fifth anniversary of the closing date of the contract of acquisition of Vectus, the minority shareholders will have the right to sell their participation in Vectus to Orbia and Orbia will have the right to acquire Vectus at the price agreed in the respective contract.

The value of the option depends on certain conditions linked to the multiples of the EBITDA value. Orbia recognized the future value based on estimated scenarios, considering the present value of the assumed obligation. The initial accounting record was a charge to equity and a credit to non-current liabilities as part of the redeemable non-controlling interest caption of 196 million dollars, change in fair value recognized in results for the year.

Orbia’s business groups are Precision Agriculture (Netafim), Data Communications (Dura-Line), Building and Infrastructure (Wavin), Fluorinated Solutions (Koura) and Polymer Solutions (Vestolit) that collectively seek to ensure food safety, reduce water scarcity, reinventing the future of cities and homes, connecting communities with data infrastructure, and expanding access to health and wellness with advanced materials.

Orbia has business activities in more than 100 countries and operations in 41, with offices in Mexico City, Boston, Amsterdam and Tel Aviv.


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