Infra.Market announces fund raise in RDC Concrete
Infra.Market had acquired RDC Concrete, India's largest independent ready-mix concrete company, for US$ 90Mn in mid of 2021 when it had 49 RMC plants, which has currently grown to 100 plants across 48 cities. RDC Concrete expects to have around 180 RMC plants by the end of FY25. Growth has propelled the company to a dominant position within its sector. Current fund raise has closed at a valuation of approximately US$ 225 Mn.
Commenting on the announcement, Souvik Sengupta, Co-founder, Infra.Market, said, "The investment in RDC reflects our commitment to driving growth and fostering leadership within the construction industry. It is also a testament to the team at RDC which has been at the forefront of an astonishing journey. We look forward to witnessing RDC's continued evolution and contributing to its promising journey in the sector as we welcome the new investors in the company."
Led by Ashish Kacholia, this investment underscores the company's strong fundamentals and promising growth, with his track record adding credibility and strategic insight.
Speaking on his stake in RDC, investor Ashish Kacholia said, “Our interactions with the team at RDC has left us with a great understanding of the opportunities in India’s ready mix concrete market and the potential for the team at RDC to tap the opportunities. It’s a pleasure for us to participate in this financing round and partner with a great team building a lasting organization. We look forward to being good partners in the further growth of the company and are excited for the journey ahead.
Speaking on the divestment, Anil Banchhor, MD & CEO, RDC Concrete, said, “This significant milestone symbolizes not just validation of our growth story, but also a testament to the vision of our team in pioneering the concrete market in India. This partnership further aligns perfectly with our mission to revolutionize the construction materials industry. RDC is strategically positioned for unparalleled growth and innovation. Together, we are set to redefine the benchmarks of success in our sector and contribute meaningfully to the India’s construction material sector.”
India’s concrete penetration is the lowest among large economies of the world and the penetration of concrete as a percentage of total cement usage is expected to increase in the days to come. A large part of non-metro construction in India was primarily hand mixing concrete at site which is slowly shifting to manufactured concrete delivered at location. Major parts of the industry are still dominated by local players with no large brands in the concrete manufacturing space in India. RDC Concrete is the category leader and the largest independent ready mix concrete company and is expected to have a revenue of Rs 2,000 Cr by the end of this financial year FY24. RDC Concrete’s revenue and its EBITDA has grown over 2x since its acquisition in 2021.
The overall growth in the construction and infrastructure sector in India and the surge in construction of metros, airports, and highways continues to provide substantial growth opportunities for construction material companies. As a leader in an under-penetrated category, RDC is uniquely positioned to capitalize on the growth opportunities that the construction and infrastructure will provide in India.
About Infra.Market
Founded in 2016 and valued today at $2.5 billion, Infra.Market, India's foremost construction materials company, is reshaping the future of construction, both domestically and internationally. With innovative business planning and smart use of technology, it is the only company in the country to seamlessly supply over 15 different construction material product categories, including Concrete, AAC Blocks, Steel, Pipes & Fittings, MDF, Plywood, Laminates, Tiles, Bath Fittings & Sanitary, Fans, Lights, Kitchen and Electrical Appliances, Modular Kitchens & Wardrobes, Designer Hardware and even Paints.
Equipped with 10,000+ retail touchpoints and 30+ flagship stores, Infra.Market supplies all its products under its own brand name and also from companies that it has invested in including RDC Concrete and Shalimar Paints Ltd. Additionally, it has fortified its market position by launching India's first of its kind multi products and multi categories brand IVAS for home construction and renovation needs. The company takes pride in operating 200+ concrete manufacturing plants and an additional 30+ manufacturing units for other product categories. Fostering transparency and efficiency within the industry, most products supplied by Infra.Market are manufactured in-house.
Its distinctive fusion of conventional solutions with an unconventional, disruptive approach provides a comprehensive range of construction material products consolidated under one roof. This integrated approach efficiently caters to the diverse requirements of both B2B and B2C needs in the construction material industry.
Website: www.infra.market
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