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Leading Indian financial institutions commits USD 66 Mn to support Simpolo Group in expanding share and penetration in the fast growing luxury and premium tiles market in India by new investments in sales, services and latest technology production facilities

Mumbai 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 completed an investment of USD 66 Mn in Simpolo Group, India’s largest luxury and premium tiles manufacturer. Simpolo Group includes the flagship company Simpolo Vitrified Private Limited and Nexion International Private Limited.

Established in 2008, Simpolo Vitrified Private Limited is the market leader in the premium tiles segment in India, is promoted by first generation entrepreneur Jitendra Aghara and is based out of Morbi, Gujarat, one of the largest tiles manufacturing districts in the world. Simpolo has a pan India presence with a robust network of 1,100+ dealers and exports to over 50 countries. Established in 2015, Nexion International Pvt. Ltd. is a JV between Simpolo promoters and the promoters and former owners of Emilceramica SpA, an Italian company established in 1961 and one of the global leaders in the luxury tiles segment.  On a consolidated basis, Simpolo and Nexion are the largest player in the high-end segment of the Indian tiles market, with revenues of ~USD 150 Mn in FY 2022.

Post completion of the transaction, the Group’s strategy – so far so successful - will remain the same. Simpolo and Nexion will continue to operate as independent entities; Simpolo is the Brand of Choice in the Premium market and Nexion is the leader in the Indian luxury segment.

he Group will use the financial resources, access to best practices and the skills contributed by MOPE to capture market share and grow penetration in India and abroad, enabled by targeted investment in sales, advertising & promotions, and to expand the current capacity in tiles and sanitaryware, improve logistic and enhance customer service. Simpolo sanitaryware division will also expand into the faucets sector.

The Group will use the financial resources, access to best practices and the skills contributed by MOPE to capture market share and grow penetration in India and abroad, enabled by targeted investment in sales, advertising & promotions, and to expand the current capacity in tiles and sanitaryware, improve logistic and enhance customer service. Simpolo sanitaryware division will also expand into the faucets sector.

Mr. Jitendra Aghara, Group CMD, Simpolo Group said, “We are delighted to have MOPE as our partners. Both organizations share the common vision to build one of the largest brands in the building materials industry in India. Over the last 15 years, we have created a differentiated presence in the premium tiles segment in India, and MOPE’s investment underscores the strength of our brand premiumness, product quality and deep distribution network. 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.”

Mr. Vishal Tulsyan, MD and CEO of MOPE said, “We are excited to back a passionate first-generation entrepreneur like Jitubhai, who has built a strong management team along with forging a strong partnership with Italian promoters, who have created the strong and credible high-end brand Nexion. Simpolo has all the right ingredients to be the most valuable tiles company in India in the coming years.”

Mr. Luca Majocchi, CEO of Nexion said, “MOPE’s investment validates our thesis that India will become one of the largest premium tiles markets in the world, the driving element supporting our investment in the country. In 2015, we partnered with the Simpolo promoters with the shared vision of creating an Italian company in India. Today, Nexion is beloved by customers and architects alike due to the beauty and quality of its products, and this is reflected in the growth we have demonstrated over the last 6 years. As India economy and society continue to develop, we expect the luxury tiles market in India to grow exponentially.”

Mr Prakash Bagla, Director of MOPE said, “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. Simpolo and Nexion, with their focus on innovative designs, superior product quality, widespread dealer network and brand positioning is well placed to capture this growth and become a leading building materials player in India”.

Mr. Mitin Jain, Founder of India SME Investments said, “Simpolo’s management team has established a benchmark for providing world-class quality products at globally competitive cost-economics, which reiterates the ‘India Shining’ story. We are glad to be a part of this journey backing Jitubhai’s vision to become the most valuable company in this segment in India

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.

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