Under the scheme of arrangement, Astral will transfer the assets and liabilities of its chemicals business to Astral Chemie. The chemicals business, which manufactures adhesives, polyvinyl acetate (PVA), cyanoacrylates, solvent cements, silicone sealants, epoxy resins, construction chemicals, putties and allied products, recorded a turnover of Rs 1,266.3 crore in FY26, accounting for 21% of the company's total revenue.
Shareholders of Astral will receive one equity share of Astral Chemie with a face value of Re 1 for every one equity share of Astral held.
The company said the restructuring will enable the plumbing and chemicals businesses to operate independently allowing their respective management teams to pursue focused growth strategies, capacity expansion, product development, market expansion, acquisitions and strategic collaborations.
Further, the board also approved the amalgamation of Al-Aziz Plastics, a wholly owned subsidiary engaged in the manufacture of electrofusion fittings, compression fittings, saddles, electrical fittings and allied products, with Astral.
The amalgamation will enable the integration of its manufacturing facilities and capabilities, products, and customer relationships with the Plumbing Business, while also reducing legal and regulatory compliances burden and related administrative costs.
Sandeep Engineer, managing director of Astral said, 'Today marks an important milestone in Astral's journey. Over the years, we have built strong and scalable platforms across plumbing, adhesives, sealants, construction chemicals, paints and coatings, each with its own operating model, capital requirements, market opportunities and strategic priorities. We believe these businesses have now reached a stage where dedicated leadership, greater accountability, sharper strategic focus and independent capital allocation can meaningfully accelerate their next phase of growth.
The proposed demerger will bring Astral's adhesives, sealants and construction chemicals together with paints and coating businesses under Astral Chemie, creating a focused chemicals platform with significant opportunities to leverage common strengths in research and development, manufacturing, procurement, branding and distribution. At the same time, Astral will be able to deepen its focus on the core Plumbing Business, while the amalgamation of AlAziz Plastics will further integrate complementary products and capabilities, thereby strengthening Astral's product portfolio, manufacturing capabilities and ability to offer more comprehensive solutions to our customers.'
Astral is one of India's leading building materials companies, with a diversified presence across essential construction and infrastructure product categories. Starting with a focused offering in pipes and fittings, the company has, over the years, systematically expanded its portfolio to include adhesives, sealants, water storage solutions, bathware, valves, paints, construction chemicals, and infrastructure products.
The company reported an 18.79% year-on-year increase in consolidated net profit to Rs 213 crore for Q4 FY26, compared with Rs 179.3 crore in Q4 FY25. Revenue from operations jumped 24.21% YoY to Rs 2,088.5 crore in Q4 FY26.
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