Given the industry prospects and synergies with the existing business, Welspun Corp Limited is setting up a Greenfield facility at Anjar to enter the Ductile Iron (DI) Pipe business.
Over the last few months, there is an increased focus on creating water supply infrastructure in the country through various government schemes. For instance, in the Union Budget announced in February 2021, there was an increase in the allocation on Jal Jeevan Mission to provide a functional household tap connection to every rural household. Moreover, the Jal Jeevan Mission (Urban) has also been announced. The outlay for this is Rs. 2.87 trillion and it will be implemented over the next 5 years. Tap water connection to 2.86 crore urban households and liquid waste management in 500 cities has been envisaged as part of this scheme. Increased spending by state governments and municipal corporations is also expected to improve accessibility of drinking water supply across the country.
Considering the expected demand, the company has decided to increase the capacity for DI Pipes to 400 KMTPA (from earlier proposed 250 KMPTA) and add DI Fittings to the product range.
This would bring the total project cost to Rs.1,550 crore (plus soft cost) from the earlier planned Rs.1,250 crore (plus soft cost). The project is being funded through a combination of internal accruals and debt.
There are no changes in the timelines and the project is expected to be commissioned by April 2022.
As the project is currently under construction, there is no capacity utilization as of now.
Shares of Welspun Corp Limited was last trading in BSE at Rs.153.8 as compared to the previous close of Rs. 157.35. The total number of shares traded during the day was 186100 in over 3164 trades.
The stock hit an intraday high of Rs. 157.4 and intraday low of 153.4. The net turnover during the day was Rs. 28822820.