Sintex finalises investment for next growth pipeline in multiple states

Welspun Corp Limited's wholly owned subsidiary Sintex-BAPL Limited has finalised an investment of upto ~Rs.2,355 crore to set up manufacturing unit(s) in the states of Telangana, Odisha, Madhya Pradesh and Jammu & Kashmir through its wholly owned step down subsidiary, Sintex Advance Plastics Limited (SAPL). The investment will be spread over the next two financial years starting from FY25 to FY26 and the projects will be funded through a combination of debt and equity.

The proposed investment is for manufacturing Plastic Pipes and Water Storage with a total capacity of ~200,000 MT and shall cater to the exponentially growing water storage and distribution segment.

As mentioned earlier, this is in sync with our stated plan at the time of acquisition of Sintex -BAPL Limited itself to leverage the brand and enter into different types of Plastic Pipes segment. The market size of Plastic Pipes used for buildings and infrastructure in India is likely to reach to ~Rs 65,000 crore in 2030. Thus, it provides a huge opportunity to Sintex to leverage its brand value, optimise its distribution channel and rationalise its logistics cost, thereby charting out a strong growth outlook and further strengthening our positon into the B2C segment.

Commenting on the development, Welspun Group Chairman, B. K. Goenka said, "I am glad to share that on the first anniversary of our acquisition of Sintex BAPL, we have finalised the next phase of growth for Sintex. Over the past 50 years, Sintex has been at the forefront in providing water solutions. Along with improving existing business, foray into new product segments in new locations will further strengthen Sintex brand equity and our B2C market strategy. Recent signing of framework agreement with Rollepaal Pipe Extrusion Technology B.V. ensures our commitment towards superior technology. I strongly believe that our strategic move in Sintex will help in creating substantial value for our stakeholders."

Shares of Welspun Corp Limited was last trading in BSE at Rs. 513.20 as compared to the previous close of Rs. 517.75. The total number of shares traded during the day was 28483 in over 1344 trades.

The stock hit an intraday high of Rs. 526.20 and intraday low of 509.95. The net turnover during the day was Rs. 14797760.00.

Source : Equity Bulls

Keywords

WelspunCorp INE191B01025 SintexBAPL Investment NewManufacturingUnits Telangana Odisha MadhyaPradesh JammuandKashmir