Category: General
Country: India
Region: South Asia
The project will span over the next three financial years starting from fiscal year 2025.
December 18, 2023
Shares of Welspun Corp were trading almost 2% lower on 18 December after the company’s subsidiary announced its plan to invest Rs 807 crore to set up a manufacturing unit in Telangana.
The company said that its wholly-owned subsidiary, Sintex BAPL, has approved an investment plan of Rs 807 crore to set up a manufacturing unit in Telangana through its step-down subsidiary, Sintex Advance Plastics Limited.
The project will span over the next three financial years starting from fiscal year 2025 and will be funded through a combination of debt and equity.
The investment is for manufacturing 59 kilo million tonnes per annum of plastic pipes, 5,300 million tonnes per annum of water storage tanks, and 8,900 million tonnes per annum of sandwich-moulded tanks.
The pipes and fighting manufactured will include UPVC, HDPE, CPVC, and OPVC pipes and will cater to the growing demand in the water distribution system in India.
The company added, “This is in sync with our stated plan at the time of acquisition of Sintex BAPL to leverage the brand and enter into different types of plastic pipes segment.”
Welspun Group Chairman BK Goenk said, “Sintex is an iconic brand for its water storage tanks and plastic pipe. Its will strengthen our presence in the building material vertical further and provide significant value creation for our stakeholders. As a group, we are already running our operations in the state. This project will create further employment in the state.”
The Indian market for plastic pipes is expected to record a CAGR of 10-12% and will reach Rs 60,000 crore market in the next five years.
Welspun Corp added, “Foray into the plastic pipes segment thus provides a huge opportunity for 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 position into the B2C segment.”
At 2:17 pm, the shares of Welspun Corp were trading 0.13% lower at Rs 531.80 on NSE.
Courtesy: equitypandit.com
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