The Mumbai-headquartered company said that its wholly owned subsidiary, Sintex-BAPL has finalised an investment of upto Rs 2,355 crore to set up manufacturing units in the states of Telangana, Odisha, Madhya Pradesh and Jammu & Kashmir.
SintexBAPL has finalized investment to set up manufacturing units in multiple states through its wholly owned step down subsidiary, Sintex Advance Plastics (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, said the company.
The proposed investment is for manufacturing plastic pipes and water storage with a total capacity of around 200,000 MT and will cater to the exponentially growing water storage and distribution segment.
The company stated, This is in sync with our stated plan at the time of acquisition of Sintex BAPL 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 around 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, it added.
Welspun Group chairman, B. K. Goenka said, 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.
Welspun Corp is primarily engaged in business of manufacture and distribution of steel and steel products.
The companys consolidated net profit stood at Rs 291.86 crore in Q3 FY24, steeply higher from Rs 23.24 crore posted in Q3 FY23. While net sales stood at Rs 4,749.71 crore, up 97.7% year on year in Q3 FY24.
Shares of Welspun Corp declined 0.92% to Rs 513 on the BSE.
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