Welspun Corp Arm Sintex BAPL To Set Up Rs 807-Crore Plastic Pipe Manufacturing Unit In Telangana
The manufacturing unit investment will be spread out over the next three financial years starting from FY25.
Welspun Corp's subsidiary, Sintex BAPL, has confirmed an investment of around Rs 807 crore to establish a manufacturing unit in Telangana, according to an exchange filing on Saturday.
This will be executed through a wholly owned step down subsidiary, Sintex Advance Plastics Limited (SAPL), over the upcoming three financial years starting from the financial year ending March 2025.
The project will be financed through a mix of debt and equity and aims to produce approximately 59 KMTPA of Plastic Pipes, 5,300 MTPA of Water Storage Tanks, and 8,900 MTPA Sandwich Moulded Tanks.
The range of pipes and fittings will cover CPVC, UPVC, HDPE, and OPVC pipes, targeting the fast-growing water distribution sector.
"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. Plastic Pipes market in India is likely to grow at a CAGR of 10-12% to reach to a market size of ~Rs 60,000 crore in next five years," the company said in the filing.
"Sintex is an iconic brand for its Water Storage Tanks and foray into Plastic Pipes segment will strengthen our presence into the building material vertical further and provide significant value creation for our stakeholders," the notification quoted Welspun Group Chairman B.K. Goenka as saying.
Shares of Welspun Corp ended 0.25% lower on Friday at Rs 532 apiece on the National Stock Exchange. The company's shares have more than doubled in 2023.
