Sintex BAPL Announces Investment in Telangana for New Manufacturing Unit

Welspun Corp Limited has revealed that its wholly owned subsidiary, Sintex BAPL, has finalized an investment plan of approximately Rs. 807 crore for establishing a manufacturing unit in Telangana. This initiative will be carried out through a wholly owned step-down subsidiary, Sintex Advance Plastics Limited (SAPL), with the investment spread over the next three financial years, commencing from FY25. The project's funding will be a combination of debt and equity.

The proposed investment aims to facilitate the production of ~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 encompass CPVC, UPVC, HDPE, and OPVC pipes, catering to the rapidly growing water distribution segment.

This strategic move aligns with Welspun's initial plan at the time of Sintex BAPL acquisition to diversify into various Plastic Pipes segments. The Plastic Pipes market in India is anticipated to experience a CAGR of 10-12%, reaching a market size of Rs. 60,000 crore in the next five years. Venturing into the plastic pipes segment offers a substantial opportunity for Sintex to leverage its brand, optimize distribution channels, and rationalize logistics costs. This move is poised to strengthen its growth outlook and further establish a robust position in the B2C segment.

B. K. Goenka, Chairman of Welspun Group, expressed, "Sintex is an iconic brand for its Water Storage Tanks, and foraying into the Plastic Pipes segment will enhance our presence in the building material vertical, providing significant value creation for our stakeholders. As a group, we already have operations in the state, and this project will generate additional employment opportunities in Telangana."

EQUITYBULLS