Welspun Corp Shares Dip 1.5% as Sintex BAPL Invests Rs 807 Crore in Telangana Manufacturing Unit

18 Dec 2023 , 02:54 PM

Welspun Corp’s share price declined by 1.5% on December 18, trading at Rs 524.00 at 9:26 am on the BSE, down Rs 7.90 (1.49%). Welspun’s subsidiary, Sintex BAPL, will invest up to Rs 807 crore to establish a manufacturing unit in Telangana through a step-down subsidiary, Sintex Advance Plastics Limited (SAPL), spanning the next three financial years starting FY25.

The investment focuses on manufacturing 59 KMTPA of plastic pipes, 5,300 MTPA of water storage tanks, and 8,900 MTPA of sandwich-molded tanks.

Funding for the project will be a combination of debt and equity. The product range includes CPVC, UPVC, HDPE, and OPVC pipes, targeting the expanding water distribution segment.

India’s plastic pipes market is projected to grow at a CAGR of 10-12%, reaching Rs 60,000 crore in the next five years.

Welspun’s investment aligns with its strategy to enter various plastic pipe segments, optimizing distribution channels, reducing logistics costs, and strengthening its position in the B2C segment.

Welspun Group Chairman BK Goenka emphasized that Sintex’s venture into plastic pipes enhances the group’s presence in the building material vertical, creating value for stakeholders.

The project is anticipated to generate employment opportunities in the state of Telangana.

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