Welspun Corp’s arm, Sintex BAPL has decided to invest up to INR 807 crore to set up a plastic pipe manufacturing unit in Telangana which will be spread over the next three financial years starting FY25. The project will be funded through a combination of debt and equity.
Dec 18, 2023
Welspun Corp’s arm, Sintex BAPL has decided to invest up to INR 807 crore to set up a manufacturing unit in Telangana through a step-down subsidiary, Sintex Advance Plastics Limited (SAPL), which will be spread over the next three financial years starting FY25. The project will be funded through a combination of debt and equity. The planned investment is for manufacturing 59 KMTPA of plastic pipes, 5,300 MTPA of water storage tanks, and 8,900 MTPA of sandwich-molded tanks. The pipes and fittings would include CPVC, UPVC, HDPE, and OPVC pipes and shall cater to the exponentially growing water distribution segment.
The market for plastic pipes in India is proposed to record a CAGR of 10-12 percent to reach INR 60,000 crore in the next five years. Sintex BAPL had signed a contract with the Telangana government in September to set up a manufacturing unit in the state with up to INR 350 crore investment.
“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,” the company said.
Mr. BK Goenka, Welspun Group Chairman, said, “Sintex is an iconic brand for its water storage tanks and plastic pipes 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.”