The proposed investment is for the purpose for manufacturing around 59 KMTPA of Plastic Pipes, 5,300 MTPA of Water Storage Tanks and 8,900 MTPA Sandwich Moulded Tanks. The pipes and fittings would include CPVC, UPVC, HDPE and OPVC pipes as well as shall cater to the exponentially growing water distribution segment.

The company said that this is in sync with stated plan at the time of acquisition of Sintex BAPL itself to leverage the brand and enter into different types of Plastic Pipes segment due to the reason that plastic pipes market in India is likely to grow at a CAGR of 10-12% to reach to the market size of Rs 60,000 crore in next five years. Foray into plastic pipes segment thus 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 their position into the B2C segment.

Welspun Group chairman, B. K. Goenka said, “Sintex is an iconic brand for it’s 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. As a group, we are already running our operations in the state. This project will create further employment in the state.”

Welspun Corp is primarily engaged in business of manufacture and distribution of steel and steel products.

The company reported consolidated net profit of Rs 384.67 crore in Q2 FY24 as compared with net loss of Rs 56.59 crore in Q2 FY23. Revenue from operations soared 106.7% to Rs 4,059.45 crore in Q2 FY24 as against Rs 1,963.81 crore in Q2 FY23.

The scrip shed 0.70% to Rs 528.20 on the BSE.