Welspun Corp arm to set up manufacturing units in multiple states with ₹2,355-crore investment

Shares of Welspun Corp Limited gained nearly 2% on Thursday after the company announced that its wholly-owned subsidiary will invest ₹2,355 crore in multiple states across India.

Welspun Corp Limited’s wholly-owned subsidiary, Sintex-BAPL Limited, has finalised an investment proposal of up to ₹2,355 crore for establishing manufacturing facilities across several states including Telangana, Odisha, Madhya Pradesh, and the Union Territory of Jammu and Kashmir, the company informed in a filing to the stock exchanges.

According to the company, the investment will be spread over the next two financial years, from FY25 to FY26, and a combination of debt and equity will be used to fund the projects.

With a combined capacity of around 2 lakh MT, the proposed investment is for manufacturing plastic pipes and water storage to fulfil the growing demand in the water distribution and storage industry. This project is in line with the company’s plan, which was set forth when it acquired Sintex-BAPL Limited, to use the brand to expand into other plastic pipe markets.

Welspun Corp Limited estimates that the plastic pipes industry in India might reach a potential value of around ₹65,000 crore by 2030, with significant growth opportunities for both building and infrastructure applications.

BK Goenka, the chairman of Welspun Group, said, “I am glad to share that on the first anniversary of our acquisition of Sintex-BAPL, we have finalised the next phase of growth for Sintex. Over the past 50 years, Sintex has been at the forefront in providing water solutions. Along with improving existing business, foray into new product segments in new locations will further strengthen Sintex brand equity and our B2C market strategy.”

Welspun Corp shares were trading 0.2% higher at ₹515.25 apiece, on the NSE at 3:20 pm.