“Sintex buy to help Welspun reach more households nationwide”
Welspun has acquired the plastic industry market leader Sintex BAPL through the corporate insolvency resolution process. The deal marks a significant expansion for world’s leading home textile and line pipes manufacturer.
For decades, Welspun has been an export-focused organization but with its new vision, the company is exploring B2C business prospects in India. Recently, the company has been focusing in the building material category.
In a statement issued on 30 March 2023, Welspun said that with the acquisition of Sintex, it will be an integral part of many more households nationwide, expanding its building material portfolio which is a huge part of the larger B2C strategy.
“Welspun Flooring is emerging in the building material business with market disrupting strategies, providing flooring solutions in a day. With the combination of flooring, water tanks and other interior solutions like doors, windows etc, Welspun is poised to emerge as a strong brand in the category,” it said in the statement.
Recently, the National company Law Tribunal (NCLT) approved the Rs 1,251 crore resolution plan submitted by Propel Consortium – a consortium consisting of two entities of Welspun Group – for Sintex BAPL Limited.
The resolution plan provides for Rs 1,243 crore to financial creditors (out of their admitted claims of Rs 2,900 crore), Rs 5 crore to operational creditors and Rs 2 crore for workmen and employees.
Sintex’s auto business already has a strong portfolio of OEM as well as tier 1 customers nationally and globally. BAPL – Rototech is a preferred partner in the industry for designing, developing and producing full functions and system solutions. The Rototech space of Sintex is another big opportunity for the Welspun Group.
In recent times, Welspun has also been installing manufacturing units for DI Pipes, TMT bars with brand Welspun Shield, Advanced textiles and other capabilities to support the B2C strategy. The company has also been leading sustainable practices across the nation and with amplified ESG initiatives. The goal is to positively touch 1 million lives by 2030.
After foraying into sectors like warehousing, flooring and advanced textiles to create strong emerging businesses, Sintex is another emerging opportunity for Welspun.
For decades Sintex has been a household name in India for water tanks and other plastic products having a strong distribution network across India.
Commenting on the development of the acquisition, Balkrishan Goenka, Chairman of Welspun, said, “As we strengthen our building material portfolio and envision a strong domestic foot prints with our diverse businesses Sintex acquisition is a strategic addition to strengthen our consumer connect and on ground presence. Sintex brand is synonyms to the category and is known for its legacy of quality products. With our new vision “Har Ghar se Har Dil Tak Welspun” every business is committed about driving our penetration in domestic market.”
Also Read: Welspun Group acquires Sintex-BAPL for Rs 1,251 crore
