In a promising development, shares of Welspun Corp experienced a 1 percent uptick in the early hours of November 23, following the announcement that the company’s subsidiary has secured investment approval for establishing a manufacturing unit.
As of 9:33 am, Welspun Corp was trading at Rs 546.00, reflecting an increase of Rs 7.60 or 1.41 percent on the BSE.
The company’s wholly owned subsidiary, Sintex BAPL, has received the green light from the Odisha government for its proposed investment of Rs 479.47 crore. The investment is earmarked for setting up a manufacturing unit dedicated to CPVC, UPVC, SWR, agri pipes, PVC fittings, and plastic tanks. The unit, situated in Sambalpur, Odisha, is projected to have an annual capacity of 37,520 MT, according to a statement released by the company.
The implementation of the project is expected to unfold over the next three fiscal years. The state-level single-window clearance authority (SLSWCA), presided over by the chief secretary, granted approval to Sintex BAPL’s project proposal during its 124th meeting.
B.K. Goenka, Chairman of Welspun Group, expressed enthusiasm about the expansion, stating, “Sintex is an iconic brand for its water tanks, and we keep exploring growth options in existing and new locations. While our entire focus in WST is on re-energizing retailers, distributors, plumbers, and customers, our foray into the PVC pipes segment will strengthen our presence in the building material verticals further.”
This strategic move aligns with Welspun Corp’s commitment to diversification and growth. The company aims to leverage its well-established brand, Sintex, known for its quality water tanks, to make a significant impact in the PVC pipes segment.
Notably, this announcement follows another positive development earlier in the month when Welspun Corp’s associate firm, East Pipes Integrated Company for Industry (EPIC), secured a contract with Saudi Aramco valued at approximately Rs 1,000 crore. The contract pertains to the manufacturing and supply of large-diameter steel pipes, showcasing Welspun Corp’s continued success and growth trajectory.
Prasanta Patnaik