Welspun Group, a diversified conglomerate with businesses in textile, line pipes, infrastructure, and steel, has acquired Sintex-BAPL, a market leader in water tanks and other plastic products, to expand its building material portfolio. The value of the deal was ₹1,251 crore, the company said in a release on Thursday.
The acquisition was done after Propel Plastic Products Private Limited, a wholly owned subsidiary of Welspun Corp Limited (WCL), completed the implementation of the resolution plan as approved by the National Company Law Tribunal (NCLT), Ahmedabad by its order dated March 17, 2023.
The Sintex-BAPL deal was executed by WCL, Propel Plastic Products, and another group company Plastauto, earlier known as Tubular Pipes. With the completion of the deal, both the unlisted Welspun companies will be merged to Sintex-BAPL.
As per the release, the deal is in line with the conglomerate’s plans to aggressively enter sectors with high end-consumer reach in the domestic market. For decades, Welspun has been an export-focused organisation but the company is now exploring B2C business prospects in India with focus in the building material category.
“The deal marks a significant expansion for world’s leading home textile and line pipes manufacturer,” the release highlighted.
“With the acquisition of Sintex, Welspun 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,” it added.
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.”
Earlier this month, Mukesh Ambani-led Reliance Industries acquired textile company Sintex Industries in a deal worth ₹3,567 crore acquisition of textile company Sintex Industries (SIL) under the resolution plan approved by the NCLT. Following the acquisition, RIL will hold a 70% stake in Sintex Industries and the company will be jointly managed by RIL and Assets Care & Reconstruction Enterprise (ACRE). As part of the resolution plan, RIL infused ₹1,500 crore into yarns and fabric maker, while SIL allotted shares totalling ₹600 crore and optionally fully convertible debentures of ₹900 crore to the conglomerate.
Reacting to the news, shares of Welspun Corp rose 2.5% to ₹201.75 in the early trade on Friday. The stock opened higher at ₹199.4 against the previous closing price of ₹196.95. The market capitalisation stood at ₹5,283 crore.