Plastic and textiles player, Sintex Group, on Thursday informed that one of its arms Sintex Plastics Technology Pvt Ltd has received a capital commitment of up to Rs 1,250 crore via structured finance from leading PE fund KKR India and its affiliates.

The latest funding commitment, seen as one of the largest in the manufacturing sector in recent times, will fuel the company's growth plans as the company continues to rapidly shift its business model towards B2C or retail segment, an official statement issued here said.

The announcement comes at a time, when most investors are flocking to the IT and technology enterprises for funding.

The proceeds will be utilised to refinance the existing debt and fund the company’s growth in the B2C business, further capitalising on the 'Sintex' brand for high-margin value-added product categories in the retail plastics division as well as high-end auto and defence plastics product category, it said.

Additionally, the funds will be deployed to improve cash flows and augment the brand-building activities.

Amit Patel, Group Managing Director, Sintex Group, said, "KKR infusion is a measure of confidence in our group. I believe the partnership with KKR will go a long way in nourishing our retail business and custom molding business globally. We welcome KKR onboard and we both will partner for long-term value creation for our stakeholders."

The transaction, advised by ICICI Securities Primary Dealership Ltd, conserves cash flows as well as aligns the investor with the company’s growth strategy, the statement said.

KKR will have representation on the company's board with Tashwinder Singh as a representative on the board of Sintex BAPL, which was recently demerged from the textile division of Sintex.

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