Welspun Group, a leading conglomerate with interest in textile, steel, line pipes and flooring solutions, has acquired water tanks and other plastic product maker Sintex-BAPL for ₹1,251 crore.

The resolution plan of the company was approved by the National Company Law Tribunal, Ahmedabad, on March 17. In a separate deal, earlier this month, Mukesh Ambani-led Reliance Industries completed its ₹3,567-crore acquisition of textile company Sintex Industries, a month after the National Company Law Tribunal approved the transaction.

The Sintex-BAPL deal was executed by Welspun Corporation Propel Plastic Products and another group company Plastauto. Following the execution of the deal, both the unlisted Welspun companies will be merged to Sintex-BAPL.

The company’s re-constituted board of directors also executed a business transfer agreement and hived-off its auto business to Plastauto for ₹110 crore.

Also read: RIL infuses ₹1,500 crore into Sintex Industries under resolution plan

‘Strategic addition’

Sintex-BAPL is a part of Sintex group which has diversified businesses across plastics, textiles, power (thermal) and infrastructure (EPC). Balkrishan Goenka, Chairman, Welspun, said the acquisition is a strategic addition to strengthen the company’s consumer connect and on ground presence. Sintex brand is synonyms to the category and is known for its legacy of quality products, he said.

Sintex-BAPL has a strong foothold over consumers in the water tank market and brand connect. The consolidated turnover of Sintex-BAPL for the year ended March 31, 2022, was ₹934 crore.

As of January, total claims worth ₹3,266 crore that were due to creditors of Sinxtex were admitted, the bulk of them being financial creditors. Welspun Corp has already acquired Sintex-BAPL’s non-convertible debentures with an outstanding of ₹1,231 crore for a purchase price of ₹421 crore through its subsidiary Mahatva Plastic Products and Building Materials.

‘B2C strategy’

Sintex’s auto business already has a strong portfolio of OEM as well as tier-1 customers nationally and globally. The Rototech space of Sintex is another big opportunity for the Welspun Group.

Also read: Welspun expects ₹1,700-cr revenue from retail biz by FY26

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. After foraying into sectors like warehousing, flooring and advanced textiles to create strong emerging businesses with the acquisition of Sintex.

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