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Entrepreneur
12-05-2025
- Business
- Entrepreneur
Welspun to Invest INR 2,400 Crore in Sintex; Targets 5% Share Pipes Market by 2030
While continuing to grow in the premium water tank segment, which sees around 12 per cent growth, the company is realigning capacity to reduce freight costs and expand its reach, particularly in tier II and III cities. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Welspun Group is steering its newly acquired brand Sintex into fresh territory beyond its well-known water storage tanks, with an ambitious plan to capture 5 per cent of India's highly competitive pipes market within the next seven years. Sintex, which was acquired by Welspun in March 2023 through a corporate insolvency resolution process for INR 1,251 crore, is now being repositioned into new verticals including pipes, water recycling, and electrical components. The diversification strategy reflects the Goenka family-led group's aggressive investment approach toward expanding Sintex's capacity, product offerings, and national footprint. "So our plan is to get into all the different categories. We are in the storage for water tanks. We are getting into transportation, which is the full range of pipes. We will get into the treatment of water as well," said Yashovardhan Agarwal, managing director of Welspun BAPL and director at Sintex, in an interview with PTI. Agarwal revealed that Sintex has already begun prototyping for its pipes business and is targeting a nationwide presence in under a year. Additionally, the company is entering the water recycling space, with a focus on water reclamation and harvesting. "We have already announced last year, INR 2,400 crore as investment in capacity, in which INR 300 crore to INR 350 crore has already been invested," he added. The group has inherited five manufacturing units from Sintex and added three more, including a newly acquired firm, Weetek Plastics in Raipur, for INR 75 crore. "We are already tripling its capacity. We have started a plant in Sonipat near Delhi for tanks, and Bhopal, the biggest one right now, is for the full range of pipes," Agarwal said. Sintex currently has a INR 600 crore business, after shedding non-core segments post-acquisition. While continuing to grow in the premium water tank segment, which sees around 12 per cent growth, the company is realigning capacity to reduce freight costs and expand its reach, particularly in tier II and III cities. "When we acquired the company, it was in shambles. You have to fix the company inside. You have to bring transparency. Now the results are going to come back," said Agarwal.
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Business Standard
11-05-2025
- Business
- Business Standard
Welspun to enter pipe segment with Sintex, eyes 5% market share in 7 years
The Goenka family-promoted group is now taking brand Sintex beyond its primary plastic water storage tank business to new areas such as pipes and water recycling Press Trust of India New Delhi Welspun Group is diversifying Sintex, a company acquired through insolvency, into segments including pipes, aiming to corner 5 per cent market share of this highly competitive space in the next seven years, said a company official. The Goenka family-promoted group is now taking brand Sintex beyond its primary plastic water storage tank business to new areas such as pipes and water recycling. It is also working on electrical boxes and has future plans for cable wires for its electrical business. Welspun is aggressive for Sintex's growth, where it is investing to expand its capacity, talent acquisition and optimisation, which will enable it to drive a long-term growth, said Yashovardhan Agarwal, Managing Director, Welspun BAPL & Director, Sintex. "So our plan is to get into all the different categories. We are in the storage for water tanks. We are getting into transportation, which is the full range of pipes. We will get into the treatment of water as well," Agarwal told PTI. The company has already started prototyping for its pipes business and expects to have a nationwide presence in this segment in less than a year, he added. Welspun will also take Sintex into water recycling, where it will work on reclamation of water, re-harvesting of water etc. "We have already announced last year, Rs 2,400 crore as investment in capacity, in which Rs 300 crore to Rs 350 crore has already been invested," said Agarwal, adding the group has inherited five manufacturing locations and has added three to that. In March 2023, Welspun Group, a leading conglomerate with interests in textiles, steel, line pipes and flooring solutions, acquired Sintex through a corporate insolvency resolution process for Rs 1,251 crore. According to Agarwal, in the water tank business, freight is a "humongous issue" hence, the group is realigning the production capacity. "All three will be open within the next quarters. We have acquired a company called Weetek Plastics in Raipur for Rs 75 crore. We are already tripling its capacity. We have started a plant in Sonipat near Delhi for tanks, and Bhopal, the biggest one right now, and is for the full range of pipes," he said. Besides, capacity expansion and enhancement are planned in a couple of other plants as well, Agarwal added. Sintex has a business of around Rs 600 crore, as Welspun has removed certain parts of the business after the acquisition and is focusing on water storage tanks, where it has around 12 per cent growth in the premium segment. "So that runway has started coming. In quarter four last year and this quarter, we have big growth," he said, adding, "when we acquired the company, it was in shambles. You have to fix the company inside. You have to bring transparency. Now the results are going to come back." When asked about growth projections for Sintex, Agarwal said," We are getting into pipes, which has a market size is 12 times bigger than tanks. Our ambitious target is to have 5 per cent in less than seven years. So the whole ballpark will change." The Indian pipes market, which is having a 12 per cent growth, expects to reach Rs 1.3 lakh crore by FY30. While in the water storage business, where Sintex operates in the premium segment, the group has plans to make it more affordable, taking it to more economical sections. According to Agarwal, now Sintex is targeting tier II & III cities, which was not done earlier. "The biggest advantage of Sintex is, we are known even in Tier III cities. So that real brand printing, which has to happen for the majority of India, it's there. That's why we are very bullish about this," he said. The water storage tank market is estimated to be around Rs 6,000 crore in which Sintex, despite facing all kinds of challenges, has a 10 per cent market share, said Agarwal. When asked about Sintex's plan for electrical products, where it operates with products such as junction and meter boxes, the company said, "EB portfolio is the fastest growing portfolio in overall Sintex product basket. We continue to focus on increasing market reach and simultaneously invest in the backend for operational performance improvement." Besides, Sintex operates in UPVC doors & decorative Panels. It has over 900 distributors across India and is expanding its base. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
