Image Source: ET Manufacturing
Welspun Group has made a major diversification of its Sintex brand, and it has set plans to foray into the competitive pipes segment with the aim of reaching a 5% market share in seven years. This is part of Welspun's overall strategy to diversify Sintex from its highly successful plastic water storage tank business.
The group backed by the family Goenka, who bought Sintex through insolvency auctions in 2023, is now pushing the brand into new verticals like pipes, water recycling, and electrical products. For Yashovardhan Agarwal, Director of Sintex and Managing Director at Welspun BAPL, the company has already started prototyping its business of pipes and aims to achieve national presence in less than one year.
Welspun has spent significant amounts of money on this expansion, where capacity expansion has been funded to the tune of Rs 2,400 crore, of which Rs 300-350 crore has already been spent. The group has acquired five production units and acquired three more, including a recent acquisition of Weetek Plastics in Raipur and new plants in Sonipat and Bhopal.
The Indian market for pipes is expected to rise to Rs 1.3 lakh crore in FY30 at a growth of 12% per annum. Welspun's foray with Sintex is attempting to take advantage of the top-of-the-mind recall for the brand, particularly in Tier II and Tier III cities, to grab market share rapidly. The group is also attempting to price Sintex water storage products at lower prices and access a bigger set of customers. Agarwal emphasized that the company is aggressively investing in manpower, capacity, and operational efficiencies to drive long-term growth. "Our aspirational target is to have 5% under seven years. So the whole ballpark will change," he explained, highlighting the opportunity size in the pipes business segment, which is twelve times larger than the water tank space.
Welspun's strategy also involves foraying into recycling water and electrical goods, followed by expansion in cable wires later on. This expansion will contribute hugely to the company's penetration and competitiveness in India's rapidly growing infrastructure and construction industries.
Source: Business Standard
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