Welspun Corp Limited, a leading manufacturer of steel and home furnishing products, has announced that its wholly owned subsidiary Sintex BAPL has signed a Memorandum of Understanding (MOU) with the state government of Telangana to set up a manufacturing unit in the state with an investment of up to Rs 350 crore.
The proposed project is part of the state government’s incentive scheme and will manufacture water tanks and pipes. Along with growing its market reach in the water tanks segment, Sintex, a national iconic brand, plans to make its foray into the pipes business through this project, which will have a mix of different types of PVC pipes and fittings.
The total investment will be spread over the next three financial years. The project design is at an early stage and the initial investment will not exceed Rs 50 crore on land and infrastructure in the current financial year (FY24). More details regarding the project will be shared in due course.
The new manufacturing unit is expected to create around 1,000 jobs in Telangana. It will also help the company to expand its market reach in the southern region of India.
Commenting on the development, Welspun Group Chairman, B. K. Goenka said, “As a group, we have been running our operations in the state already and this project will create further employment in the state. Sintex is an iconic brand for its water tanks and foray into the PVC pipes segment will strengthen our presence into the building material verticals further.”
On Tuesday, shares of Welspun Corp Limited gained 1.44% to Rs 394.30 per share with an intraday high of Rs 400.95 and an intraday low of Rs 393.90. The stock’s 52-week high is 406.70 per share and its 52-week low is Rs 177.85. The shares of the company saw a spurt in volume by more than 2 times.
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