Welspun Corp, a prominent player in the manufacturing sector, witnessed a 1% surge in its shares following significant news about its subsidiary gaining approval from the Odisha government for a substantial investment in setting up a manufacturing unit. This development is projected to have a transformative impact on the company’s operations and expansion plans.
The subsidiary, Sintex BAPL, received a green light from the Odisha government to invest approximately Rs 479.47 crore in establishing a state-of-the-art manufacturing unit. This facility will focus on producing CPVC, UPVC, SWR, agri pipes, PVC fittings, and plastic tanks, with an estimated annual capacity of 37,520 metric tons, in Sambalpur, Odisha.
The projected timeline for the implementation of this ambitious project spans the upcoming three fiscal years. The approval from the state-level single-window clearance authority represents a significant milestone for Sintex BAPL, signaling its commitment to enhancing production capacities and venturing into newer segments.
Chairman BK Goenka highlighted the strategic importance of this move, emphasizing the company’s dedication to exploring growth avenues in both established and emerging markets. The foray into the PVC pipes segment is seen as a strategic step to bolster the company’s presence in the building materials sector, complementing its existing portfolio, notably the iconic water tanks under the Sintex brand.
This announcement comes on the heels of another substantial development earlier in the month, where Welspun Corp’s associate firm, EPIC, secured a lucrative contract with Saudi Aramco, valued at approximately Rs 1,000 crore. The contract entails manufacturing and supplying large-diameter steel pipes, further solidifying the company’s standing in the industry.
The company’s stock performance has been noteworthy, reaching a 52-week high of Rs 562.00 and a low of Rs 177.85, indicating a considerable upswing in market value. Presently trading 2.85% below its yearly peak, the stock has soared a remarkable 207% from its lowest point, showcasing a resilient upward trajectory.
In the last six months, the share price has surged impressively by 126%, signifying investor confidence and optimism surrounding the company’s strategic moves and growth initiatives. This surge reflects market enthusiasm for Welspun Corp’s expansion strategies and potential market positioning in the manufacturing domain.
