Welspun Group has completed the acquisition of plastics products manufacturer Sintex BAPL, a company that was earlier backed by private equity major KKR, after a bankruptcy court approved the former’s resolution plan.
The acquisition has been done by Welspun Corporation, a group company. The deal will help the group, a home textiles and line pipes manufacturer, to expand its plastic business-to-consumer business.
“As we strengthen our building material portfolio and envision a strong domestic footprint with our diverse businesses, Sintex acquisition is a strategic addition to strengthen our consumer connect and on ground presence. Sintex brand is synonymous to the category and is known for its legacy of quality products,” Welspun chairman Balkrishan Goenka said.
Sintex BAPL, a subsidiary of Sintex Plastics Technology, was admitted for insolvency proceedings in December 2020 on a petition filed by a trade creditor. The firm was demerged from Sintex Industries, which was acquired by Mukesh Ambani-helmed Reliance Industries.
JM Financial Asset Reconstruction and a consortium led by Propel Plastic Products, a Welspun Group company, had also evinced interest in the company. In its meeting held on January 28, the committee of creditors of Sintex BAPL, had voted in favour of the resolution plan submitted by a consortium led by Propel Plastic Products, a Welspun Group company. On March 15, the National Company Law Tribunal’s Ahmedabad bench approved the resolution plan submitted by Welspun Group companies.
