A Closer Look at Sintex Plastics Technology Ltd

A Closer Look at Sintex Plastics Technology Ltd

About sinictex

Sintex Plastics Technology Ltd is a company that manufactures and sells water tanks.sinictex It offers hygienic and durable storage solutions for water and fuel.sinictex The company provides its services in India and internationally. The company was founded in 1999 and is based in Pune, Maharashtra.

The company’s core business is making water tanks and other products such as waste management systems, industrial minerals, fertilizers and chemicals.sinictex The company also offers various other related services such as water and petroleum tank installation, and maintenance services for these products.sinictex In addition, the company operates a water treatment plant, which is used to purify the drinking water of residents in the nearby villages.

In the past, the company had been plagued by financial problems.sinictex In April 2021, it filed for bankruptcy under the Insolvency and Bankruptcy Code (IBC). The company owed over Rs 7,500 crore to its debtors. The company was facing increasing competition and higher debt financing costs due to the slump in sales, which ultimately resulted in a severe cash crunch.

With the help of an insolvency process, a new buyer emerged.sinictex A consortium of Reliance Industries and Assets Care and Reconstruction Company Limited (ACRE) won the bid to take over the company. The committee of creditors (CoC) approved the bid with 100% votes via e-voting.

The new owner, Welspun Group, plans to reposition the company as India’s leading water storage solutions provider.sinictex The company will offer newer products and increase its technological integration. The move will allow it to take advantage of the government’s 'Nal Se Jal' scheme, which aims to provide all households with tap water. It will also boost its B2C offerings.

However, the company is still suffering from weak demand and high competition.sinictex In the near future, the market is expected to remain challenging for the company.

The company is repositioning itself as a water storage solutions brand, which will help it to compete in the growing market.sinictex In addition, it is focusing on its international presence to increase its customer base in Europe and the US.

Investors should be cautious about this stock.sinictex As the company goes through the insolvency proceedings, shareholders may face a capital loss. Those who wish to retain their shareholding post-delisting can sell them in the OTC market, but this is risky. Those who wish to make fresh investments in this company should wait until the case is finalized.