Sintex Case Study

5077 Words21 Pages
Name of Unit: Sintex Industry Limited Sintex was incorporated in 1931 and commenced its operation with its textile mill at Kalol in Gujarat . Company diversified into manufacturing of water storage tanks in 1975 and has over the years moved up the plastic value chain by offering several technology intensive products and complete solutions including prefabricated structures, custom molded composites and monolithic construction etc. Plastic segment is now the Company’s flagship business which accounts for more than 90%of top line of the company with remaining 10% coming from textiles. Textile segment mainly caters to high-end and design intensive segment of the market, giving it better operating margins .the Company is implementing a diversification…show more content…
During CY12, SIL acquired two units of the German group Poschmann - one in Germany, now renamed as NP Poschmann and the other in Poland, named NP Polska which would enable SIL with geographic diversity and access to German origin global brands both in the automotive (Bosch, Porsche, Pier burg, etc.) and non-automotive (Siemens, Grohe, Wilo, Vorwerk, etc.) spaces. The cost of acquisition was Euro 2.90 million which was funded entirely through internal accruals. Further, during CY12, Wausaukee Composites Inc. (WCI) renamed to Sintex Wausaukee Composite Inc. (SWCI) to strengthen the ‘Sintex’ brand visibility in the American markets. All these acquisitions have augmented the technical capabilities of SIL and have provided SIL with reputed clientele in their respective industries, thereby providing SIL the opportunity to cross-sell its products across customer segments. Over the last three years, SIL’s domestic as well as overseas subsidiaries have contributed almost 40% of its consolidated sales. With large contribution from its overseas subsidiaries (USA and Europe) and due to concerns of a slowdown in the Eurozone countries, SIL’s consolidated performance would largely depend on performance of its overseas subsidiaries going forward. Strong financial risk profile with sustained income growth and healthy profitability In recent years, SIL’s total operating income has grown at a healthy rate due to strong growth in the plastics division on the back of continuous introduction of new products and also due to healthy inorganic growth. At a consolidated level, SIL’s total operating income, which registered a CAGR of nearly 13% over the last four years ended FY13, grew by nearly 15% during the year over FY12 primarily due to healthy growth in the prefab business which

More about Sintex Case Study

Open Document