SINTEX INDUSTRIES
USD 450m to be raised for composites and textiles expansion / Three potential European acquisitions targeted in 2008
Sintex Industries (Kalol / India; www.sintex-plastics.com) is continuing on its acquisitive trail and plans to amass a war chest worth USD 450m through the issue of USD 150m each of foreign currency convertible bonds, global depository receipts and equity shares on a qualified institutional placement basis.
The company intends to invest USD 150m of the money raised in 2008 to boost its composites business through the acquisition of three additional companies, thought to be mainly in Europe, which will be purchased through Sintex Offshore Holdings, based in The Netherlands. The identities of the companies remain unknown.
Sintex is planning investments worth a further USD 150m over the next three years in textiles, plastics and monolithic prefabricated structures and is reportedly aiming to become a USD 3 bn multinational company by 2012. It had a turnover of USD 280m in the 2006 – 2007 financial year. The company built its early reputation on the fabrication of water tanks but is now diversifying into composites and textiles. It said that the US composites market, currently at USD 6 bn annually, is expected to grow to USD 40 bn over the next three years, with aviation, automotive and defence sectors increasingly using composites to replace metals. Sintex said that its composites revenues are currently growing at 30% to 35% annually, mainly through overseas orders.
The Indian prefabricated structures market is also expected to show significant growth. The company has an order book worth USD 330m in this segment with an additional USD 70m in orders from the Delhi government for the construction of a competitors’ complex for the 2010 Commonwealth Games.
Meanwhile, in December 2007, Sintex acquired Nero Plastics (Owosso, Michigan / USA; www.neroplastics.com) for USD 4.7m. The deal was concluded through Wausaukee Composites (Wausaukee, Wisconsin / USA; www.wauscomp.com) in which the Indian company acquired a majority stake in mid-2007 for USD 20.5m – see Plasteurope.com of 16.10.2007". Nero Plastics is a custom moulder of low and medium volume structural plastic and composite components and was formerly a competitor of Wausaukee Composites. It reported sales of USD 17.5m in 2006. During 2007 Sintex also acquired Bright Brothers (Mumbai / India) for USD 38m and French injection moulder and French thermoset processor Nief Plastic Group (Genas; www.nief-plastic.com) for USD 45m.
The company intends to invest USD 150m of the money raised in 2008 to boost its composites business through the acquisition of three additional companies, thought to be mainly in Europe, which will be purchased through Sintex Offshore Holdings, based in The Netherlands. The identities of the companies remain unknown.
Sintex is planning investments worth a further USD 150m over the next three years in textiles, plastics and monolithic prefabricated structures and is reportedly aiming to become a USD 3 bn multinational company by 2012. It had a turnover of USD 280m in the 2006 – 2007 financial year. The company built its early reputation on the fabrication of water tanks but is now diversifying into composites and textiles. It said that the US composites market, currently at USD 6 bn annually, is expected to grow to USD 40 bn over the next three years, with aviation, automotive and defence sectors increasingly using composites to replace metals. Sintex said that its composites revenues are currently growing at 30% to 35% annually, mainly through overseas orders.
The Indian prefabricated structures market is also expected to show significant growth. The company has an order book worth USD 330m in this segment with an additional USD 70m in orders from the Delhi government for the construction of a competitors’ complex for the 2010 Commonwealth Games.
Meanwhile, in December 2007, Sintex acquired Nero Plastics (Owosso, Michigan / USA; www.neroplastics.com) for USD 4.7m. The deal was concluded through Wausaukee Composites (Wausaukee, Wisconsin / USA; www.wauscomp.com) in which the Indian company acquired a majority stake in mid-2007 for USD 20.5m – see Plasteurope.com of 16.10.2007". Nero Plastics is a custom moulder of low and medium volume structural plastic and composite components and was formerly a competitor of Wausaukee Composites. It reported sales of USD 17.5m in 2006. During 2007 Sintex also acquired Bright Brothers (Mumbai / India) for USD 38m and French injection moulder and French thermoset processor Nief Plastic Group (Genas; www.nief-plastic.com) for USD 45m.
14.01.2008 Plasteurope.com [209896]
Published on 14.01.2008
German version of this article...