Sintex Plastics Technology Limited is a holding Company of entities engaged in the manufacture of plastic products in India and Europe
and trading activities in USA. The Company was incorporated in
...
August 04, 2015. The Company is a globally-respected plastic processing conglomerate that caters to diverse high-growth sectors. Headquartered in Kalol, Gujarat, the Company has an extensive presence in India and across the globe through its subsidiaries.
The Company's India presence is catered to by its two subsidiaries Sintex-BAPL Limited and Sintex Prefab and Infra Limited. Sintex BAPL Limited develops and delivers custom moulding solutions to various user sectors in India. This Company has a global presence through its step-down international subsidiary, Sintex Logistics LLC. Sintex Logistics LLC is the marketing and business development outfit which is sourcing solutions from the Indian operations for its US clients. The company is selling products in compliance with Buy America Act. Sintex Prefab and Infra Limited undertakes EPC contracts for various infrastructure projects across the nation.
BAPL Rototech Private Limited is a joint venture company between Sintex-BAPL Limited and Rototech Srl (Italy). The Company has two manufacturing facilities, one at Pithampur, M.P and new facility commenced at Jamshedpur, Jharkhand, which manufactures plastic fuel tanks, Diesel Exhaust Fluid (DEF) / Urea Tanks / Adblue Tanks and CV exterior parts Fender, Mud Guards, snorkels etc. using Roto-Moulding and Blow Molding technology, catering the needs of the Commercial Vehicle sector in India and across the globe.
The Company's current customer portfolio includes established OEMs viz Volvo- Eicher, Volvo (India and Thailand), Tata Motors Limited - All locations, UD Trucks (Japan), Cummins Technologies, Mahindra Trucks, to name a few. Apart from the Domestic supplies, the Company is also equally focused on its Export business to UD Trucks, Japan, and VOLVO TSA co. Limited, Thailand. The Company has been actively involved in the export of ad-blue tanks and witnessed substantial growth in export business.
Sintex Prefab and Infra Limited is a Pan-India player offering range of prefabricated products from Mid-day meal kitchens to classrooms, healthcare centers, project & site offices, sanitation, police chowkis, labour camps, bunk houses, army shelters and cold chains among others. The Company is also engaged in the construction of affordable housing for various government projects using monolithic techniques. During the year 2021, the Company revised its business strategy to focus on prefab business with customers in the private sector where the requirement of working capital is less due to timely realization of receivables. However due to ongoing liquidity issues faced by the Company and change in target customer profile, the Company decided to downsize operations till the time liquidity constraints are addressed and volumes with customers in the private sector pick up.
The Company enjoys the preferred supplier position with leading corporate such as Trident, Raymond, ITC, Sun Parma, Thermax, Arvind Yarn Ltd., Enviro Ltd., Amity Raisin, Chenab Textiles, Birla Textiles, The Phosphate Chemicals Pvt. Ltd., Triplex Water Engineering, Vardhman Industries, RSWM, Batteries, Raj Industries, Mylan Labs and others.
The Company's single and double wall fuel storage tanks are positioned as a safe and cost-effective alternative to MS fuel storage tanks. The double wall storage tanks ensures that, if any leakages are detected before the fuel contaminates groundwater. The Company markets products to government and private sector Oil Marketing Companies (OMCs) which include the likes of Shell, HPCL, IOCL. In addition, the FRP underground and above ground storage tanks are used for water storage and conservation, chemical storage, and sewage treatment plants.
In 2020-21, the Company demonstrated their operational capability and effective resource utilization to register the exponential business growth for newly started production facility in Jamshedpur, in particular by supplying fuel tanks to both, Tata Motors and Adblue tanks to Cummins and Tata Motors as well. To support their strategic customer, Tata Motors and acquire new Customer being the 2nd largest player in MHCV, the Company is looking forward to setting up one more manufacturing facility at Pant Nagar, Uttarakhand in Calendar Year 2021.
During Q4, there were many restrictions and lockdown at Indian facilities supplying to SLLC thereby restricting supply chain. This was aggravated by global shortage of containers and shipping routes. Despite the above challenges, the Company could complete major projects with Siemens viz Orange County, Twin City III, Phoenix. Further, the Company also continued to meet demand for projects from Houston 4 (Siemens) and AMTRAK (Alstom) with some delays. The Company won Virgin Heavy Rail interior program from Siemens and FRP seats program from Freedman.
However, there were orders passed by the National Company Law Tribunal, Ahmedabad bench for admission of petitions filed for initiation of Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 against two material subsidiaries i.e. M/s. Sintex Prefab and Infra Limited and M/s. Sintex-BAPL Limited during the period 2021.
Pursuant to the Composite Scheme of Arrangement between Sintex Industries Limited and Sintex Plastics Technology Limited (the Company) and Sintex-BAPL Limited (wholly owned subsidiary of the Company) and Sintex Infra Projects Limited (wholly owned subsidiary of the Company) and their respective Shareholders and Creditors, the Holding Company issued 55,49,41,700 equity shares of Re 1/- each to the equity shareholders of Sintex Industries Limited on 30 May 2017. Sintex Industries Limited (SIL) on 25 May 2016 issued USD 110 million Step Down Convertible Bonds due in 2022 (FCCBs). The FCCBs are convertible at any time on and after 5 July 2016 and up to 15 May 2022 into fully paid equity shares with a nominal value of Re 1/- at the option of the holder, at an initial conversion price of Rs. 93.8125/- (subsequently changed to Rs. 92.16/-) per share with a fixed rate of exchange on conversion of Rs 67.4463/- per USD. In terms of the Composite Scheme of Arrangement approved by Board of Directors on 29 September 2016, if a FCCB holder exercises the option of conversion, Sintex Plastics Technology Limited (SPTL) shall issue corresponding number of equity shares as issued by SIL to such convertible FCCB holder who are allotted equity shares of SIL. The same will be credited to equity share capital and debited to general reserve as prescribed in the Composite Scheme of Arrangement. Pursuant to the Composite Scheme of Arrangement approved by National Company Law Tribunal on 12 May 2017, the Holding Company shall guarantee the due payment of all sums expressed to be payable by Sintex Industries Limited to the outstanding FCCB holders. In case of payment of any outstanding sum to the outstanding FCCB holder by the Holding Company, Sintex Industries Limited shall, without any further act, instrument, deed, matter or thing, make the payment to the Holding Company as mutually decided by Holding Company and Sintex Industries Limited. In terms of the said Composite Scheme of Arrangement, the Holding Company has issued 51,22,874 equity shares of Re 1/- each to the equity shareholders of SIL on during year ended 31 March 2021 and hence against USD 67 Million Foreign Currency Convertible Bonds due 2022 (FCCBs), there are USD6.5 Million FCCBs outstanding for conversion as on 31st March, 2021. The Company allotted 51,22,874 Equity Shares upon conversion of FCCBs worth US$ 7 million during the period under review. Therefore, Paid up share capital of the Company increased from Rs 63,10,28,422/- divided into 63,10,28,422 equity shares of Re 1/- each to Rs 63,61,51,296/- divided into 63,61,51,296 equity shares of Re 1/- each as on 31st March, 2021. FCCBs worth US$ 6.5 million (of the US$ 67 million FCCB issue) were outstanding for conversion into equity shares as on 31st March, 2021.
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