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MUMBAI : Welspun Corp. Ltd, the second largest manufacturer of large diameter pipes in the world and the flagship company of the $3 billion Welspun Group, is expanding the ambit of its businesses to make them more consumer-centric, said Vipul Mathur, the company’s managing director and chief executive officer.

“We have been significantly successful both in the domestic and international markets. Now I think it is time that we expand our base and, against that backdrop, we are diversifying our portfolio. We are foraying into ductile iron pipe manufacturing, setting up a steel plant, a long product mill, and a super specialty business," Mathur said in an interview. The company also sees a significant growth potential in the polymer business and is scouting for opportunities in this field.

“All in all, we are trying to change the shape, colour and the contour of Welspun Corp. from what it was two years ago. In the next three years it is going to be a very different company," Mathur said.

“The point of inflection was about two years ago. We are seeing that there is a lot of discussion around sustainability, fossil fuel, and decarbonization. So, we realized that being over dependent on one particular line of business could be fairly detrimental for our business," he said. Welspun Corp., which posted a 70.21% drop in its net profit to 61.38 crore on a 6.78% decline in revenue from operations to 1,298.89 crore in third quarter of this fiscal, plans to invest more than 2,500 crore in this expansion.

To give a fillip to its steel business, last year Welspun Corp. acquired Welspun Steel Limited (WSL), which is engaged in the manufacturing of BIS certified steel billets and direct reduced iron, specialty steel, and thermo mechanical treatment bars. “This merger is all about getting our footprint into some B2C business, part of it which is basically nothing but a long product," said Mathur.

The company is bullish on the government’s Har Ghar Nal Se Jal scheme for its pipes, small and large diameter, business. In this budget, the government allocated 60,000 crore to cover 38 million households in 2022-23.

The company said that its B2B business is project-based and is quite cyclical in nature and the market likes to see predictability.

“Today the market wants to see your play in B2B, B2C, in infrastructure, because then you are able to overcome this unpredictable element of the businesses. These are the areas we have not built upon and we are stepping into that," said Mathur. Three years down the line, the company expects at least 40% of the revenue, and at least 50% of earnings before interest, taxes, depreciation, and amortization (Ebitda) to come from the new businesses.

Welspun Group firm Easygo Textiles, which is in a race to acquire Sintex Industries, is bullish on the company’s polymer business.

“At the Welspun Corp. level we have been evaluating the polymer part of the business, which has a strong B2C play. As we want to have a foothold in the B2C segment, we are interested in their polymer business," Mathur said.

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