Sintex eyes business opportunity in CSR

With CSR spending by private sector expected to rise with Companies Act 2013 coming into effect from April 1, 2014, Sintex Industries, a dominant player in the plastics and textile business segments, has identified CSR as a strategic area for growth. CSR push gains significant momentum as Sintex believes that its established product portfolio is well suited for Indian CSR spend. “We are going aggressive on CSR front and Sintex being a pioneer in the social segment, we will leverage our innovations in the private sector for various initiatives,” said Amit Patel, Group Managing Director, Sintex, in a press release.
 
The release added, “The company has identified CSR as a strategic area for growth. As new initiative by private sector will entail a potential market for Sintex products. Sintex has already worked on several initiatives and launched products in biogas, environment products, wastewater treatment systems and wastewaster treatment systems. These will now be marketed under CSR initiatives. Conventional products of rural schools, healthcare centres and sanitation toilet block are already well received in the markets.”
 
To create brand awareness and top of the mind recall, Sintex has roped in Mudra DDB to enhance visibility and launch new marketing initiatives.
 
Meanwhile, Sintex Industries recorded 15% growth in net sales in FY2014 to Rs 5842.6 crore driven by robust growth in prefabs and overseas custom moulding. FY14 EBITDA at Rs 964.2 crore also saw a jump of 25% as compared to FY13.
 
Sintex Industries’ prefab sales touch all time high of Rs 1174 crore. New product introductions and innovative distribution strategies has driven growth in non-government segment. Overseas custom moulding business has logged significant growth at 9% driven by aerospace and defence sectors and improvement in other sectors.
 
Patel said, "FY14 was an extremely challenging year, despite this our topline and bottomline growth installs confidence on our sound business model. The prefabricated infrastructure business has grown by 20% with a blend of new product introductions and robust social spending. Our overseas custom moulding is on a strong foothold for next upturn. I believe all the building blocks are in place for a health recovery in the near future."
 
He added, "As a long term strategy, we have significantly realigned our business portfolio in the most profitable, cost efficient and prudent mix. This will result in higher returns on assets as utilisation picks up and asset turnover improves. A gradual economic recovery is around the corner and we are well placed to reap maximum benefits in the coming years."