Gujarat-headquartered Sintex-BAPL Ltd, a wholly-owned subsidiary of Sintex Plastic Technology Ltd, has received a structured credit commitment of Rs 1,250 crore ($185.7 million) from a non-banking financial company of global alternative investment firm Kohlberg Kravis Roberts & Co. (KKR).
Sintex-BAPL said in a stock exchange disclosure that it will use the money from KKR India Financial Services Ltd and other capital pools managed by KKR and some co-investors to refinance existing debt and fund its growth in the business-to-consumer (B2C) vertical for plastic products.
With the fresh funding, Sintex-BAPL said it has replaced short-term debt with long-term debt.
As part of the deal, KKR managing director Tashwinder Singh will become a member of Sintex-BAPL's board.
Singh has been part of the KKR’s Mumbai capital markets team since 2012 and focuses on KKR India Financial Services. He was promoted to the MD post last December.
KKR India Financial Services was set up in 2009 and lends to companies across sectors, excluding real estate.
Meanwhile, parent firm KKR has sold its entire stake in a private sector lender Magma Fincorp Ltd, marking its first full exit from its India portfolio this year as it continues to harvest its local investments.
Sintex-BAPL
Sintex-BAPL manufactures injection-moulded plastic components for the automotive industry. It has seven manufacturing facilities across the country.
Its product portfolio includes exterior systems for front and rear bumpers, overhead, side walls, acoustic management, seating and hood.
Incorporated in 2007, Sintex-BAPL was earlier known as Bright Autoplast Pvt. Ltd and was previously the automotive division of Bright Brothers Ltd.
Sintex Industries acquired the automotive plastics division of Bright Brothers for $36.41 million (Rs 149 crore) in 2007, according to VCCEdge, the research arm of News Corp VCCircle.
Sintex-BAPL is part of the custom moulding division of parent Sintex Plastic Technology.
The company’s total income stood at Rs 2,021.11 crore and profit after tax was Rs 276.39 crore for the financial year 2016-2017, according to Sintex Plastic Technology's annual report.