Welspun Corp takes 26% stake in GGBS manufacturing venture; clocks 199% growth in Q1 FY27 profit
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Welspun Corp Ltd is diversifying into green construction materials by acquiring a 26% stake in Slagexcel Private Limited, which will manufacture ground granulated blast furnace slag (GGBS). This move aligns with the company's strategy to capitalize on the growing demand for low-carbon building materials and enhance its sustainability profile. Additionally, Welspun Corp is consolidating its energy assets by increasing its stake in Welspun Captive Power Generation Ltd to 74%, further strengthening its operational control and energy security.
Welspun Corp Ltd is expanding into the green construction materials space by taking a 26 per cent stake in a newly incorporated company that will manufacture ground granulated blast furnace slag (GGBS), a move that will allow the steel pipe maker to tap a growing market for low-carbon building materials.
The company’s board on Friday approved an investment of ₹26,000 for subscribing to a 26 per cent stake in Slagexcel Private Limited, a proposed entity that will manufacture GGBS through the slag granulation process and undertake allied activities.
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The move marks Welspun Corp’s entry into a business closely linked to the steel and cement value chains. GGBS, produced by processing blast furnace slag generated during steel production, is increasingly being used as a substitute for clinker in cement and concrete applications due to its lower carbon footprint.
For Welspun Corp, the venture provides an opportunity to create additional value from industrial by-products while participating in the shift towards sustainable construction materials. The company did not disclose the planned capacity or investment outlay for the proposed GGBS facility.
Separately, Welspun Corp stated in its regulatory filing that it is also moving to consolidate its energy assets by acquiring an additional 51 per cent stake in Welspun Captive Power Generation Ltd (WCPGL) from promoter group company Welspun Living Ltd for ₹67.66 crore.
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Following the transaction, Welspun Corp’s holding in WCPGL will rise from 23 per cent to 74 per cent, making the captive power generation company a subsidiary. WCPGL, which provides captive power generation services, reported revenue of ₹109.95 crore in FY26. The acquisition will help Welspun Corp strengthen control over its power requirements and improve energy security for its operations.
These developments came alongside Welspun Corp’s June quarter results, with the company reporting a 199 per cent year-on-year jump in consolidated net profit at ₹1,046 crore for the first quarter of FY27. The sharp increase in profitability was aided by a one-time gain of ₹547.93 crore from the sale of shares of East Pipes Integrated Company for Industry (EPIC) by its Mauritius-based subsidiary Welspun Mauritius Holdings Ltd.
During the quarter ended June 30, 2026, WMHL sold 14,17,280 shares of EPIC to identified financial investors through negotiated trades on the Tadawul Stock Exchange for SAR 283.46 million, equivalent to around ₹723.55 crore. During the first quarter, the company’s operational performance was reflected in a 15 per cent increase in revenue from operations, which rose to ₹4,081 crore during the April-June period.
Original Article
Published on Hindu BusinessLine