India’s leading home textile player Welspun India will invest around Rs. 800 crore on capacity expansion of its home textiles and flooring businesses over the next two years.
In a meeting, the board of the company approved plans to augment towel manufacturing capacity at its Anjar, Kutch (Gujarat)-based plant to 1,02,000 metric tonnes per annum (MTPA), which is currently 85,400 MTPA.
The company would invest Rs. 656.5 crore on its home textiles business expansion during FY22-23. Its plans include augmenting its towel manufacturing capacity by 20 per cent to meet the growing demand from the overseas customers.
In a regulatory filing, the company said that keeping in view the recent trend of customers’ focus to track the entire value chain, that is, ‘Farm to Shelf’, the board has approved an investment in 40 looms for towel fabric at Anjar which represents 7 per cent of installed capacity.
On the other hand, for its Vapi, Valsad (Gujarat)-based plant, the board has approved additional investment relating to automation for faster production turnaround at lower cost.
The expansion has a revenue potential of Rs. 1,207 crore from the second year of operation.
There is no change in the company’s guidance for the current financial year for net debt position, i.e., Rs, 2,400 crore as on 31 March 2022.