Over the next two years, Welspun India plans to invest roughly Rs 800 crore in capacity development for its home textiles and flooring divisions. Welspun India, the country’s largest home textiles company, plans to invest Rs 656.5 crore in expanding its home textiles business during fiscal year 22-23. It intends to increase its towel manufacturing capacity by 20% in order to meet the increased demand from overseas consumers.
In a meeting conducted on Saturday, the company’s board of directors approved plans to increase towel manufacturing capacity at its Anjar, Kutch (Gujarat)-based factory to 1,02,000 metric tonnes per annum (MTPA) from the current 85,400 MTPA.
“Considering the recent trend of customers’ focus on tracking the full value chain, i.e., ‘Farm to Shelf,’ the board has approved an investment in 40 looms for towel fabric at Anjar, which represents 7% of installed capacity,” Welspun India said in a late-night regulatory filing.
The board has approved additional investment relating to automation for faster production turnaround at lower cost. At Vapi, Valsad (Gujarat), the company has commenced expansion of rugs capacity expansion by 80 per cent during the last financial year. The benefits of these expansions will start accruing in phases from Q1 FY23 onwards. This expansion has a revenue potential of Rs 1,207 crore from the second year of operation.
Welspun India is a part of Welspun Group which has business interests in sectors including – Line Pipes, Home Textile Products, Infrastructure, Warehousing, Steel, Oil & Gas, Advanced textiles and Flooring solutions. In the current financial year, it has invested Rs 281 crore in capex and the total investment during FY’22 will be Rs 750 crore. This is for de-bottlenecking and rebalancing of its facility at Telangana, including setting up of a 25 MW renewable energy power plant.
