Vardhman Textiles Ltd. said in a regulatory filing that the board has approved a further expansion in its spinning capacity by installing Vortex Machines equivalent to around 70,000 spindles entailing a cost of around Rs 600 crore.
The company will finance expansion that they said from its internal accruals and debt. The company believes that the capacity addition will bring much better business synergies, competitive advantage and shall meet the increased demand.
Prior to this, the company enhanced its capacity earlier in October 2021 with the approval of its Board of Directors, by installing 1.65 lakh equivalent spindles with a cost of about Rs 1,400 crore.
The company’s existing capacity is 12 lakh equivalent spindles approximately, with existing capacity utilization of 95%.
