Welspun India Ltd., which says it makes every fifth towel sold in the U.S., will spend ₹6.57 billion ($89.4 million) to boost manufacturing capacity to meet overseas demand, the company said.
It will increase towel manufacturing capacity at its Anjar plant by 20% to 1,02,000 tonnes a year, the Mumbai-based textile company informed in an exchange filing on Saturday evening. It also plans to expand capacity of making rugs by 80% at its Vapi plant.
Also read: Welspun India looks at ₹730 crore turnover from e-commerce
The investments will be spread through March 2023, and will start accruing benefits from the April quarter of 2022 with an annual revenue potential of about ₹12 billion from second year of operation, it said. Welspun maintains its net debt guidance of 24 billion rupees for the financial year through March 2022.
Separately, its unit Welspun Flooring Ltd. will invest an additional ₹1.44 billion toward de-bottlenecking of its Telangana plant, which also includes a new 25-megawatt renewable power plant.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.