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Private Sector | Gujarat - India | PID: 196394
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The Board of Welspun India has approved a plan to augment towel manufacturing capacity by approximately 20 percent i.e. 16,600 tpa at Anjar, Gujarat, from 85,400 tpa to 102,000 tpa to meet the growing demand from overseas customers
Keeping in view the recent trend of customers’ focus to track the entire value chain i.e. farm to shelf, the Board has approved an investment in 40 looms for towel fabric at Anjar which represents approximately seven percent of installed capacity
At Vapi, rugs capacity expansion by 80 percent, which commenced during FY21, the Board has approved additional investment relating to automation for faster production turnaround at lower cost
The company is expected to invest around Rs 6,565 million for the aforesaid expansion over FY22 and FY23
The benefits of these expansions will start accruing in phases from Q1F/Y23 onwards. This expansion has revenue potential of around Rs 12,070 million from second year of operation
The Board of the wholly-owned subsidiary company viz, Welspun Flooring, at its meeting held on 18 September 2021, has approved capex of around Rs 1,436 million to be invested over FY22 and FY23, for de-bottlenecking and rebalancing of its facility at Telangana, including setting up of 25MW renewable energy power plant for uninterrupted power supply at lower cost and to further the Group’s commitment towards ESG by embedding sustainability and circularity at every stage of its value chain
During FY22, the company has invested Rs 2,810 million in capex and the total investment during FY22 will be Rs 7,500 million including the investment approved by the Board for the home textile and flooring businesses
There is no change in the company’s guidance for FY22 for net debt position i.e. Rs 24,000 million as on 31 March 2022
| Updated on: 20 - Sep - 2021
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