Welspun India, the country's largest home textiles manufacturer, would invest Rs 656.5 crore on its home textiles business expansion during FY'22-23. Its plans include augmenting its towel manufacturing capacity by 20 percent to meet the growing demand from overseas customers.
The board of the company in a meeting held on Saturday approved plans to augment towel manufacturing capacity at its Anjar, Kutch (Gujarat)-based plant to 1,02,000 metric tonnes per annum (MTPA) from the existing 85,400 MTPA.
''Keeping in view the recent trend of customers focuses 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 7 percent of installed capacity,'' said Welspun India in a late-night regulatory filing.
While for its Vapi, Valsad (Gujarat) based plant, the board has approved additional investment relating to automation for faster production turnaround at a lower cost.
At Vapi, the company has commenced expansion of rugs capacity expansion by 80 percent during the last financial year.
''The company is expected to invest Rs 656.5 crore for the aforesaid expansion over FY'22 and FY'23,'' it said.
The benefits of these expansions will start accruing in phases from Q1 FY'23 onwards, it added.
''This expansion has a revenue potential of Rs 1,207 crore from the second year of operation,'' it added.
Besides, the board of its subsidiary Welspun Flooring Ltd has also approved a CAPEX of 143.6 crores.
''The board of the wholly-owned subsidiary company, Welspun Flooring Ltd, at its meeting held on September 18, 2021, approved CAPEX of Rs 143.6 crore to be invested over FY22 and FY23...," it said.
This is for de-bottlenecking and rebalancing of its facility at Telangana, including setting up of a 25 MW renewable energy power plant and to further the group's commitment towards ESG by embedding sustainability and circularity at every stage of its value chain. According to Welspun India, 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 including the investment approved by the board on Saturday for the home textiles and flooring businesses.
''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 March 31, 2022,'' it said.
Welspun India is a part of Welspun Group, a conglomerate that has businesses interests in sectors including - Line Pipes, Home Textile Products, Infrastructure, Warehousing, Steel, Oil & Gas, Advanced textiles, and Flooring solutions.