Companies

Welspun India to boost capacity to meet overseas demand

Bloomberg | Updated on September 20, 2021

Will increase towel manufacturing capacity at its Anjar plant

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.

Published on September 20, 2021

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