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Welspun India to spend Rs 800 cr for manufacturing capacity expansion
Real Estate

Welspun India to spend Rs 800 cr for manufacturing capacity expansion

Indian multinational conglomerate Welspun India told the media that the company will invest Rs 6.57 billion to increase its manufacturing capacity to meet international demand.

The Mumbai-based textile company announced in an exchange filing Saturday evening that it will increase towel manufacturing capacity at its Anjar plant in western India by 20% to 102,000 tonne per year. It also intends to increase rug production capacity at its Vapi plant by 80%.

The investments will be spread out until March 2023, and benefits will begin to accrue in the April quarter of 2022, with an annual revenue potential of around Rs 12 billion starting in the second year of operation. Welspun's net debt guidance for the fiscal year through March 2022 remains unchanged at Rs 24 billion.

Separately, Welspun Flooring Ltd, a subsidiary of the company, will invest an additional Rs 1.44 billion in debottlenecking its Telangana plant in southern India, which will also include a new 25 MW renewable power plant.

During the previous financial year, Vapi began expanding its rug production capacity by 80%.

From Q1 FY23 onwards, the benefits of these expansions will be realised in stages.

A capex of 143.6 crore has also been approved by the board of its subsidiary Welspun Flooring Ltd.

This is for debottlenecking and rebalancing its Telangana facility, which includes the construction of a 25 MW renewable energy power plant, as well as to further the group's commitment to ESG by incorporating sustainability and circularity into every stage of its value chain.

According to Welspun India, it has invested 281 crore in capex in the current financial year, with a total investment of 750 crore in FY22, including the investment approved by the board on Saturday for the home textiles and flooring businesses.

Welspun India is a subsidiary of the Welspun Group, a conglomerate with interests in industries such as line pipes, home textiles, infrastructure, warehousing, steel, oil and gas, advanced textiles, and flooring solutions.

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Also read: Welspun India aims Rs 730 cr turnover from e-commerce by FY23
Also read: Welspun Corp proposes to acquire steel biz from demerged company

Indian multinational conglomerate Welspun India told the media that the company will invest Rs 6.57 billion to increase its manufacturing capacity to meet international demand. The Mumbai-based textile company announced in an exchange filing Saturday evening that it will increase towel manufacturing capacity at its Anjar plant in western India by 20% to 102,000 tonne per year. It also intends to increase rug production capacity at its Vapi plant by 80%. The investments will be spread out until March 2023, and benefits will begin to accrue in the April quarter of 2022, with an annual revenue potential of around Rs 12 billion starting in the second year of operation. Welspun's net debt guidance for the fiscal year through March 2022 remains unchanged at Rs 24 billion. Separately, Welspun Flooring Ltd, a subsidiary of the company, will invest an additional Rs 1.44 billion in debottlenecking its Telangana plant in southern India, which will also include a new 25 MW renewable power plant. During the previous financial year, Vapi began expanding its rug production capacity by 80%. From Q1 FY23 onwards, the benefits of these expansions will be realised in stages. A capex of 143.6 crore has also been approved by the board of its subsidiary Welspun Flooring Ltd. This is for debottlenecking and rebalancing its Telangana facility, which includes the construction of a 25 MW renewable energy power plant, as well as to further the group's commitment to ESG by incorporating sustainability and circularity into every stage of its value chain. According to Welspun India, it has invested 281 crore in capex in the current financial year, with a total investment of 750 crore in FY22, including the investment approved by the board on Saturday for the home textiles and flooring businesses. Welspun India is a subsidiary of the Welspun Group, a conglomerate with interests in industries such as line pipes, home textiles, infrastructure, warehousing, steel, oil and gas, advanced textiles, and flooring solutions. Image SourceAlso read: Welspun India aims Rs 730 cr turnover from e-commerce by FY23 Also read: Welspun Corp proposes to acquire steel biz from demerged company

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