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Welspun India to invest ₹800 cr in capacity building over 2 yrs

20 Sep '21
2 min read
Pic: Welspun
Pic: Welspun

Welspun India recently disclosed its plans to invest about ₹800 crore over two years to expand its operational capacity of its flooring and textile business. In a regulatory filing to the Bombay Stock Exchange, it announced plans to enlarge its towel manufacturing capacity by about 20 per cent to meet the increased demand from overseas customers.

The company will spend about ₹656.5 crore to expand its towel manufacturing capacity over fiscals 2021-22 and 2022-23. "This expansion has revenue potential of ~₹12,070 mn (₹1207 crore) from second year of operation," the company said in its filing.

The board further approved a capital expendiature of about ₹143.6 crore to its wholly-owned-subsidary Welspun Flooring Limited. The company said the approved investment is for "de-bottlenecking and rebalancing of its facility at Telangana, including setting up of a 25MW renewable energy power plant for uninterrupted power supply at lower cost and to further the group’s commitment towards ESG [environmental, social and governance] by embedding sustainability and circularity at every stage of its value chain".

The filing stated the company has invested ₹281 crore in capital expendiature in the present fiscal. The total investment during this fiscal is expected to be ₹750 crore, inclusive of the recently-announced investments in home textile and flooring business.

There would be no-change to its financial guidance for the current fiscal pertaining to its net debt position which was ₹2,400 crore for March 31, 2022.

Fibre2Fashion News Desk (DS)

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