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

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)