Home Energy conservation Welspun India to invest Rs 800 cr in improving its capacity over the next two years, Energy News, ET EnergyWorld

Welspun India to invest Rs 800 cr in improving its capacity over the next two years, Energy News, ET EnergyWorld

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New Delhi: Welspun India said it plans to invest around Rs.800 crore in expanding the capacity of its home textiles and flooring business over the next two years. Welspun India, the country’s largest home textiles maker, is reportedly investing Rs 656.5 crore in expanding its home textiles business in fiscal year 22-23. Its plans include increasing its towel manufacturing capacity by 20% to meet growing demand from overseas customers.

The company’s board of directors, in a meeting on Saturday, approved plans to increase the towel-making capacity of its Anjar, Kutch, Gujarat plant to 1,02,000 metric tons per year ( MTPA) compared to the existing 85,400 MTPA.

“Bearing in mind the recent trend for clients to focus on the entire value chain, ie ‘farm to shelf’, the board approved a investing in 40 toweling looms for terry cloth in Anjar, which represents 7% of installed capacity, “Welspun told India in a regulatory filing late at night.

While for its Vapi-based factory, Valsad (Gujarat), the board has approved additional investments related to automation to speed up production turnaround at a lower cost.

At Vapi, the company started increasing its carpet manufacturing capacity by 80% in the last fiscal year.

“The company is expected to invest 656.5 crore rupees for the aforementioned expansion in fiscal years 22 and 23,” he said.

The benefits of these expansions will begin to accumulate in phases from the first quarter of fiscal 23, he added.

“This expansion has a revenue potential of Rs 1,207 crore from the second year of operation,” he added.

In addition, the board of directors of its subsidiary Welspun Flooring Ltd also approved a capex of 143.6 crore.

“The board of directors of the wholly owned subsidiary, Welspun Flooring Ltd, at its meeting held on September 18, 2021, approved investments of Rs 143.6 crore to be invested in fiscal years 22 and 23 …” , did he declare.

This involves decongesting and rebalancing its installation in Telangana, including the establishment of a 25 MW renewable energy plant and strengthening the group’s commitment to ESG by integrating sustainability and circularity. at each stage of its value chain.

According to Welspun India, in the current fiscal year it has invested 281 crore rupees in capital expenditure and the total investment in fiscal year 22 will be 750 crore rupees including investment board approved on Saturday for home textiles and flooring.

“There is no change in the company’s forecast for the current fiscal year for the net debt position of Rs 2,400 crore as of March 31, 2022,” he said. he declares.

Welspun India is part of the Welspun Group, a conglomerate that has business interests in sectors such as pipelines, home textiles, infrastructure, warehousing, steel, oil and gas, advanced textiles and flooring solutions. PTI KRH MKJ