Welspun India in a regulatory filing to the Bombay Stock Exchange disclosed its plans to invest about Rs 800 crore on expanding its operational capacity of its flooring and textile business. The investment would take place over a period of two years.
The textile manufacturer announced plans to enlarge its towel manufacturing capacity by about 20% to meet the increased demand from overseas customers. The company would be spending about Rs 656.5 crore for expanding its towel manufacturing capacity over fiscal year 2022 and 2023. "This expansion has revenue potential of ~Rs. 12,070 mn (Rs 1207 crore) from second year of operation," the company stated in its regulatory filing.
The Board further approved a capital expendiature of about Rs 143.6 crore to its wholly owned-subsidary, Welspun Flooring Limited. The investment would be made over fiscal years 2022 and 2023. 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 by embedding sustainability and circularity at every stage of its value chain".
The filing stated the company has invested Rs 281 crore in capital expendiatures in the present financial year. The total investment during fiscal year 2022 is expected to be Rs 750 crore, inclusive of the recently-announced investments in Home Textile and Flooring Business.
The textile manufacturer announced there would be no-change to its financial guidance for the current financial year pertaining to its Net Debt position which was Rs 2400 crore for March 31, 2022.