Vardhman Textiles accelerates growth through garment expansion, strategic capex and Sustainability-Led Transformation

Strengthening Leadership Across the Textile Value Chain

Vardhman Textiles Limited continues to reinforce its position as one of India’s most integrated and future-focused textile manufacturers through a combination of strategic investments, downstream expansion, modernization initiatives, and ambitious sustainability goals. With strong capabilities spanning yarns, fabrics, garments, threads, fibres, and specialty textile solutions, the company is steadily evolving into a more diversified and value-added textile enterprise.

Suchita Oswal Jain, Vice-Chairman and Joint Managing Director of Vardhman Textiles

At the centre of this transformation is Vardhman’s newly announced ₹125 crore investment in garment manufacturing, alongside a broader ₹3,660 crore capex programme aimed at strengthening capacities, enhancing operational efficiency, and accelerating sustainability-led growth.

Major Push in Garment Manufacturing

Vardhman’s latest investment in garmenting marks a significant step in the company’s strategy to strengthen its downstream value-added business. The Board has approved a major expansion of its men’s shirt manufacturing capacity from the existing 2.20 million shirts per annum to approximately 4.50 million shirts annually.

The project, involving an investment of approximately ₹125 crore, is expected to be completed by the end of FY2026-27 and will be funded through a combination of internal accruals and debt.

The decision comes at a time when the company’s existing garmenting operations are running at nearly 95% capacity utilization, reflecting strong demand and growing customer confidence in Vardhman’s apparel manufacturing capabilities.

The expansion is aimed at broadening the company’s product portfolio while strengthening relationships with premium international brands and high-value buyers. The additional capacity is also expected to improve operational efficiencies and support larger order volumes from global customers increasingly seeking integrated and reliable sourcing partners.

As global apparel sourcing dynamics shift towards quality, compliance, sustainability, and supply chain reliability, integrated manufacturers like Vardhman are emerging as preferred partners for international brands.

Large-Scale Capex Reinforces Future Growth Strategy

Beyond garmenting, Vardhman is implementing a comprehensive capital expenditure programme across spinning, fabrics, technical textiles, modernization, and green initiatives. The company’s total announced capex currently stands at approximately ₹3,660 crore.

Vardhman currently operates with installed spinning capacity exceeding 1.25 million spindles, over 1,500 looms in grey fabric manufacturing, and processed fabric capacity of approximately 222 million meters annually.

In the spinning segment, the company has already completed the expansion of approximately 15,600 spindles during H1 FY26, while another 17,000 spindle expansion has also been completed. Additionally, the company is preparing to commence its open-end spinning project, which will further strengthen manufacturing flexibility and expand product offerings.

On the fabric side, Vardhman has successfully commenced commercial production of its processed fabric expansion project with an annual capacity of 31 million meters in March FY26. The company has simultaneously started commercial production at its Vardhman Performance Fabric (Synthetic Woven) project with annual capacity of 18 million meters.

This investment in synthetic woven and performance fabrics reflects Vardhman’s increasing focus on technical and functional textile applications, segments witnessing strong growth globally across sportswear, mobility, outdoor, industrial, and performance apparel markets.

Embedding Sustainability into Core Business Strategy

Sustainability continues to remain central to Vardhman’s long-term vision, with the company pursuing ambitious ESG targets across climate, water, waste, sourcing, and workplace safety.

As part of its long-term environmental roadmap, Vardhman aims to achieve Net Zero Emissions by 2045 while targeting a Net Positive Impact by FY2050.

The company is accelerating its transition toward renewable energy and has set a target of achieving 60% green power generation by FY2027-28. Simultaneously, Vardhman is implementing its Green Capex programme in phases, with completion expected by FY27.

The company has also outlined several key circularity and resource-efficiency goals, including:

  • 50% reduction in waste sent to landfill by 2030
  • 30% reduction in freshwater consumption by 2030
  • 100% sustainable packaging by FY2030
  • 100% ZDHC MRSL compliance by FY2030

Importantly, approximately 36% of Vardhman’s inputs were sourced sustainably during FY25, reflecting increasing integration of responsible sourcing practices across its value chain.

Positioned for the Next Phase of Textile Growth

Vardhman’s latest investments and sustainability initiatives collectively reflect a clear long-term vision—moving beyond scale to create a more integrated, technology-driven, and sustainability-focused textile enterprise.

The company’s simultaneous focus on garmenting expansion, technical textiles, automation, green manufacturing, and ESG leadership positions it strongly within the evolving global textile ecosystem. As international sourcing shifts increasingly toward reliable, compliant, and environmentally responsible manufacturers, Vardhman appears well aligned to capitalize on emerging opportunities.

With strong operational foundations, integrated manufacturing capabilities, and a continued emphasis on innovation and sustainability, Vardhman Textiles is steadily consolidating its position among India’s leading global textile manufacturing groups.