Welspun has approved plan to augment towel manufacturing capacity by 20% at its plant in Anjar from the existing 85,400 MTPA to 102,000 MTPA to meet the growing demand from the overseas customers. Keeping in view the recent trend of customers focus to track the entire value chain i.e., “Farm to Shelf”, the company has approved an investment in 40 looms for towel fabric at Anjar which represents 7% of installed capacity.
At Vapi, Rugs capacity expansion by 80%, which commenced during the last year, Welspun has planned an additional investment relating to automation for faster production turnaround at lower cost. The Company is expected to invest Rs. 6,565 mn for the aforesaid expansion over FY22 and FY23. The benefits of these expansions will start accruing in phases from Q1FY23 onwards. This expansion has revenue potential of Rs. 12,070 mn from second year of operation.
Welspun Flooring Limited has approved capex of Rs. 1,436 mn to be invested over FY22 and FY23, 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.
During current year, Welspun has invested Rs. 2,810 mn in capex and the total investment during FY22 will be Rs. 7,500 mn.