Vardhman Textiles to invest Rs 350 crore to increase processed fabric capacity (#1682577)

Vardhman Textiles has earmarked an investment of Rs 350 crore ($41.5 million) to increase its processed fabric capacity at the Budhni factory in Madhya Pradesh by about 31 million meters per annum.

The company has an existing processed fabric capacity of about 175 million meter per annum and the current capacity utilization is above 90 percent.

The proposed capacity addition is to be done within two years, and the capital expenditure would be funded from either internal accruals or debt.

With this expansion, the company expects to meet increasing demand for processed fabric in both export and domestic markets.

In a regulatory filing, the company said, “This is to inform you that the Board of Directors of the Company in its meeting held has approved to increase the processed fabric capacity at Vardhman Fabrics by about 31 million meters per annum with a total capital outlay of Rs 350 crore,” Vardhman Textiles said in a regulatory filing.

Vardhman Textiles manufactures high-end premium quality shirts for large retail brands like Van Heusen, Benetton, Sisley, and Colorplus, among many others.