September 20, 2021 05:03 PM
Home textiles major Welspun India NSE -1.86 % has earmarked capital expenditure of Rs 600 crore in the ongoing fiscal for completing expansion projects across its three business verticals, according to the company’s annual report for 2020-21. The company expects its top line to grow by over 15 per cent in FY22 on the back of expanded capacities and with customer demand remaining buoyant.
“The expansion projects of flooring, advanced textile, and home textile businesses, which were in different stages of progress in FY21 will get completed in FY22,” the company’s management said in its discussion and analysis in the report.
It further said, “Capex spend in FY22 to complete these projects is expected to be around Rs 6,000 million.” In his address to the company’s shareholders, Welspun Group Chairman BK Goenka said Welspun India would undertake capital-light capacity expansion to address growing demand.
“To cater to the demand, our plants at Vapi and Anjar operated at peak capacity in FY21. With demand continuing to rise, we are expanding capacity through debottlenecking and rebalancing at both the plants, which will lead to increased capacity for towels, bed linen, rugs, and carpets,” Goenka said.
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He further said, “We have earmarked capex of around Rs 225 crore over FY21 and FY22, and will see the benefits accrue from as early as Q1 FY22.”
In the home textile segment, the company has an annual capacity of 80,000 MT for bath linen, 90 million metres for bed linen, 10 million square metres for rugs and carpets. Capacity utilisations for these stood at 88 per cent, 77 per cent and 82 per cent respectively in FY21, the annual report said.
For advanced textile, the annual capacity for Spunlance was 10,000 MT with capacity utilisation of 92 per cent last fiscal. The same for needle punch was 3,000 MT with capacity utilisation of 34 per cent, while that of wet wipes was at 75 million packs and capacity utilisation of 28 per cent, it added.