Top India Towel Maker to Boost Capacity to Meet Overseas Demand

(Bloomberg) -- Welspun India Ltd., which says it makes every fifth towel sold in the U.S., will spend 6.57 billion rupees ($89.4 million) to boost manufacturing capacity to meet overseas demand, the company said.

It will increase towel manufacturing capacity at its Anjar plant in western India by 20% to 102,000 tons a year, the Mumbai-based textile company informed in an exchange filing Saturday evening. It also plans to expand capacity of making rugs by 80% at its Vapi plant.

The investments will be spread through March 2023, and will start accruing benefits from the April quarter of 2022 with an annual revenue potential of about 12 billion rupees from second year of operation, it said. Welspun maintains its net debt guidance of 24 billion rupees for the financial year through March 2022.

Separately, its unit Welspun Flooring Ltd. will invest an additional 1.44 billion rupees toward de-bottlenecking of its Telangana plant in southern India, which also includes a new 25-megawatt renewable power plant.

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