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Welspun to invest Rs 6 bn for expansion

Aug 13, 2021
Welspun to invest Rs 6 bn for expansion

Mumbai

According to the annual report of Welspun India for 2020-21, the company has set aside Rs 6 billion in the ongoing fiscal for completing expansion projects across its three business verticals.

The company is expecting that its top line will grow by 15% in FY22 because of the expanded capacities and rising customer demand. As per the company's management, the company is planning to complete its expansion projects related to advanced textiles, home textiles, and flooring in FY22. These projects were in different stages of completion in FY21. The report further said that around Rs 6,000 million Capex spend in FY22 to complete these pending projects.

According to BK Goenka, Chairman, Welspun Group, the company is going to undertake capital-light capacity expansion to address growing demand. He further said that the Vapi and Anjar plants of the company operated at their maximum capacity to cater to the demand in FY21. As the demand is rising, the company is planning to expand its capacity by debottlenecking and rebalancing at both plants. He further added that the company has earmarked Capex of around Rs 2.25 billion over FY21 and FY 22.

As per Dipali Goenka, MD, Welspun India, since the external environment is still uncertain considering the entire Covid-19 situation, the company is trying to be resilient and adapting the needful changes.

Source – The Economic Times

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