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Vardhman Textiles Draws Ambitious Plan For Capacity Enhancement and Green Power

• By  Textile Excellence
• May 10, 2024

Industry veteran S.P. Oswal led Vardhman Textiles Ltd. has ambitious plans to expand production capacity in the coming 2 years. The Board of Directors of the company has approved a capacity enhancement and modernization plan of existing Spinning and Fabric manufacturing facilities as well as Green Power generation with a capital outlay of approx. Rs. 2,000 crore.

Existing capacity of Vardhman Textiles includes 12.37 lakh equivalent yarn spinning spindles and 175 million meter per annum of processed fabric. During the FY 2024, the company has produced 2,62,291 tons of Yarn, 2,044 lakh meters of Grey Fabric and 1,541 lakh meters of Processed Fabric. Vardhman Textiles is utilizing over 90% of its installed capacity and needs modernization and augmentation of capacity.

The details of proposed capacity expansion plan are as below:

§  Addition of 5,520 rotors and 17,000 ring spindles, totaling to about 50,000 equivalent spinning spindles

§  To installation of new plant to produce Technical Textiles with 15 lakh meters of fabric per month

§  Modernization schemes for yarn and fabric operations

§  Green Power generation through Solar, Wind or Hybrid Project (directly/ SPV mode)

§  Upgradation of existing IT system.

The capacity addition is proposed to bring better business synergies, competitiveness and to meet increased demand. Also, the modernization will enhance productivity of the business operations, the company said.

In the Q4 FY24, Vardhman Textiles recorded sales of Rs 2459.41 crore against Rs 2485.61 crore during the previous quarter ended on March 2023. However, Net profit of the company rose 26.36% to Rs 200.59 crore in Q4 FY24 as against Rs 158.74 crore recorded during the corresponding period last year.

On the full year basis, company’s net profit declined 20.57% to Rs 631.59 crore in the financial year ended on March 2024 as against Rs 795.16 crore during the previous financial year. Sales figures also declined 6.24% to Rs 9504.68 crore in FY 2024 as against Rs 10137.49 crore during the previous financial year ended on March 2023.

The capacity addition is proposed to bring better business synergies, competitiveness and to meet increased demand. Also, the modernization will enhance productivity of the business operations, the company said.