Welspun India Earmarks Rs 600 Cr Capex for Expansion Projects
Welspun India 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. Welspun India said in the flooring vertical, the expected annual capacity at full capex for soft flooring is 16.3 million square metres and 10.7 million square metres for the hard flooring segment. "On the back of expanded capacities and with customer demand remaining to be buoyant, the top line of the company is expected to grow upwards of 15 per cent in FY22 (with home textile over 10 per cent, flooring over 125 per cent, and advanced textiles over 50 per cent)," the annual report said. 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.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," Goenka said.
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