Vardhman Textiles to invest Rs 2,000 cr in expansion and modernization.
Vardhman Textiles has outlined an expansion plan worth Rs 2,000 crore. The plan includes execution of Rs 1,000-crore expansion and modernization projects for the spinning division. For this division, Vardhaman Textiles plans to launch a new open-end project to add approximately 35,000 spindles at a cost of around Rs 300 crore. The company also plans to replace 60,000 existing spindles with 77,000 new spindles, resulting in a net addition of 17,000 spindles. These projects will be completed by May 2025.
Also in its plans are enhancing fabric manufacturing capacity by undertaking two major initiatives: routine modernization and debottlenecking, and a new project focused on manmade fiber-based fabrics, with an initial investment of approximately Rs 300 crore, to be completed by 2025.
Vardhman Textiles plans to increase consumption of green power. Currently, green energy accounts for only 2.5-3 per cent of the company’s total power usage. It now plans to boost this to 25-30 per cent through significant investments in solar and wind energy. This green power initiative aligns with global sustainability trends and is both commercially viable and environmentally responsible.
The Rs 2,000 crore investment by Vardhman Textiles is driven by several strategic considerations. The ‘China Plus One’ trend, where global brands diversify their supply chains by sourcing from countries other than China, has created a favorable environment for Indian textile companies. Additionally, recent government policy changes, such as the introduction of the RoDTEP scheme, have enhanced the feasibility and competitiveness of using imported cotton in production.
Vardhman Textiles is also making a significant investment in technical textiles
production, starting with an initial capacity of 15 lakh meters per month. The first phase of this project will focus on producing 70-80 per cent polyester and 20-30 per cent nylon textiles for applications such as sportswear, activewear, industrial uses, and defense materials. This strategy move will involve an investment of Rs 320-330 crores for its first phase.
Leveraging existing relationships with clients like Columbia and Decathlon, Vardhman aims to diversify its customer base to include new markets and industries. The company is optimistic about the synergies with current customers and potential for expansion, with plans for a second phase contingent on the success of the initial setup.
