Vardhman Textiles on Thursday announced that its board of directors approved to increase the processed fabric capacity at Vardhman Fabrics, Budhni, Madhya Pradesh, by about 31 million meters per annum with a total capital outlay of approximately Rs 350 crore. The company has an existing processed fabric capacity of about 175 million meter per annum and the current capacity utilization is above 90 per cent.
In a regulatory filing, the company said, “This is to inform you that the Board of Directors of the Company in its meeting held today i.e. 28th November, 2024, has approved to increase the processed fabric capacity at Vardhman Fabrics, Budhni, Madhya Pradesh by about 31 million meters p.a. with a total capital outlay of Rs 350 crore (approx.).”
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The proposed capacity addition is to be done within two years and the capital expenditure, the Vardhman Textiles said, would be funded from either internal accruals or debt.
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With the capacity addition, the company plans to meet increasing demand for processed fabric in both export and domestic markets.
In October, Vardhaman Textiles had declared its Q2FY25 results with a topline increase of 4.38 per cent YoY and a remarkable profit surge of 46.57 per cent YoY. In comparison to the previous quarter, the company’s revenue recorded a growth of 8.4 per cent, and the profit saw a decrease of 17.47 per cent.
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