Top India towel maker to boost capacity

MUMBAI. Welspun India Ltd, which says it makes every fifth towel sold in the US, will spend Rs6.57 billion ($89.4 million) to boost manufacturing capacity to meet overseas demand, the company said.

It will increase towel manufacturing capacity at its Anjar plant in western India by 20 per cent to 102,000 tonnes a year, the Mumbai-based textile company said. It also plans to expand capacity of making rugs by 80 per cent at its Vapi plant.

The investments will be spread through March 2023, and will start accruing benefits from the April quarter of 2022 with an annual revenue potential of about 12 billion rupees from second year of operation, it said. Welspun maintains its net debt guidance of Rs24 billion for the financial year through March 2022. (Bloomberg)