In a significant move to enhance its production capabilities and embrace sustainable energy solutions, Vardhman Textiles has announced a series of strategic investments and expansions. The company’s Board of Directors, in its meeting on July 30, 2024, approved the enhancement and modernization of its spinning and fabric business capacities, along with the installation of biomass-based boiler projects.
Expansion and Modernization Plans
In May 2024, Vardhman Textiles’ Board approved a capital outlay of approximately Rs. 2,000 crore for the enhancement and modernization of its existing spinning and fabric business capacities, as well as the generation of green power. However, in a recent revision, the Board decided to increase the spinning capacity by installing 6,624 rotors instead of the previously approved 5,520 rotors. This change will result in the addition of 56,744 equivalent spindles, up from the initial plan of 50,000 equivalent spindles.
Sustainable Energy Initiatives
During the same meeting on July 30, 2024, the Board also approved the establishment of biomass-based boiler projects. This initiative aligns with the company’s Environmental, Social, and Governance (ESG) responsibilities and aims to meet the requirements of its customers. The biomass-based boiler projects will be financed through internal accruals and debt, with an expected completion timeline of two years.
The addition of the biomass-based boiler projects will require an additional capital outlay of approximately Rs. 500 crore. Consequently, the total capital expenditure (Capex) for the company will increase to approximately Rs. 2,500 crore, up from the previously planned Rs. 2,000 crore. Importantly, the new boiler projects will not impact the spinning and fabric capacities of the company.
Vardhman Textiles’ latest expansion and green energy initiatives reflect its commitment to growth, modernization, and sustainable practices. With a significant investment in both production capacity and environmentally friendly projects, the company is poised to strengthen its market position and meet the evolving demands of its customers while adhering to its ESG goals.
