Vardhman Textiles Limited, one of India’s leading integrated textile manufacturers, has announced a significant capacity expansion at its Vardhman Fabrics facility in Budhni, Madhya Pradesh. At its Board of Directors meeting held on November 28, 2024, the company approved a project to increase the processed fabric capacity by approximately 31 million meters per annum. The expansion, with an estimated capital investment of ₹350 crore, reflects the company’s commitment to meeting the growing demand for processed fabrics in both domestic and export markets.
Details of the Expansion
The expansion project will increase Vardhman Fabrics’ processed fabric capacity from the current 175 million meters per annum to 206 million meters per annum, marking an 18% increase in production capability. This strategic move comes as the existing capacity utilization at the Budhni facility is already above 90%, demonstrating robust demand and operational efficiency.
Key Highlights of the Project:
- Existing Capacity: 175 million meters per annum
- Proposed Capacity Addition: 31 million meters per annum
- Total Investment: ₹350 crore (approx.)
- Financing Mode: Internal accruals and debt
- Timeline for Completion: Within two years
The project aligns with Vardhman Textiles’ vision of strengthening its market presence while addressing the rising demand for high-quality processed fabrics.
Strategic Rationale
The decision to expand is driven by the growing demand for processed fabrics across both domestic and international markets. With fabric exports gaining traction and an increasing preference for premium quality textiles in the domestic market, this expansion positions Vardhman to cater to emerging opportunities effectively.
The company’s focus on innovation, sustainability, and customer-centric solutions has earned it a reputation as a trusted supplier globally. By leveraging its strong market position, Vardhman aims to enhance its capacity to capitalize on future growth prospects while continuing to deliver high-value products to its clients.
The proposed capacity addition at Vardhman Fabrics, Budhni, underscores Vardhman Textiles Limited’s proactive approach to scaling its operations in response to market dynamics. With a clear timeline, substantial investment, and a robust financing strategy, the company is set to further consolidate its leadership in the textile sector. As the project takes shape over the next two years, it is expected to contribute significantly to Vardhman’s growth trajectory, enabling the company to remain at the forefront of India’s textile manufacturing landscape.