Vardhman Textiles Limited has announced a Rs. 2000 crore investment plan to modernize operations, enhance sustainability, and seize new market opportunities. The company aims to increase its capacity by adding 5,520 rotors and 17,000 spindles, totaling about 50,000 spindles. Additionally, Vardhman will invest in new capacity for technical textiles, aiming to produce 15 lakh meters of fabric per month.
The investment will be allocated as follows: Rs. 1000 crore for the spinning division modernization, expected to complete by May 2025; Rs. 300 crore for a new manmade fiber-based fabrics project, addressing a gap in India’s textile industry; and a significant increase in green energy usage from 2.5-3% to 25-30% through solar and wind energy investments.
Green Energy Commitment
Vardhman plans to increase its green power consumption from 2.5-3% to 25-30% through solar and wind energy investments. This initiative aligns with global sustainability trends and is both commercially viable and environmentally responsible.
Strategic Reasons for Investment
The investment is driven by the “China Plus One” trend, where brands are diversifying their supply chains away from China, benefiting Indian textile companies like Vardhman. Government policy changes, such as the RoDTEP scheme, have also made importing cotton more competitive.
Technical Textiles Investment
Vardhman is investing Rs. 320-330 crore in technical textiles, starting with an initial capacity of 15 lakh meters per month. The first phase will produce textiles for sportswear, activewear, industrial uses, and defense materials, focusing on 70-80% polyester and 20-30% nylon.
Spinning Capacity Expansion
The company is launching a new open-end project equivalent to 35,000 spindles, costing around Rs. 300 crore. Additionally, it will modernize 60,000 existing spindles, replacing them with 77,000 new spindles, adding a net of 17,000 spindles.
Vardhman Textiles’ Rs. 2000 crore investment plan underscores its commitment to modernizing operations, enhancing sustainability, and capturing new market opportunities. This expansion will help the company strengthen its competitive edge and drive growth in both traditional and technical textiles sectors.
