Vardhman Textiles to Boost Processed Fabric Capacity by 31 Million Meters with Rs 350 Crore Expansion Plan

The share price of Vardhman Textiles Limited (VTL) recorded a rise of over 1% on Thursday, November 28, 2024. The stock is currently trading above its 20-day, 50-day, and 200-day moving averages, underscoring its strong technical position. Adding to the bullish outlook, VTL’s 20-day moving average (DMA) recently crossed over the 50-DMA, a bullish crossover. 

Expansion Plans Announced by Vardhman Textiles

In a key development, the Board of Directors of Vardhman Textiles announced plans to expand the company’s processed fabric capacity at its Budhni plant in Madhya Pradesh. The project will increase capacity by 31 million meters per annum, enhancing the current capacity of 175 million meters.

Key Details of the Expansion Plan

1. Existing Capacity: 175 million meters per annum.
2. Current Utilization: Above 90%, reflecting robust demand.
3. Proposed Addition: 31 million meters per annum.
4. Investment Outlay: Estimated at Rs 350 crore, funded via internal accruals and debt.
5. Timeline: The project is expected to be completed within two years.
6. Objective: To meet growing demand in both export and domestic markets.

Strategic Implications for VTL

The expansion aligns with Vardhman Textiles’ strategy to capitalize on increasing demand in the textile industry, particularly for processed fabrics. With domestic and international markets showing steady growth, the added capacity will enhance the company’s ability to cater to larger orders and strengthen its market presence.

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