Vardhman Textiles plans to add another 1,00,000 spindles by 2020

Vardhman Textiles Ltd
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Vardhman Textiles Ltd. is planning to increase its production capacity by 2020. In FY 2017-18 the company spent about Rs. 300 crores as capex, out of which Rs. 105 crores was towards yarn while the rest was for fabric.

The company now proposes to invest about Rs. 1,400 crores in the next two years as capex, to be segregated equally between yarn and fabric. The investment would be strategically used to add approximately one lakh spindles. It is also expanding its total fabric capacity from the current 140 million metres per year to 180 million metres by FY19-20. Although the additional production lines are estimated to be ready by February / March 2019, it would take time to utilise them optimally, and the full year impact of the same would be seen only by 2020.

Vardhman continued to modernise facilities with the objective to enhancing moderating costs and operating efficiencies, and achieving qualitative consistency. Confident that there would be a greater need for technologies in the days ahead, the company has formulated a plan for upgradation of the old technology wherever it is impacting the quality of production, and based on this plan it is executing its modernisation strategy.

With more than five decades of its presence, Vardhman is today among the leading textile conglomerates in the country. With a humble beginning made in 1965, the Vardhman Group has evolved over the years into a modern-day textile major under the dynamic leadership of its Chairman, Mr. S.P. Oswal.

Vardhman today stands as an epitome of perpetual business growth and rich industry experience. Engaged in the business of manufacturing yarn, fabric, acrylic fibre, garments, sewing threads and alloy steel, the group has over the years developed as a business conglomerate with presence in India and in 75 countries across the globe. It is one of India’s largest textile manufacturers with a substantial market share and is a sustainable business model.

Vardhman invested around Rs. 300 crores in FY18 towards modernization of its assets and enhancement of capacity. The company implemented capacity expansion at its processing unit in Baddi with the installation of an additional processing unit of 30 mmpa along with capacity enhancement in the printed fabric line. This is expected to widen the company product offerings in the yarn dyed segment and also help service its clients better. Vardhman has also initiated the setting up of additional loom shed in Baddi for installing 224 wider-width looms. This will again help in balancing its additional processing fabric requirements.

Vardhman manufactures quality cotton, synthetic and blended yarns marketed to prominent labels within India and abroad. The company is a one-stop shop for all kinds of spun yarn offering a variety of contemporary blends and shades. Yarn constitutes the largest business at Vardhman with over 1.1 million spindles and a capacity to manufacture over 580 MT of yarn per day.

Vardhman produces almost every grade across different specialised greige and dyed yarns in cotton, polyester, acrylic and a variety of blends along with the value-added ones. The company also manufactures organic cotton, melange, core spun yarns, ultra yarns (contamination controlled), gassed mercerised, superfine yarns, slub and cellulose yarns and fancy yarns for hand knitting.

One of the very few vertically integrated fabric manufacturers in India turning out fabrics for both tops and bottoms in the apparel segment, the company is serving large retailers across the US, Europe, Asia and other emerging nations. It has pioneered the development of a wide variety of fabrics, thus emerging as a preferred supplier. Its fabric division has a weaving capacity of above 180 million meters per annum and processing capacity of over 140 million meters per annum across a wide specialty fabrics range.

Mr. S.P. Oswal, Chairman, Vardhman Group

Mr. S.P. Oswal, Chairman, Vardhman Group