Vardhman Textiles to install Vortex Machines worth Rs600cr; share slips over 7%

24 Jan 2022 , 12:23 PM

Vardhman Textiles Ltd. said in the regulatory filing on Saturday that the board has approval of further expansion in its Capacity by installing Vortex Machines equivalent 70,000 spindles (approx.) entailing a cost of around Rs600cr (approx.). The company shall finance the said expansion from its internal accruals and debt.

The company believes that the capacity addition will bring better business synergies, competitive advantage and shall meet the increased demand.

Prior to this, the company has enhanced its capacity earlier in October 2021 with the approval of its Board of Directors, by installing 1.65 lakh equivalent spindles with a cost of about Rs. 1,400 crore (approx.).

The company’s existing capacity is 12 lakh equivalent spindles approximately, with an existing capacity utilization of 95%.

It is is currently trading at Rs2,534.80 down by Rs178.4 or 6.58% from its previous closing of Rs2,713.20 on the BSE. The scrip opened at Rs2,782 and has touched a high and low of Rs2,782 and Rs2,501 respectively.