Vishal Fabrics update on its Rs 30 cr brownfield expansion

15 Apr 2022 , 07:03 PM

Vishal Fabrics has announced that the company has added a new denim line which commenced operation at the end of March 2022 with a total capacity of 10 Mn Mtr per annum.

Further, the company plans to add 2nd denim line with 10 Mn Mtr per annum capacity which will commence at the start of H2FY23. The company currently has 8 existing denim lines with an annual capacity of 80 Mn Mtr per annum. With these additional 2 lines, annual capacity will increase to 100 Mn Mtr per annum at Dholi Unit.

These investments are expected to increase the revenue by ~Rs. 160 crore/per line considering the full year of operation.

The total capex will be ~ Rs. 30 crore and will be funded by internal accruals. The capex for these lines directly ramps up production of Denim Fabric without incurring any additional capex for any other process/machinery. With these two additional new lines, the company will be able to cater to domestic and export demand for Denim fabric.

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