Image Source : Textile Insights
Vardhman Textiles Limited, one of India’s leading producers of yarn and fabrics, has commenced commercial production of 18,000 new spindles, marking a fresh chapter in its ongoing capacity expansion. This milestone signals the company’s intent to ramp up scale, operate with greater efficiency, and capitalize on both domestic and global demand for high-quality textile products.
Key Highlights: What This Expansion Means
The 18,000 new spindles represent a significant addition to the company's already massive spinning capacity, now standing at over 1.23 million spindles—the largest in India.
This project is part of a broader investment plan that involves modernizing production, expanding processed fabric and synthetic weaving capacities, and strengthening green, sustainable manufacturing initiatives.
The company’s capital expenditure program totals over Rs 3,500 crore, aimed at reinforcing its position in the global textiles market by adding new spinning units, advanced automation, and product diversification.
Recent Financial Performance and Capacity Utilization
For the quarter ended June 2025, Vardhman reported a 3.2% rise in year-on-year revenue to Rs 2,342 crore. Yarn production for the period climbed to 68,639 metric tons, up 2.6% from last year.
Although operating margins dipped slightly, reflecting higher raw material and energy costs, the overall production ramp-up shows that market demand remains healthy.
Executives confirmed on their July 2025 investor call that newly added spindle and fabric capacity is expected to be fully utilized within two to three quarters, highlighting management’s confidence in ongoing yarn demand from both Indian and international customers.
Strategic Aims and Broader Expansion
The expansion is not limited to spinning; Vardhman is investing in boosting processed fabric output, with an 18% annual increase targeted at its Budhni plant. The plan also includes growing synthetic woven fabric output and upgrading existing machinery.
The driving rationale is to better serve brand partners in India and abroad, reinforce Vardhman’s supply resilience, and meet evolving requirements for premium, sustainable textiles.
A large part of the investment is dedicated to green projects, such as solar and wind power, underscoring the company’s commitment to cleaner production.
Implications for Investors and the Industry
Vardhman’s latest spindle commissioning is expected to give the company a production and efficiency edge, especially at a time when smaller or unviable competitors are under pressure from costs and raw material availability.
Industry analysts say the new capacity should help Vardhman consolidate market share and maintain its status as a supplier of choice for major apparel brands and retailers.
The company’s modernization drive and proactive management of capacity utilization suggest continued focus on long-term profitability and value creation.
Looking Ahead
As the new spindles kick into full operation, investors and industry watchers will be watching product yields, margin recovery, and how quickly the company translates expanded physical capacity into higher sales and returns. With its ambitious modernization and sustainability agenda, Vardhman Textiles is positioning itself at the forefront of India’s fast-evolving textile industry.
Sources: ScanX, MarketSetup, Indian Textile Magazine, Fashion Network, Corporate Announcements
Advertisement
Advertisement
