Vishal Fabrics has added a new denim line which has commenced operation at the end of March 2022.
The denim line has a total capacity of 10 million mtr per annum. Further, the company plans to add second denim line with 10 million mtr per annum capacity which will commence at the start of H2/FY23.
The company currently has eight existing denim lines with an annual capacity of 80 million mtr per annum.
With these additional two lines, annual capacity will increase to 100 million mtr per annum at Dholi unit. These investments are expected to increase the revenue by approximately Rs. 160 crores per line considering the full year of operation.
The total capex will be around 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.