Vishal Fabrics announces brownfield expansion

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April 2022 – Vishal Fabrics Limited (BSE: 538598) (NSE: VISHAL) 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 crores/per line considering the full year of operation.

The total capex will be ~ Rs. 30 crores 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.

Commenting on the above, Mr. Brijmohan Chiripal, Managing Director, said, “These investments will lay the groundwork for the Company’s next phase of expansion. These investments will further enhance our market reach and grow the market share of the Company in the Denim Segment.”

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