Home textile major Welspun India, the flagship company of diversified Welspun group, is investing Rs 1,000 crore to build a factory to produce yarn and fabric in Gujarat.
"In the next 18 months we will invest Rs 800-1,000 crore to set up a factory. We will fund it through internal accruals and term loan," said Rajesh Mandawewala, MD, Welspun Group.
Welspun's textile division's profit more than quadrupled in the third quarter to Rs 78 crore while sales more than doubled to Rs 1,339 crore.
"We currently produce only 35% of our requirement for yarn 50% of fabric in-house. We aim to produce 75% of our yarn and fabric in-house," he said. "The interest repayment scheme for yarn factories, offered by both state and central governments, makes debt very cheap."
The company had added 100 stores last year in India, taking the total number of outlets to 250.