Vardhman Textiles Limited announces expansion of Punjab Garment Unit

In a significant move to bolster its manufacturing footprint, Vardhman Textiles Limited has officially announced a substantial capacity expansion of its Garment Unit located in Punjab. The decision was formalized during a Board of Directors meeting held on May 7, 2026.

Scaling for Global Demand

The expansion comes at a time when the company's existing facilities are operating at near-peak performance. Currently, the Garment Unit produces approximately 2.20 million men's shirts per annum, maintaining a high capacity utilization rate of roughly 95%.

To meet growing market needs, the Board has approved a plan to more than double this output. The proposed addition will increase the production capacity from the current levels to approximately 4.50 million shirts per year. The company aims to complete this ambitious project by the end of the 2026-27 Financial Year.

Financial Commitment and Strategic Rationale

Vardhman Textiles has earmarked an investment of approximately Rs. 125 crore for this project. The funding for the expansion is set to be managed through a combination of internal accruals and debt.

The rationale behind this capital expenditure is multi-faceted. By increasing its volume, the company intends to:

- Broaden its product portfolio to attract high-value buyers.

- Secure larger order volumes, facilitating long-term partnerships with premium international brands.

- Optimize operational costs and improve overall capacity utilization.

Source : Equity Bulls

Keywords

VardhmanTextiles CapacityExpansion Capex GarmentUnit Punjab