GHCL to invest Rs 100 crore to expand its textile capacity

GHCL Ltd, one of the leading manufacturer of home textile, plans to expand its textile business capacity over the next 2-3 years with an investment Rs 100 crores. Of the total Rs 2400 crores top line recorded by the company last year, 40 percent was accounted for by textile business.

R S Jalan, managing director, GHCL Ltd, during a conference call on August 3, 2015 said that they have expansion plans in textile division and soda ash in the next three years.

GHCL has an integrated textile division. Its spinning facility – located near Madurai (Tamil Nadu) with a total installed capacity of 175,000 spindles and 3320 rotor – produce cotton and blended yarn. GHCL’s home textile plant is located in Vapi (Gujarat) with 162 air jet looms and 36 million metres (MM) of processing capacity. Out of the total textile business production, 68 percent is exported to US and 18 percent to Canada.

Speaking about the expansion plans for textile business, Jalan said that they foresee a good demand in the business in coming years and see a huge demand coming from their existing clients and new clients. They expect improvement in both top line and margin going forward.

Out of the Rs100 crores, GHCL plans to spend in expansion – Rs 50 crore will be invested in the home textile and the balance will be in the spinning business. In spinning business, the company will invest in the wind power which will be used for the spinning to reduce the power costs.

GHCL’s home textile products are predominantly exported worldwide to countries like United Kingdom, United States of America, Australia, Canada, Germany and other European Union countries as well.