Vardhman Textiles to Expand Garment Unit Capacity by ₹125 Crore
Vardhman Textiles' Board approved a ₹125 crore capacity expansion for its Garment Unit. Production of men's shirts will increase from 2.20 million to 4.50 million pieces annually by FY27. Funding will come from internal accruals and debt.
The expansion of garment unit capacity and investment of ₹125 crore is a material development for the company, potentially leading to increased revenue and market share, thus having a medium impact.
The company's decision to expand its garment unit capacity with a significant investment and clear rationale indicates a positive outlook and a strategic move towards growth.
Vardhman Textiles Limited (VTL) announced today, May 7, 2026, that its Board of Directors has approved a significant expansion of its Garment Unit in Punjab. The existing capacity for men's shirts is 2.20 million pieces per annum, with a utilization rate of approximately 95%.
The expansion plan aims to increase the production capacity of shirts from the current 2.20 million pieces per annum to approximately 4.50 million pieces per annum. This capacity enhancement is expected to be completed by the end of the Financial Year 2026-27.
The company plans to invest approximately ₹125 crore in this expansion, which will be financed through internal accruals and debt. The rationale behind this strategic move is to broaden VTL's product portfolio, attract high-value buyers, secure new order volumes, optimize costs, and enhance capacity utilization. This expansion is anticipated to strengthen long-term relationships with premium international brands.
The Board meeting commenced at 10:00 a.m. and concluded at 12:45 p.m. on May 7, 2026.
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Vardhman Textiles Limited filed this with the NSE as a statutory disclosure, categorised under capex. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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