Welspun India, the textile arm of the Welspun Group, is taking to vertical integration in a big way to spur its margins in coming year. The company has also earmarked an investment of Rs 1,000 crore towards this over the next 12-18 months, which will take its raw material security on yarn and fabric from the current 35-40% to over 75%.
Further, the vertical integration project, which will result to a higher spinning and weaving capacity, is expected to be concluded up by FY14-end. The project requires installation of 170,000 spindles and 140 looms, which will potentially take the backward integration to almost 75%.
Welspun India manufactures home textile products in bed and bath segments such as bed linen, basic bedding, decorative bedding, terry towels, rugs and yarn.