Vardhman Textiles Limited has announced a strategic expansion of its Garment Unit in Punjab to support long-term growth. The company plans to increase its shirt manufacturing capacity from 2.20 million to 4.50 million shirts per annum. This initiative, requiring an investment of Rs. 125 crore, is expected to be completed by the end of Financial Year 2026-27, enabling the company to better serve high-value buyers and strengthen international partnerships.
Strategic Manufacturing Growth
Following a Board of Directors meeting held on May 7, 2026, Vardhman Textiles has finalized plans to significantly boost its production capabilities. The company is set to scale up its existing shirt manufacturing capacity of 2.20 million units annually to approximately 4.50 million units per year. Currently operating at roughly 95% capacity utilization, this expansion is a proactive measure to meet rising demand.
Investment and Financial Outlook
The expansion project involves an estimated capital outlay of Rs. 125 crore. The company plans to finance this development through a mix of internal accruals and debt. The project is slated for completion by the end of Financial Year 2026-27.
Future Strategic Benefits
The rationale behind this investment is to broaden the company’s product portfolio and enhance its competitive edge in the textile market. By increasing scale, Vardhman aims to secure larger order volumes and cultivate long-term relationships with premium international brands. Furthermore, the expansion is expected to optimize cost structures and overall manufacturing efficiency, positioning the company for sustained growth in the global garment sector.
Source: BSE
