Textiles firm Welspun India plans to invest up to Rs 1,000 crore in the next fiscal to scale up its yarn and cotton production at its two plants in Gujarat, as it aims to reduce dependence on external sources for raw materials.
The Mumbai-based firm, which exports over 90 per cent of its production, has also set a target to achieve a turnover of $1 billion in the next four years from $650 million at present.
"We are investing in vertical integration. In the next fiscal (2013-14), we plan to invest Rs 700 crore to Rs 1,000 crore on spinning and weaving equipment at our facilities," Welspun India Managing Director Rajesh Mandawewala told PTI.
He added that the company would expand its existing facilities at Vapi and Anjar by adding more weaving and spinning machines.
"We currently get around 40 per cent of our total requirement of yarn and fabric from our facilities. After expansion, it will go up to 75 per cent," Mandawewala said.
The company currently produces 44,000 metric tonnes of towels, 45 million meters of bed linen and 10,151 metric tonnes of rugs per annum.
On the company's future revenue target, Mandawewala said: "We have set a goal of achieving $1 billion over the next four years from the current $650 million."
The company expects to achieve the target as both its international and domestic markets continue to do well, he added.
Around 60-65 per cent of the company's revenues come from the US market. It is expecting to grow in various other territories as well, including Brazil, Canada and China.
"..If Free Trade Agreement (FTA) comes through with Europe, then we expect this market to become as big as the US. There is huge potential for growth for us (in Europe)," Mandawewala said.
Europe contributed around 14 per cent to the company's total revenues in 2012. "In 2013, we expect it to rise to 20 per cent," Mandawewala added.
Commenting on the domestic operations, he said the entry of multinational retailers in India through the opening up of FDI would also help in pushing up sales.
Welspun India produces home textiles including bed linen, basic bedding, decorative bedding terry towels, rugs and bathrobes. It has two manufacturing facilities at Vapi and Anjar in Gujarat.