Vardhman Textiles in South Africa

Vardhman Textiles Expands Operations Amidst Policy Shifts and Market Dynamics

Johannesburg, South Africa – October 5, 2025

Vardhman Textiles, a leading Indian textile conglomerate, has recently undertaken significant strategic initiatives to bolster its production capabilities and navigate evolving market conditions.

Expansion of Fabric Production Capacity

In November 2024, Vardhman Textiles approved a capital expenditure of approximately ₹350 crore to enhance its processed fabric capacity by 31 million meters per annum at the Vardhman Fabrics facility in Budhni, Madhya Pradesh. This expansion aims to meet the growing demand for processed fabrics in both domestic and export markets. The project is expected to be completed within two years, with funding sourced from internal accruals and debt. (financialexpress.com)

Government Policy Impact

In August 2025, the Indian government extended the exemption of import duty on raw cotton until December 31, 2025. This move is intended to alleviate raw material costs for domestic textile manufacturers and enhance export competitiveness. Following the announcement, Vardhman Textiles’ share price surged by up to 9%, reflecting positive market sentiment. (livemint.com)

Financial Performance

For the financial year 2022-23, Vardhman Textiles reported a consolidated net profit of ₹805 crore, with a turnover of ₹10,137 crore. The company’s EBITDA margin stood at 15%, a decrease from 27% in the previous financial year. The board of directors recommended a dividend of ₹3.50 per share. (indianexpress.com)

Strategic Outlook

Vardhman Textiles continues to focus on expanding its fabric production capacity and modernizing operations to improve efficiency and product quality. The company is also exploring opportunities in technical textiles, including synthetic fabrics for specialized applications. These initiatives are part of Vardhman’s strategy to strengthen its position in the global textile market. (textileinsights.in)

Note: The information provided is based on available sources as of October 5, 2025.