Welspun India is planning greenfield expansions in the next two months along with the establishment of a wholly owned subsidiary in United Kingdom to enhance their marketing operations in Europe.
"The capacity expansion will result in doubling the current capacity of 12,000 tonne to 24,000 tonne and will include setting up of new plants in Gujarat along with de-bottlenecking of the existing capacities", said B K Goenka, vice chairman & managing director, Welspun India.
The company is targeting a total investment of about Rs 300 crore (Rs 3 billion) for capacity expansion and the setting up of a subsidiary.
"The funds will be raised through equity as well as debts," he added.
Welspun currently is the world's fifth largest and Asia's largest manufacturer of terry towels with a current market share of 20 per cent of the total towel exports to the United States from India.
"Meanwhile, we are also expecting an estimated export of $50 million by 2010, since the quota regime expires in 2005 giving thrust to the export market," said Goenka.
For the current fiscal, the company is targeting an export of Rs 900 crore (Rs 9 billion). Strategic alliances with global brands for marketing and distribution, forward integration through retailing are also in the pipe line, he added.
The company is also set to tap the Rs 1,000 crore (Rs 10 billion) domestic market with the launch of their latest range of bath and bed products - Spaces.
"We are estimating to invest Rs 50 crore (Rs 500 million) in the next two years for this range and are looking at a revenue of about Rs 300 crore (Rs 3 billion)," said Deepali Goenka, director, Welspun India. A kitchen accessories range will also be introduced shortly, she added.
"Welspun will be routing all their domestic products through this new branding, and we expect to capture about 30 per cent of the domestic market in 3 years," said D Goenka.
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