GHCL Increasing its Production Capacity Looking at supplying Home Textiles to Bharti Walmart

With the FDI in retail being opened up, home textiles and soda ash player Gujarat Heavy Chemicals Limited (GHCL), is considering supplying made-ups to retailers like Bharti Walmart and IKEA. “Besides exporting our home furnishings to top international retailers, we are already supplying our home textile products to Future Group. Now with Bharti Walmart and IKEA opening their retail outlets in India, we look forward to supplying our products to them and we have alreadybegun expanding our manufacturing capacity at our Vapi plant. We are yet to initiate any talks with them,” sharesNeeraj Jalan, Vice President, Home Furnishing Division, GHCL.

The company is looking at a production capacity increase of 15 per cent from the current 100,000 metres per day of home textiles, apart from increasing its capacity utilization from 85 per cent to 100 per cent. In terms of value, GHCL has a capacity of $ 120 million (Rs. 645 crore roughly) against which it’s earning a topline of $ 100 million (Rs. 530 crore approximately).

“We would like to increase this capacity utilization. Moreover, we are also looking at expanding our production capacity further by 15 per cent in areas like spinning, weaving, stitching and utilities,” states Jalan.