On July 2, 2025, GHCL Textiles Limited officially commenced commercial production at its newly added Meenakshi section of the Paravai Unit located in Madurai, Tamil Nadu. This milestone was communicated to both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, 2015.
Strategic Expansion to Meet Growing Demand
The Meenakshi section marks a significant expansion for GHCL Textiles, reflecting the company’s strategic focus on increasing its production capacity and enhancing operational efficiency. The existing Paravai unit, operating at an impressive 99% utilization rate with 1,99,440 ring spindles, will now benefit from an additional 25,536 ring spindles—bringing the total spindle capacity to 2,24,976.
Investment and Funding
This expansion project has been implemented with a total investment of ₹215 crore, which has already been fully deployed. Notably, the entire funding was carried out through internal accruals, underlining the company’s robust financial health and prudent capital management practices.
Rationale Behind the Expansion
The company has clearly stated that the primary objective behind this capacity enhancement is to support its ongoing business growth. With demand in the textile sector remaining resilient and evolving, GHCL Textiles aims to stay competitive by scaling up its capabilities and strengthening its manufacturing infrastructure.
Operational Readiness and Timely Execution
The commencement of production on the scheduled date (July 2, 2025) highlights GHCL Textiles’ commitment to timely execution and project management. It also signals the company’s readiness to capitalize on the increasing demand and to deliver high-quality textile products more efficiently.
GHCL Textiles’ proactive approach in expanding its capacity through the new Meenakshi section of the Paravai Unit reinforces its position as a key player in India’s textile manufacturing landscape. By relying on internal resources and ensuring near-full capacity utilization, the company is poised for sustainable growth and value creation for its stakeholders. Investors and market watchers will be closely observing how this expansion translates into enhanced revenues and profitability in the coming quarters.
