Welspun Telangana project execution risk moderate: Ind-Ra
March 22, 2019 - India
The execution risk of home textiles firm Welspun India's ₹1,123-crore tile manufacturing project at Chandanvelly in Telangana would be moderate as it has an established track record of executing similar large projects, India Ratings and Research (Ind-Ra) recently said in a rating note. The project is scheduled to be completed by the third quarter of fiscal 2019-20.
The company will incur capital expenditure of ₹1,123 crore, which will be funded by ₹815 crore of debt guaranteed by the company, and the remainder from equity of the company.
"As of December 2018, about Rs 370 crore of the capex was executed. The facility would reach optimum utilisation capacity in the next two-to-three years," Ind-Ra said.
The company had said facility for flooring solutions is the first of its kind in India and in currently imported from China and Turkey. The capacity of the plant would be 27 million square meters. (DS)