Welspun India, Asia's largest and the 2nd largest Terry Towel producers in the World based in Mumbai, as part of its expansion plan would be making investment of Rs 2,500 crore in their textile business over the next 12 months period t to expand manufacturing capacities.

The new facility will be involved in doubling Welspun's spinning capacity to over 3,00,000 spindles, thereby fulfilling nearly 70 percent of the fine and super fine yarn requirements of the company.

This will also help the company strengthen its core competencies of quality and innovations. The company will invest into modernization and expansion of its towel manufacturing capacity at Vapi unit in Gujarat.

BK Goenka, chairman of textiles-to-steel Welspun Group, said that the Rs 2,500-crore expansion will be funded through internal accruals and debt. While Rs 700 crore would be contributed from the company's side, the remaining will be raised through borrowings.

Currently, export contributes almost 97 percent of Welspun's total textile revenue of over Rs 6,000 crore. Its export markets are US, Europe, Japan and Australia, among others.

Welspun have set up the country's largest 1,70,000 spindles spinning capacity facility at Anjar with an investment of around Rs 800 crore, which was inaugurated by Gujarat Chief Minister Anandi Patel. The unit will in a big way help in providing job opportunities, said BK Goenka, chairman of textiles-to-steel Welspun Group on Saturday.

According to Gujarat Finance Minister Saurabh Patel, the Welspun project reflects the ethos of the state government's recent 'farm-factory-fabric-fashion-foreign' textile policy.

The state government will consider the industry's demand to set up mega textile parks to boost growth of the key sector.

Union Minister of State for Textiles Santosh Kumar Gangwar said that the sector has huge growth potential in India and his Ministry has recommended to the Prime Minister to introduce MNREGA scheme for textile industry, which is the second largest employment generator.