The execution risk of home textiles major Welspun India's Rs 1,123 crore tile manufacturing project at Telangana would be moderate, India Ratings and Research (Ind-Ra) said Monday.
"The execution risk will be moderate as the company has an established track record of executing similar large projects with standard technology," the agency said in a rating note on Monday.
"The company is setting up a high-end integrated tile manufacturing facility in Chandanvelly, Telangana, which is scheduled to be completed by 3QFY'20," Welspun officials said.
The company will incur capex of Rs 1,123 crore which will be funded by Rs 815 crore of debt guaranteed by WIL, and the remainder from equity of WIL.
"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.
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