Textile maker Vardhman Spinning & General Mills Ltd has announced plans to double its fabrics capacity to meet an expected sharp rise in demand.

The company, which produces both yarn and fabrics, will expand capacity at a cost of INR2 billion by adding new machines at its Himachal Pradesh-based plant.

Investment of about INR1.25bn will be made in the next financial year beginning April, and will be largely funded by domestic bank loans.

"We are firming up a plan to double our annual fabric capacity to 50 million metres over the next two years to increase our supply to garment and apparel producers," executive director Sachit Jain said.

Chief financial officer Neeraj Jain added that there were no plans to significantly increase the company's exports following the expansion, due to increased demand in the local market.

Vardhman currently exports up to 3000 metric tonnes of yarn a month.