RSWM Boosts Cotton Yarn by investing ₹315 Crore in Rajasthan
Nov 16, 2023
RSWM Limited, the flagship company of the USD 1 billion LNJ Bhilwara Group, stands as one of India’s leading manufacturers and exporters of synthetic and blended spun yarns. Under the visionary leadership of Mr. Riju Jhunjhunwala, Chairman and Managing Director of RSWM Ltd, the textile company exports a wide range of yarns and fabrics to approximately 90 countries worldwide. The company’s 11 state-of-the-art manufacturing plants in various parts of Rajasthan produce high-quality cotton, mélange, synthetic, sustainable, greige, dyed, novelty, and value-added yarns, along with knitted and denim fabrics. RSWM Ltd’s commitment to innovation and sustainability has earned it a distinguished position in the global textile industry.
The Banswara unit of RSWM Ltd currently boasts a total spindle capacity of 95,376. The new investment is expected to add 51,072 spindles to this capacity in the fiscal year 2023-24. Over the years, RSWM Ltd has established itself as a prosperous textile hub and has gained prominence as a key player in the Indian textile industry. The company’s high-quality yarns are supplied to over 90 countries worldwide, positioning RSWM Ltd as a frontrunner in all segments of the textile market.
The decision to expand capacity comes as a response to the increasing demand for cotton yarn in the industry. According to ICRA’s latest report, the demand for the cotton yarn industry is expected to witness nearly 10% growth in volume terms in FY2024. Similarly, the CareEdge report predicts a 5-7 percent growth in sales volume for the Indian cotton yarn industry. Moreover, the operating margin is anticipated to expand by 1-1.50 percent in this fiscal, owing to the alignment of domestic cotton prices with international prices and a shift in demand from competing nations.
Expressing his enthusiasm for the expansion, Riju Jhunjhunwala, Chairman & MD of RSWM Ltd, stated, “We are elated with this expansion. We hope that this decision will help fuel the next stage of growth for the cotton industry in India. We also seek to strengthen the economic ecosystem of the local region to provide jobs for the regional communities. This investment is also in line with the Indian Government’s vision of Atmanirbhar Bharat.”
Jhunjhunwala further emphasized the growth potential in India’s cotton-spinning industry, highlighting the extensive market abroad for 100% combed compact cotton yarn. He sees this expansion as a promising opportunity for the company to tap into new markets and bolster its global presence.
Beyond expanding capacity, RSWM Ltd’s vision for the plant includes creating over 525 direct and 125 indirect employment opportunities, with a strong focus on women’s upliftment by aiming for 30% representation of women in the workforce. This investment aligns with the company’s commitment to sustainability and inclusive growth.
With RSWM Limited’s strategic investment, the cotton yarn industry in India is poised for further growth and advancement. The expansion project not only demonstrates the company’s commitment to meeting the rising demand for cotton yarn but also reflects its dedication to contributing to the economic development of the region and empowering local communities. As RSWM Ltd takes another stride towards progress, it reinforces its position as a key player in the global textile landscape.
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