New Delhi, August 05, 2023: RSWM Ltd. has made a major announcement today. The Company, in line with its business ethos, has decided to invest ₹315 crore for the expansion of its compact cotton yarn capacity at Lodha Unit, Banswara (Rajasthan). Currently, the Company’s Banswara unit’s total spindle capacity is 95,376, and with the new investment, the spindle capacity is expected to increase by 51,072. The period in which the capacity is supposed to be added is FY 2023-24.
Over the years, RSWM Ltd has grown into a prosperous textile hub and has established a dominant position in the Indian textile space. The organization has been the frontrunner in all segments; in over 90 countries globally, the organization supplies high-quality yarns.
The decision to expand capacity comes due to the growing demand for cotton and the cotton industry. According to ICRA’s latest report, the demand for the cotton yarn industry is expected to improve by close to 10% in volume terms in FY2024 on a yearly basis. Additionally, statistics per the CareEdge report reveal a similar story that the Indian cotton yarn industry is likely to record 5-7 percent growth in sales volume. As per operating margin, it is expected to expand by 1-1.50 percent in this fiscal due to domestic cotton prices alignment with international prices and a shift in demand from competing nations.
Riju Jhunjhunwala, Chairman & MD, RSWM Ltd, said that. “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.”
Further commenting on the expansion, Mr. Jhunjhunwala says, “Our country has one of the fastest-growing cotton-spinning businesses in the world. Moreover, there is an extensive market abroad for 100% combed compact cotton yarn. And this is an opportunity for us to tap.”
He further added that the plant further envisions creating over 525 direct and 125 indirect employment opportunities with a focus on women upliftment by targeting 30 % of women employees in the workforce.