RSWM, as a leader in the domestic and international textile industry, is renowned for its innovative mindset and visionary approach that has led to global associations. They demonstrate a deep understanding of both customer needs and environmental sustainability. By implementing strategies to produce high-quality yarns while minimising their carbon footprint, RSWM takes pride in offering a diverse range of natural hues, textures, blends, and unique yarn varieties.
During an insightful conversation with Mr B. M. Sharma, Jt Managing Director of RSWM LTD at Bharat Tex 2024, the TVC Media Team experienced a showcase of innovation and artisanal craftsmanship at the Global Textile Expo. This event highlighted RSWM’s commitment to weaving stories of elegance, sustainability, and trendsetting designs, bringing together industry leaders to exchange valuable insights and experiences.
Please tell us about the vision of the company.
The company’s vision, known as Vision 2030, aims to achieve significant growth through both organic and inorganic strategies within the next 5 years. The goal is to become a 10,000 cr company by the year 2030 by making strategic investments, entering new verticals, pursuing acquisitions, and expanding the capacity of existing plants.
What is your motto for innovation?
RSWM is one of the few companies in the yarn business that boasts a dedicated Innovation Center integrated with plant operations. The team of experienced professionals at the centre focuses solely on developing new yarn, conducting soft marketing, and ensuring its commercialization for mass production. This continuous process of innovation and production takes place round-the-clock at our Innovation Center, leading to the creation of high-quality yarn products.
How much investment is done for R&D and innovation?
Innovation and R&D have a dedicated budget separate from returns on investment, focusing on developing new yarn, fabric, and denim. The Fabric Innovation Center operates independently with its own budget for research and development, emphasising long-term investment rather than immediate returns. While not all new products may succeed in the market, the company views it as part of the innovation process. Approximately 10 CR is invested annually with a revenue of 4,000 CR, yielding a notable 7% growth in yarn and 30% growth in Denim products over the past 2 years.
What is your sustainability? What are you doing across all the sectors?
RSWM has deeply embedded sustainability values that date back to a time when the concept was not prevalent in the textile industry. Over the years, the company has proactively implemented various sustainability initiatives. Presently, 10% of energy consumption is sourced from green energy, equating to nearly 6 megawatts per day. Additionally, RSWM recycles approximately 60 lakh PET bottles daily as part of its sustainability efforts. Notably, the company has effectively managed post-consumer waste, achieving a 20% utilisation rate. RSWM undergoes a meticulous sustainability assessment process through a fortnightly sustainability index comprising 16 measurable projects. Units are evaluated based on set sustainability objectives, such as the consumption of green energy and the phase-out of fossil fuels like coal. RSWM is in the transition phase to exclusively use biofuels by replacing coal with multi-fuel boilers across all plants within the next two years.
What about insights into carbon footprints? How are you doing?
I am unable to provide specific figures, but currently, we are earning a significant income through marketing carbon credits related to pet bottles, biofuel, and other sustainability initiatives. Our department is dedicated to promoting these initiatives, resulting in billions of dollars in revenue for us.
Any expansion plans you’re having?
Our focus is on significant expansion plans aimed at achieving a target of reaching 10,000 CR by 2030. We have robust capex strategies in place for acquisitions and expanding our current facilities. Additionally, we are expanding our presence beyond Rajasthan, where we have operated for six decades, with ventures into states like Uttar Pradesh and the upcoming establishment in Jammu and Kashmir within the next 12 months. Moreover, we are actively engaged in projects in various other states. This expansion strategy underscores our commitment to growth and diversification into new geographical markets.
Now a lot of startups are coming into the industry. What is your take/advice on this?
When advising potential startups, my recommendation is to not venture into a business solely for the sake of starting up, especially in overcrowded markets. Instead, focus on offering something innovative or with value addition to stand out. Before diving into a new startup, invest time in thorough research and strategic planning to ensure a competitive edge. Consider exploring opportunities in technical textiles or incorporating innovations like AI and automation to differentiate your offerings. Position your product intelligently, invest in cutting-edge technology, and allow a realistic timeframe of three years for market positioning. Avoid entering saturated commodity segments where price competition is fierce, and aim for long-term sustainability and growth over a 15 to 20-year horizon in spinning industries. It’s essential to strategize carefully, embrace innovation, and plan for sustainable growth in the competitive startup landscape.
Anything new you want to add to this interview? What do you feel about Bharat Tex?
Based on my observations after spending two days here, it’s clear that the response to the Bharat Tex event has exceeded expectations. Previously, there were uncertainties during the road shows. However, I believe Bharat Tex has been a grand success now. It’s crucial to capitalise on this success by leveraging the networking opportunities available to connect with the right people along the value chain. Developing relationships here can significantly benefit your business growth. With participants from all over the world and India, there is ample opportunity at Bharat Tex to expand your business. It’s essential to seize this opportunity to monetize it; otherwise, missing out on such potential would be detrimental.
Do you think this kind of event should happen regularly?
The ongoing discussion over the past day has centred around the prospect of an annual event that holds the potential to greatly benefit the Indian textile industry. This initiative has my full support, as it could serve as a significant catalyst for the growth of the sector. Looking ahead, there are promising developments on the horizon for India, with a series of positive steps being taken at the right time. While it is true that a similar opportunity was missed about 8 or 9 years ago during China’s shift away from labour-intensive textile production, it is reassuring that the necessary actions are now being taken. We have a chance to capitalise on this situation and make meaningful progress in the industry.
