RSWM Ltd., India’s leading textile giant and a group company of the LNJ Bhilwara, is focusing on knitted fabric segment in line with the demand trend, which will contribute Rs. 800 crore to its topline over the next two to three years.
The Rs. 3,000 crore company is also exploring opportunity into garmenting manufacturing.
The company has earmarked Rs. 200 crore for the foray and is implementing the first phase of the 400 tonne capacity project. The company hived off woven fabric brand Mayur and was in process of using the same land and building to install the knitted fabric plant at a cost of Rs. 80 crore in Phase I.
Brij Mohan Sharma, Joint MD, RSWM told news agency PTI, “Demand for woven fabric has dwindled while there is a surge in knitted fabric from both domestic and international brands. We have earmarked Rs. 200 crore for the segment and are currently investing Rs. 80 crore in plant and machinery in our existing facility.”
He further added that the knitted fabric plant will become operational in April 2022 and will add to Rs. 275 crore to our top line in a year with 400 tonne plant capacity, but sales will scale up to Rs. 800 crore after the capacity gets augmented to 1,000 tonnes.
While, the total capex for the current fiscal will be around Rs. 250 crore, over the next 2-3 years, investments will be another Rs. 500 crore in new, up-gradation and debottlenecking projects spread over various plants.
On the company’s initiative regarding garmenting, he said that RSWM is interested in garmenting, and will offer soft bridge loans to set up or expand with buyback arrangements.
He said, amidst uncertainties, the growth and demand momentum will stay at least for the next two years.
Notably, the company reported Rs. 44.75 crore in the quarter ended September 2021 as against net loss of Rs. 15 crore during the same period of last year.
