RSWM Ltd, a manufacturer and exporter of synthetic and blended spun yarns, will invest Rs 330 crore in capital expenditure (capex) over the current financial year, to continue its growth trajectory and stronger financial performance.
The investment allocation will support the expansion of the denim fabric manufacturing capacity, cotton melange yarn manufacturing capacity and modernisation across all units, the flagship company of the LNJ Bhilwara Group said in a statement.
RSWM Chairman and Managing Director Riju Jhunjhunwala said the financial year 2020-21 was a year full of learnings and challenges both in terms of business and battling the pandemic.
However, it was also a satisfying year for the company as it has made structural changes that were critical for a sharper focus of business growth.
”Further, an allocation of Rs 330 crore is done for continued growth trajectory and stronger financial performance.
”The investment allocation will support expansion of the denim fabric manufacturing capacity, cotton melange yarn manufacturing capacity and modernisation and balancing equipment across all units,” said Jhunjhunwala.
The company has returned into profitability after delivering a profit after tax (PAT) of Rs 82 crore for in the first half (April-September) of the current financial year.
Despite the lockdown-induced restrictions in many parts of the country during the second wave of COVID-19, RSWM has registered a turnover of Rs 1,695 crore in the first half of FY22 as against Rs 769 crore in the corresponding period of FY21, he added.
On the outlook, the company said it is looking forward to continued robust business performance in the third quarter of 2021-22, as consumer sentiments and market confidence improved due to increasing vaccination.
”Moreover, increased penetration of organised retail, festive celebrations, favourable demographics and rising income level is expected to drive demand of textiles after recording a sharp increase in online apparel buying during the COVID-19 lockdowns.
”With this, the pandemic has also led to an increased demand for technical textiles,” it said.
RSWM produces and supplies yarns to some of the most renowned brands in over 78 countries. It is one of the largest manufacturers and exporters of synthetic and blended spun yarns from India.
The company is part of the USD 967-million LNJ Bhilwara Group, which had started in 1960 with a textile mill in Bhilwara, Rajasthan.
It has now diversified in textiles, graphite electrodes, power generation, IT-enabled services, power engineering consultancy services, energy storage solutions, and skill development.
