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The Textile Magazine
August 2012
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47
has declined sharply, generating higher disposable in-
comes. Close to 65 per cent of Indians of 20-60 years
are working, leading to higher disposable incomes and
lifestyle aspirations. Among the BRIC nations, India is
expected to remain the youngest with its working-age
population estimated to rise to 70 per cent of the total
population by 2030 – the largest in the world.
Wealth at the bottom: Rural income is increasing
significantly. Credible estimates suggest that a one per
cent increase in India’s rural income translates into $25
billion of buying power.
These factors are expected to drive demand for tex-
tiles and yarn in India.
Buoyancy in the man-made fiber space: The domes-
tic fibre consumption ratio in India is 41:59 between
man-made fibres and cotton, while it is almost 60:40 at
the global level. A growing paucity of agricultural land
will tilt the ratio more in line with the global average.
More importantly, the global ratio is expected to tilt in
favour of man-made fibres due to limited cotton avail-
ability and growing land shortage.
India’s growing focus on strengthening its food se-
curity (Union Budget 2012) is expected to result in fa-
vourable policies, making food crops more attractive
and reducing the land availability for cash crops.
Considering an average eight per cent GDP growth
in the current decade, domestic demand for man-made
fibres/filament yarns is estimated at 4.2 billion kg in
2014-15 and about 6.48 billion kg in 2019-20 (after
adjusting for likely exports and imports). This implies
capacity additions of about 1.8 billion kg (2014-15) and
4.6 billion kg (2019-20), which will require an invest-
ment of around $2 billion by 2014-15 and $5.1 billion
by 2019-20.
The game plan
At RSWM, we are investing in sophisticated capacity
creation. We are investing in fully-automated, state-of-
the-art units to house contemporary equipment, requir-
ing lesser land, people and utilities to produce quality,
niche products with global acceptance.
This has been reflected in our 51,840-spindle unit at
Kharigram, reinforcing our position as one of the largest
players in India’s spinning segment and 18,000 spindle
addition in our denim unit. We should commence opera-
tions by the end of the first quarter of 2012-13. Our Lak-
shya is 7,00,000 spindles by 2016, enabling us to capi-
talise on emerging opportunities in India and the world.
Our dual strategy of combining capacity and technol-
ogy will position us among leading global textile play-
ers.
the product portfolio offered to cus-
tomers.
Dyed yarns are produced at the
company’s Kharigram and Ringas
plants. These are relatively higher
value-added products and made ac-
cording to customer specifications
of blends, counts and shades.
Melange yarns are premium
products made from cotton and its
blends and are used in the produc-
tion of knitwear and hosiery. Today,
the company is one of the largest
manufacturers of mélange yarn in
the country with 44,016 spindles.
While this segment is still quantita-
tively small compared to the greige
and dyed yarn business of the com-
pany, it commands the highest value
addition in RSWM’s overall yarn
portfolio.
The fabric and denim business
segment comprises fabric manu-
facturing capacity, which consists
of the blended fabrics division with
fabric processing plant at Mordi
(Rajasthan) and the fully integrated
state-of-the-art denim plant from
spinning to value-added denim fab-
rics at the same location.
corporate