Targets $1 billion turnover by 2016
Rajasthan Spinning & Weaving Mills Ltd., now known as RSWM Ltd., one of India’s oldest textile companies, aims to turn into a $1 billion conglomerate by 2016. The company has announced an investment of Rs. 1,500 crores for capacity expansion.
Starting as a small textile unit in the then tiny township of Bhilwara five decades ago, the LNJ Bhilwara Group is today counted as amongst the leading Indian business conglomerates. RSWM Ltd. which was set up in 1961 in Bhilwara today stands tall as a Rs. 1,974-crore company.
The Chairman of RSWM Ltd., Mr. Ravi Jhunjhunwala, said: “We are attractively placed to achieve this target. We enjoy a 35% share of the polyester yarn segment and a dominant position in yarn exports, including special high-value yarns. We also expect to add sophisticated spinning equipment that will take our spindle capacity to 700,000, retaining our position as India’s second-largest spinning company. We shall enhance our denim installed capacity from 14 million metres per annum to about 18 million metres and expect to commission a spinning facility dedicated to denim manufacture strengthening our integration and profitability. We believe that this blueprint will enable the company’s to graduate into a truly global enterprise over the foreseeable future.”
Mr. J.C. Laddha, Executive Director, disclosed that in the last one year the company has commercialised 11 innovative products, including yarn from special materials like bamboo and soya. “Our research team is working relentlessly, and this year we hope to release five unique yarns which shall help RSWM create a special niche in the world of textiles.”
Other than among country’s largest melange yarn manufacturers, RSWM’s product basket comprises specialty, functional, technical and eco-friendly yarn using nano-technology and biotechnological fibers.
The company will continue to strengthen, as its newly-commissioned capacities will generate sizeable volumes, and the new products launched in 2010-11 are likely to find new markets. The launch of natural stretch yarn is expected to accelerate the offtake of value-added yarns, leveraging a strategic alliance with DuPont to exclusively produce natural stretch yarns under the DuPont Sorona brand. Besides, the company expects to add 70,000 spindles in 2011-12 aimed at reaching 700,000 spindles by 2016.
RSWM is a leading player in the yarn and fabric businesses, with its operations across eight locations in Rajasthan. Periodic investments in cutting-edge technology and skills enabled it to manufacture quality products of international standard.
Yarn
The company is a dominant player in the Indian yarn space with a wide product range, comprising grey, dyed and mélange yarns. Its focus is on developing unique yarns that help expand the market size and share and on delivering high quality yarn to discerning weavers.
The company possesses a comprehensive product mix comprising an extensive fabric range for classic formal and semi-formal wear. This includes unique blends (polyester viscose in different yarn counts), shades and finishes. The fabric is sold in the domestic market under the value-for-money ‘Mayur’ brand and LNJ Denim.
RSWM commenced operations at Bhilwara in Rajasthan in 1961 with an installed capacity of 12,500 spindles. Currently the division boasts of five state-of-the-art manufacturing facilities with a cumulative 336,608 spindles. The company facilities are ISO 9001:2000 and ISO 14001-certified.
In 2012-11, production grew 9.48 per cent from 85,784 MT in 2009-10 to 93,913 MT. The company expanded capacity from 2,98,208 spindles as on March 31, 2010, to 3,36,608 spindles as on March 31, 2011. In 2011-12, the company plans to add 70, 000 spindles to its existing capacity.
RSWM’s yarn division is the flagship company contributing over 85 per cent to revenues in 2010-11. This business is credited with laying the foundation for lateral growth of the LNJ Bhilwara Group.
The company possesses one of the widest yarn ranges of fibre blends, counts and shades; these are broadly classified into three categories – grey, dyed and melange yarn. Processed fibres include polyester, viscose, acrylic, cotton, wool, rayon, nylon, silk, polyamide and linen. A range of speciality products are also made out of unorthodox fibres (soya protein, milk protein, bamboo and bamboo charcoal) and branded fibres (Tencel, Greenplus and Protex). Many of these were developed for specific applications (natural stretch, flame retardant and for industrial use).
Over 25 per cent of the output is marketed to brand-enhancing Indian textile players, namely Raymonds, Siyaram, Welspun, Alok, Arviva, among others. The company’s footprint extends across 70 nations, with the US and the EU being key markets. More than 15 per cent of its product line is dedicated to green textiles, which counts global brands from the US, the EU and Latin America as regular customers.
RSWM drew a multi-pronged growth map for 2011-12. It expects to increase its yarn making capacity to 7,00,000 spindles by 2016, generating significant economies of scale and protecting margins. The company’s R&D team is working on a robust product basket to be launched in the current year. The marketing team entered global markets in 2010-11, translating into higher volumes.
Fabrics
In fabrics, production increased 16 per cent from 91.41 lakh metres in 2009-10 to 106.12 lakh metres. Fabric processing increased 3.78 per cent from 142.29 lakh metres to 147.67 lakh metres.
Mayur Suitings is a popular brand with a pan-India presence. It is manufactured by RSWM at its vertically-integrated state-of-the-art plant at Mordi (Rajasthan), using sophisticated equipment from Japan, Germany, Switzerland and Italy.
The company has a manufacturing capacity of 9.3 million metres a year of fabric with an annual fabric processing capacity of 21 million metres. Stringent quality parameters institutionalised at its TQM-implemented plant enabled adherence to global standards. The unit is ISO 9001:2000-accredited, and operations are managed by a team of a more than 1,100 members with an average 10-year experience in the business.
A comprehensive product mix comprises fabrics for formal and semiformal wear, covering unique blends of polyester and viscose in different yarn counts, shades and finishes. A robust distribution network comprises delcredere agents and wholesale dealers who service more than 2,000 retailers who, in turn, cater to the trend-conscious consumer segments across India.
Sizeable quantities of fabric are exported to discerning, quality conscious customers in the Middle East, Mediterranean countries, Europe, the Far East and the US.
Denim
Following the denim business turnaround in 2010-11, the company plans to focus on international customers and double the global share of this business to about 50 per cent of its overall revenues. RSWM added two globally-respected denim brands (Diesel and Zara), which are expected to generate sizeable business volumes from 2011-12 onwards. The company has developed two unique products for Levis Global, emerging as India’s only supplier.
Production grew 1.99 per cent from 122.99 lakh metres in 2009-10 to 125.44 lakh metres, largely owing to improved productivity.
The denim division commissioned operations (installed capacity 140 lakh metres per annum) with state-of-the-art facilities and certifications: Global Organic Textile Standards (GOTS), Global Recycle Standards, SA 8000, Organic Exchange (OE blended and/or OE 100), OEKO-TEX 100 and REACH.
Though a small player, the division has its rich expertise in value addition to customise fabric around diverse applications. Over 30 per cent of its massive product range of 3,000 variants comprised value-added products. The product range comprises denim out of denim (recycled denim), work wear like anti- bacterial hydrophobic, hydrophilic, anti-odour and fire-retardent, poly spectrum in 65 shades, organic cotton fabric, power stretch, plasma denim, rich blended denims of cotton with linen, cotton with Kashmir wool, cotton with hemp, cotton with viscose, and 100 per cent tencil, among others.
In addition to catering to domestic denim majors, the company enjoys an expansive global footprint across 30 nations. It also caters to ‘collections’ for the global fashion industry. Its international clients include Diesel, Marlboro, Levis, VF, GAP, C&A, Ann Taylor, Polo, Zara, H&M, Jack & Jones, Tommy Hilfiger, J. Crew, Mustang, Sand, LeconetHemant, Monsoon, United Colors of Benetton and GYMBOREE. To strengthen recall, the division participates in Indian and international exhibitions and trade fairs.
The company expects to double its ‘collections’ basket to four in the current year. It also plans a Rs. 150-crore brownfield expansion to be commissioned by the end of the current year to increase the annual manufacturing capacity of yarn by 900 tonnes and denim fabric by 40 lakh metres.
Research & development
“By responding to the rising global demand of new denim range and bringing in concerted R&D, we have achieved an impressive growth in last one fiscal year and going ahead, we see tremendous opportunities,” said Mr. Y.C. Gupta, Chief Executive and Business Head, LNJ Denim.
Research and development has been done by RSWM on functional textiles like bamboo, nylon, catonic, soyabean, silk, linen blended with synthetic & cotton fibres fancy twisted yarns, typical blends like acrylic / nylon, modal / acrylic, bamboo / linen, dyed spun yarns with acceptability in the market for high value-added products for apparels and furnishing sectors.
A lot of work is being done in the area of technical textiles, which includes introduction of new technical textile products – like fire-retardant, hygienic, anti-bacterial, anti-odour and eco-friendly items. The company is also working on development of fancy grey yarns using special material like filasia, sparkle and injection slub for knitting and dress materials.
The company is busy with on development of denim fabric using functional fibers like soya, linen and it’s blends, bamboo, hemp, natural stretch, tencel, cashmere and T400. It has developed the special denim products that are oil and water-repellent, anti-microbial, hydrophilic, antiodour and fire-retardant.