RSWM is one of India’s largest manufacturers and exporters of synthetic and blended spun yarns. The company’s products are marketed to marquee textile players in India and worldwide. RSWM also manufactures denim fabric and are recognised and respected by discerning members in this space for its product quality. Clients include large domestic brands and leading global names.
Expansion and Modernization
In 2022, RSWM planned a series of investments and capacity expansion plans including setting up of 19,488 Spindles of combed spinning of Cotton Yarn at a capital outlay of Rs. 78.35 Crores, setting up of 30,000 Spindles of Mélange yarn at an investment of Rs. 157.12 Crores and the setting up of Knitted fabric facility at Mordi at a capital outlay of Rs. 89 Crores in the first phase. RSWM has successfully executed all the projects and invested an additional Rs. 77.84 Crores capital expenditure on Modernisation and Balancing Equipment’s across all locations during FY22-23.
RSWM has further invested in spinning capacity by setting up 51,072 Spindles of Compact Cotton Yarn at an outlay of Rs. 315.00 Crores. This project was recently commissioned and is expected to boost up the turnover and profitability of the Company significantly in the coming years.
As a first step in strengthening its foundation, RSWM has built capacities in its existing product verticals to bolster growth in the immediate future. This move will enhance our cash flows and allow us to take up more prominent and stimulating projects as we move forward. RSWM has added a capacity of 7 lakh meters per month to its denim fabric capabilities. It will allow the company to increase wallet share with existing clients alongside the addition of global names to our enviable client list.
Mr. Riju Jhunjhunwala Chairman & Managing Director and CEO, shared his thoughts on the company’s performance, challenges and future investments and growth plans. He said : “We will focus on long-term growth, the ultimate measure to generate value. To achieve this, we will strengthen our competitive advantages, be disciplined in capital allocation, and stay diligent in our pursuit of efficiencies.”
Amidst all the negative euphoria, there were two essential positives. One, our effort to foster relations with customers — existing and potential – was particularly heartening. We went above and beyond to connect and engage with them. It is these relationships that, sooner than later, would yield desired returns.
Two, in the face of a hostile business environment, we sustained our planned investments in both business verticals. We invested about Rs. 410 crore in FY23. As the winds of change usher in positive demand trends, we will be ready to capitalise on growth opportunities with enhanced capacities and superior capabilities. For the textile sector, I expect that the structural shift will gain momentum over the next 12-18 months. When that happens, it will proliferate growth opportunities for the Indian textile sector.
Aligned with this belief, we are bracing ourselves for the big leap. We have drawn a roadmap for the Company titled Vision 2030 which projects our strategy beyond 2024.
We have listed the projects to be implemented and bucketed them for product, location, and timeframe. We will be increasing yarn capacity with a special focus on value-added yarns. These could be a combination of brownfield and greenfield projects which will unfold as we finalise the details of the project blueprint.
We are debating scaling the value chain from fabrics to garments for our denim division, which would positively impact our profitability. Further, we are also contemplating a considerable increase in our knitting capacity over the medium term. We have decided to revamp our R&D facility to a world-class facility that inspires creativity and product development. Also, we have ideated on the sectors, product lines, and products to be developed over this period. We have strategised to increase the deployment of cutting-edge IT solutions that will streamline our processes, facilitate faster and knowledge-backed decision-making and enhance the overall quality of our business. For this, we will make significant investments in making our IT infrastructure more robust and reliable.
We realise that commitments to causes like climate change and sustainability have become pivotal factors for our long-term success. We will intensify our investments in sustainability strategies and technologies to reduce our carbon footprint. The idea is to see a multi-fold growth in the Company’s topline by the end of our ambitious plan, accompanied by a healthy rise in profits and profitability. We will focus on long-term growth, the ultimate measure to generate value.
To achieve this, we will strengthen our competitive advantages, be disciplined in capital allocation, and stay diligent in our pursuit of efficiencies. My focus will be hooked on enhancing the quality of our business. It means all aspects of our business should be of high quality, whether related to product, service, or any interaction with stakeholders.
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“At RSWM, we are at the starting line (FY24) of a marathon that will extend over the next 5-6 years. We are readying ourselves for an exhilarating future comprising new products, capacities, and capabilities. We have an ambitious set target that will inspire the team to progress with zeal and energy. We look forward to a very exciting and promising tomorrow. One that holds light to the upliftment of the organisation to a completely new growth orbit.”
– Riju Jhunjhunwala, Chairman & Managing Director and CEO