TQM remains major focus of manufacturing process
The journey of the LNJ Bhilwara Group started in 1960 when the group’s founder, Mr. L.N. Jhunjhunwala, established a textile mill in Bhilwara, Rajasthan, paving the way for the group’s unfaltering success. Over the past five-and-a-half decades, the group has strategically diversified into different areas to emerge a multi-product conglomerate.
RSWM, the flagship enterprise of the more than $1 billion LNJ Bhilwara Group, is known for its vertically integrated fibre-to-fabric business model. The company’s 10 operational facilities, equipped with state-of-art technology spread across Rajasthan and Tamil Nadu, are proximate to major cotton fields and customers.
Over the years, RSWM has established its reputation as a sectoral pioneer. It was among the first Indian textile companies to implement Total Quality Management (TQM) protocols as a part of the manufacturing process way back in 1997. All its facilities and processes are aligned with the international operational standards. As on March 31, 2017, the company has a marketing footprint spanning across 81 countries.
RSWM has operations across eight prime manufacturing facilities in Rajasthan and one each in Tamil Nadu and Puducherry. It commissioned India’s most sophisticated automated spinning unit SJ-11 at Kharigram, marketing quality yarns under the ‘Ultima’ and ‘EGDE’ brands.
Following the capacity expansion initiative undertaken in 2015, RSWM today has 5,04,704 spindles, among the largest in the country. The company increased its share of value-added products to account for 30% of its product mix and launched more than a hundred products during the year. Amazingly more than 70% of them found takers immediately.
RSWM is targeting Rs. 3,500 crores in terms of topline in the next three years. While organic growth has been a key driver, inorganic growth is also being looked at as a distinct possibility.
Talking about the key initiatives taken, Mr. Ravi Jhunjhunwala, Chairman, LNJ Bhilwara Group, says: “During FY2015-16, we had scaled capacities, added resources, recruited personnel and fine-tuned our product mix. We have taken this to the next level by introducing a new methodology of ‘5-to-25’. This approach entailed showing the client the yarn sample in five days and readying the actual yarn over the next 25 days. The operative philosophy was that the sooner we turnaround the ‘yarn to garment’ cycle, the happier will be the client. Further, we undertook a number of people-related initiatives like various training and development programs and functioning of centres under the skill development mission at Kharigram and Banswara, which also helped improve the people-related efficiency”.
Referring to the growth plans, Mr. Riju Jhunjhunwala, Managing Director, says: “While on one hand we will continue to consolidate our operations, we will also keep an eye out for relevant inorganic growth opportunities. Looking ahead we would like to achieve full capacity utilization in terms of achieving better realizations and higher operational efficiencies. We plan to automate a few other processes in FY2017-18 to enhance product quality and improve efficiencies. We also plan to manufacture more value-added products so as to increase our profitability”.
Yarn
Yarn constitutes the flagship division of RSWM, having started operations in 1961 with an installed capacity of 12,500 spindles. Today it is the largest contributor to the overall revenue mix of the company and boasts of eight state-of-art manufacturing facilities with a cumulative 4,08,368 spindles and 3,120 rotors.
Over the years the yarn division of RSWM has not just grown in stature but also in terms of product offering and clientele. Today, it is one of the most respected names in the Indian textile industry and is also one of India’s leading manufacturers of synthetic yarns, offering an unmatched range of products across fibre blends, counts and shades.
The company is closely associated with some of the biggest names in the Indian textile industry like Raymond Ltd., Siyaram Silk Mills Ltd., Welspun India Ltd., and Alok Industries Ltd., along with presence in more than 50 countries. Its product range serves the needs of the fashion, knitting, weaving, denim, hosiery, shirting and suiting segments. Nearly 1.58% of the yarn produced by the company is consumed in-house for the fabric division and 98.42% is marketed in the domestic and international markets.
Mélange yarns
The new business segment, yet the most profitable business segment of the company started its operation in 1994 with a production capacity of 414 tonnes of yarn each month. Today the product is being manufactured across three facilities with a sizeable production capacity.
Used in underwear, casualwear, sportswear, shirts, business suits, socks as well as bed linen, towels, decorative fabrics and other home fabric products, this high-value yarn is not just accepted by the Indian players but has also found acceptance in different countries, spread across the globe.
In spinning, RSWM will continue to focus on new product development across business verticals with the use of latest technology like Mosaic Slub Attachment and with different fiber combinations. The company is focused on technology upgradation by installing new blow room, carding machines, Pinters roving stop motion and spindle monitoring systems in order to improve quality and productivity.
Keeping in view the market demand, RSWM has installed sampling machines for loom warping, sizing and compacting to improve the lead time of delivery to customers. The company has renewed its focus on green energy with a solar energy plant of 1.80 MW installed at the Kanyakheri unit and another one of 1.50 MW under installation at Mandpam.
EDGE
RSWM’s EDGE was launched in FY2015-16 with an aim to cater to the changing demands of the consumers, as the yarn industry was flooded with commodity type products. It widened the yarn-dyed product basket and strengthened its presence in the key North Indian markets. This brand has come a long way in just one year as it offers customers a range of specialty and innovative yarn products.
EDGE has a product basket that includes products like thermolite/modal, linen/cotton, cotton/alpaca, modacrylic/cotton, coolmax/cotton, etc., to meet the ever-changing requirements of the protectivewear, active wear, knitwear, wovens, home furnishing and fashion industry. The revenue from EDGE accounted for 12% of the company’s sales volume in FY2016-17.
Fabrics
Established in 1973-74, the fabric division is a forward extension of the yarn manufacturing business of the company. However, over the years the segment has been able to establish a separate entity owing to its success in the domestic and international markets.
RSWM offers a wide range of products in this segment covering formal and semi-formal wear, coupled with unique blends of polyester and viscose in different shades and finishes. The company turns out the product at its vertically integrated state-of-art plant in Mordi (Rajasthan) and markets it under the brand name ‘Mayur Suitings’, which is quite well-known all over India.
A strong and dedicated design team, coupled with exclusive equipments for bulk sample yardage and design blankets, has helped the company emerge as a prominent player and undertake extensive product innovation. It has started commercial production and supply of linen, cotton linen, polyester, polynylon wool and quilt, thus further widening the product range.
The company also intends to foray into the technical textile segment with the launch of fire-retardant fabric and a slew of other technical textiles, including in-house development of newer and innovative kind of textiles.
Denim
Established in 2007, the globally renowned Denim Division of RSWM operates from its manufacturing facility in Mordi (Rajasthan) with an installed capacity of 25 million metres per annum.
With a wide variety of value-added products in the overall product mix, the company’s products are certified by some of the globally renowned quality confirming bodies like Control Union, BSI and the Shirley Institute, among others. The company is associated with some of the leaders in the global denim industry like Levi’s, H&M, Zara, Warner, Carrefour, New Yorker, Lules, Marlboro, Diesel, Jack n Jones, etc. Going forward, RSWM intends to focus all the more on the value-added segment and expects to introduce new products like 360 degree stretchable denim, vintage denim and shirting collection in FY2017-18.
Expansion and modernisation
RSWM had planned for a denim sheet dyeing project at a capital outlay of Rs. 42.75 crores. This project has been commissioned and accordingly the production capacity of denim fabric stands increased to 25 million meters from the earlier 17 million meters. The full benefits of this expansion will be reaped in the current financial year.
The company has also invested in debottlenecking and upgradation of equipments and facilities across various units. The first phase of this programme has been completed and the second phase of the technology upgradation and debottlenecking programme at a capital outlay of Rs. 48.76 crores has been initiated. It is scheduled to be completed during the current financial year.