Under the visionary leadership of Mr. Riju Jhunjhunwala, RSWM has embarked on a transformative journey, significantly expanding its operations and capabilities. The company’s strategic foray into knit manufacturing and the recent acquisition of Ginni Filaments’ spinning, knitting, and processing business underscore its commitment to growth and innovation. Additionally, RSWM’s substantial investments in plant modernization initiatives are poised to enhance operational efficiencies and bolster its competitive edge in the textile industry. These strategic moves are set to yield promising results for RSWM, positioning it for robust business growth in the foreseeable future.
RSWM clocked net sales of ₹4,057 Cr in FY24. Currently the company has 12 manufacturing plants located across Rajasthan with 6.25 lakh spindles, 172 looms, and 95 circular and flat knitting machines produce high-quality textile products, ensuring the efficient production and timely delivery of products across the globe. RSWM Ltd. annually produces 1,21,000 MT Greige Yarn, 24,000 MT Melange yarn, 32,000 MT Dyed yarn, 32 M Meters Denim Fabric, 9000+ MT Knits Fabric, 43,000 MT Green Fibre, employing over 10,000 skilled workers across its manufacturing facilities.
Mr. Riju Jhunjhunwala, CMD & CEO of RSWM Limited said, “In the dynamic landscape of the cotton sector, challenges like initial stockpiling and potential shifts in farmer behavior pose hurdles in FY24. However, our analysis indicates resilience in these challenges, with stable consumption and favorable pricing dynamics as pillars of strength. In the quarter, RSWM Limited’s completed acquisition of Spinning, Knitting, and Processing Undertakings at Chhata Unit, Mathura from Ginni Filaments Limited marks a significant step in refining our business model”.
Knitting Business Foray
RSWM ventured into the circular knitting fabrics market with an initial investment of ₹80 crores. The company’s new venture, LNJ Knits, offers a wide range of innovative and high-quality knitted fabrics such as Single Jersey, Interlock, Rib, Fleece, and more. These fabrics are designed to meet modern demands for comfort, weightlessness, and wrinkle resistance. With a manufacturing capacity of 4,800 metric tons per annum (MTPA) at its Banswara Plant in Rajasthan, and an additional 4,300 MTPA through acquisition, RSWM aims to capitalize on the $206 billion global knits market, where India’s current market share is only 4%.
RSWM specializes in Synthetic, Blended, Mélange, Cotton, and Specialty value-added yarns, as well as Denim fabric, Knitted fabric, and Green Polyester Fibres. This new venture into circular knitting fabrics not only expands RSWM’s product offerings but also enhances its manufacturing capabilities and market presence. By leveraging its robust infrastructure and innovative approach, RSWM is poised to capture a larger share of the global knits market, reinforcing its leadership in the textile industry.
Ginni Filaments Acquisition
RSWM Limited has achieved a significant milestone by acquiring the Spinning, Knitting, and Processing Undertaking from Ginni Filament Limited at Chhata in Mathura, UP. This acquisition is set to enhance RSWM’s production capacity substantially, with yarn output expected to increase by 55 tonnes per day, including combed, carded, polyester-cotton (P/C), and open-ended yarn production. The acquisition brings a considerable capacity boost to RSWM, incorporating 80,016 spindles, 720 rotors, and the ability to produce 12 tonnes of knitted fabric per day, along with processing capabilities. This expansion not only enlarges RSWM’s footprint in the spinning and fabric industry but also strengthens its position by leveraging synergies that are anticipated to boost EBITDA and ensure financial stability, thereby promising improved earnings per share (EPS) for the company.
The strategic acquisition is expected to generate substantial operational efficiencies and cost savings for RSWM Limited. By integrating modern spinning assets, the company aims to enhance its production capacity and scale, driving innovation and expertise in the industry. The acquisition will bolster RSWM’s sustainable sales, employee base, factory count, and overall market presence, reinforcing its leadership position. With the added production capabilities and the expected financial benefits, RSWM is well-positioned to achieve significant growth and maintain its competitive edge in the textile sector.
Mr. B. M. Sharma, JMD, RSWM said, “As we ventured into Q4 of the FY24, we found ourselves amidst a wave of optimism within the consumer landscape, buoyed by the remarkable resilience observed during the marriage season. This positive sentiment is supported by several key factors, including competitive manufacturing costs, a well-organized retail landscape, and the burgeoning presence of e-commerce platforms. Furthermore, the sector benefits from the promising development propelled by a robust domestic market, the positive trajectory of per capita income, strategic initiatives such as the China+1 strategy and vendor consolidation by major brands, all against the backdrop of a favourable currency environment.
This momentum underscores our proactive approach to growth in a dynamic market. We anticipate positive growth trajectories and remain committed to delivering value and sustainable returns for our shareholders through efficient working capital management and seizing emerging opportunities.”
Commitment to Sustainability
RSWM Ltd. demonstrates a profound commitment to environmental sustainability through various impactful initiatives. In FY24 alone, the company recycled 55,250 MT of PET plastic bottles and 59 MT of waste fabric, saving 640 KL of water per day and utilizing 32.36 MW of renewable energy. These efforts significantly reduce waste and conserve precious resources, showcasing RSWM’s dedication to sustainable business practices. Recognizing that plastics constitute about 20% of global waste, RSWM’s recycling initiatives are part of a broader strategy to promote a greener and cleaner world.
RSWM Ltd. is also a strong advocate of Mission LiFE, a transformative initiative aimed at fostering a greener and cleaner India. By aligning its efforts with this mission, RSWM strives to safeguard the planet for future generations. The company believes that sustainability begins with responsible procurement, actively purchasing sustainable products to contribute to environmental preservation. RSWM’s commitment to sustainable procurement sets a benchmark in the industry, inspiring others to join in protecting our planet’s resources.
RSWM is strategically focusing on expanding its Knitting Unit’s output this year while considering market dynamics for gradual capacity expansions. The company has already made significant improvements in its denim division’s product quality and operations and plans further enhancements, driven by increasing popularity for denim products. Moreover, RSWM is exploring entry into the garments segment. The company also emphasizes high-value specialty yarns such as dyed and melange yarns. In terms of investments, RSWM has committed approximately Rs. 410 crores to expand its denim, cotton melange yarn, and knits business, alongside modernizing equipment across all its units. RSWM closely monitors the RoDTEP Scheme, which aims to boost India’s export competitiveness globally, with customized packages sanctioned for its denim, cotton melange, spinning, and knits businesses, potentially transforming the entire export value chain.