RSWM investing in new capacity

Strong business growth is triggering the company’s ambitious plans to not only enhance production but also explore new markets across the globe

Riju Jhunjhunwala, Chairman and Managing Director, RSWM Ltd.

RSWM Limited, part of the LNJ Bhilwara Group, is planning to invest Rs 315 crore to expand its spinning capacity in the Banswara unit by an additional 51,000 spindles. The company has recently invested Rs 410 crore for the expansion of its manufacturing capacity for denim fabric, cotton melange yarn and other modernisation and balancing equipments across all units. RSWM produces and supplies high-quality yarns to some of the most renowned brands in over 78 countries. For the last 57 years, the company has been producing high-quality cotton, melange, synthetic and novelty yarns as well as denim fabric that are used to drape populations around the world.

RSWM is one of the largest manufacturers and exporters of synthetic and blended spun yarns from India. The company has clocked its highest-ever turnover of Rs 3,850 crore, an increase of 63 per cent over the previous year led by volume and value growth. Export sales increased 87 per cent in FY22 to Rs 1,419 crore. Commenting on the results, Riju Jhunjhunwala, Chairman and Managing Director, RSWM Ltd., said: “In FY22, RSWM has demonstrated solid execution and showcased the inherent strengths of its business model. We have achieved substantial scale-up in revenues, margin expansion and profit growth to deliver value in a tough operating environment.”

“The environment was marked by continuing impact of the global pandemic, geo-political upheavals, inflationary trends and supply chain bottlenecks. We expect the situation to improve in the coming quarters and remain focused on execution and agility to gain from market opportunities. We at RSWM are now ready to take a leap to transform our business to the next level. We remain committed to future growth plans with a clear focus on enhancing our product portfolio, geographical reach and improving efficiencies of higher return on investments. We now look into the future with excitement and purpose,” he added.

“We are confident about our ability to drive continuing value for stakeholders by delivering on the strategic business plan,” he further stated. The esteemed journey of LNJ Bhilwara Group started in 1960 when the group’s founder, L N Jhunjhunwala, established a textile mill in Bhilwara, Rajasthan. The group has completed 50 glorious years and today that single textile mill of 1961 has expanded into several plants. The group’s export earnings comprise 50 per cent of its turnover and strategically diversified it stands proud as a multi-product and services conglomerate in textiles and graphite electrodes.

The company is also engaged in other sectors such as power generation, IT-enabled services, power engineering and consultancy services, and energy storage solutions and skill development. The USD 967 million LNJ Bhilwara Group commands 20 production units that are strategically located and markets its products internationally. It employs over 25,000 employees globally. HEG Ltd. is the group’s flagship company and has the world’s largest single-location graphite electrode manufacturing plant. The group also owns two hydroelectric projects under Bhilwara Energy Limited.