RSWM Ltd., part of the LNJ Bhilwara Group, produces and supplies high-quality yarns to some of the most renowned brands in over 78 countries. For the last 57 years, the company is producing high-quality cotton, melange, synthetic and novelty yarns, along with suiting and denim fabric that’s 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 esteemed 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. The Group has completed 50 glorious years and today that single textile mill of 1961 has expanded into several plants; the Group has strategically diversified and stands proud as a multi-products and services conglomerate in textiles, graphite electrodes, power generation, IT-enabled services, power engineering consultancy services, Energy storage solutions & Skill development.
LNJ Bhilwara Group is a well-diversified conglomerate and stands as one of the largest setups on the corporate horizon in India. The USD 967 million LNJ Bhilwara Group, commands 20 production units, is strategically located, markets internationally, and 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 Ltd.
The Group’s export earnings comprise 50% of its turnover. It has been actively seeking growth and profitability by investing in a variety of systematically identified businesses making it a multi-product conglomerate with interests in a range of industries such as textiles, graphite electrodes, power generation, power engineering consultancy services, IT-enabled services, Energy storage solutions & Skill development.
RSWM also announced its business plans, including a few critical structural changes, manufacturing capacity building and allocation of INR 330 crore to continue growth trajectory and stronger financial performance. The investment allocation will support expansion of Denim Fabric manufacturing capacity, Cotton Melange Yarn manufacturing capacity and Modernisation & Balancing equipments across all units.
Additionally, the company will be setting up 30,000 spindles of Mélange yarn at its largest unit in Kharigram (Rajasthan) and also installating 20,000 spindles for combed cotton at the yarn facility in Mordi (Banswara). This is apart from the modernization and balancing equipment across all the locations in FY22.
Denim Business
The denim business expects to perform well given the global industry forecast. In addition, the company expects new opportunity creation in the denim market owing to the demand for recycled denim. The addition of important global brands to RSWM’s clients’ portfolio lends growth optimism in the coming years. The company also reinforces its sustainability efforts to protect the environment by recycling waste and converting it into wearables.
Sufficient cash generation has put the company in very comfortable position in terms of liquidity. The investment in Denims allocated for building facility of 8.4 million metres of denim capacity for sheet dyeing and finishing capacity at Mordi.
Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director of RSWM Ltd. said, “FY21 was full of learnings and challenges both in terms of business and battling the pandemic which catalyst for change. RSWM stood among the companies that envisioned the change and showcased agility to prepare to continue delivering better financial numbers in a highly unpredictable ecosystem. Also, FY21 was a very satisfying year for us because we made structural changes that we believe were critical for a sharper focus of business growth. As we step into a new period of growth with a sharper focus on business growth, our consolidation efforts, new investment allocation and focus on core business capabilities building remains critical for sustainable business growth. With stronger business performance in H1 FY22, we are confident that the company would continue to build on the momentum while executing our blueprint with disciplined determination.”