RSWM, an Indian textile conglomerate, will concentrate on the knitted fabric market

07 December 2021, Mumbai:

In line with the demand trend, RSWM Ltd., India's foremost textile behemoth and a group firm of the LNJ Bhilwara, is focusing on the knitted fabric market, which will contribute Rs. 800 crore to the company's top line over the next two to three years. The company, which has a market capitalization of Rs 3,000 crore, is also looking into clothing production. 

The company has set up Rs. 200 crores for the venture and is already working on the first phase of the 400-tonne project. The company had spun off the woven fabric brand Mayur and was in the midst of constructing a knitted fabric facility on the same site and building for Rs. 80 crores in Phase I.

"Demand for woven fabric has declined while there is a boom in knitted fabric from both domestic and foreign brands," Brij Mohan Sharma, Joint MD, RSWM, told news agency PTI. We've set aside Rs. 200 crores for the segment, and we're currently investing Rs. 80 crore in equipment and machinery at our current site." 

He went on to say that the knitted fabric plant will open in April 2022 and will contribute Rs. 275 crore to the company's top line in a year with a 400-tonne capacity, but that revenues will increase to Rs. 800 crore once the capacity is increased to 1,000 tonnes.

While overall spending for the current fiscal will be around Rs. 250 crore, investments in new, up-gradation, and debottlenecking projects will total another Rs. 500 crores over the next 2-3 years, divided across multiple factories. 

On the company's garments endeavor, he stated that RSWM is interested in the industry and will provide soft bridge loans to start or develop with repurchase arrangements. 

Despite the uncertainty, he believes that growth and demand will continue for at least the next two years. In the quarter ended September 2021, the company reported a net profit of Rs. 44.75 crore, compared to a net loss of Rs. 15 crores the previous year.

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