RSWM to foray into knitted fabric, to pump Rs 700 crore in 2-3 years
RSWM Ltd, a group company of the LNJ Bhilwara, is foraying into knitted fabric in line with the demand trend which will contribute Rs 800 crore to its topline over the next two to three years, a senior company official said on Sunday.
One of the largest makers and exporters of synthetic and blended spun yarns from India, RSWM Ltd was also exploring opportunity into garmenting fabrication franchising as international brands are now keen on finished garments rather than buying yarns.
The Rs 3,000 crore company has earmarked Rs 200 crore for the foray and is implementing the first phase of the 400 tonne capacity project. The company hived off woven fabric brand Mayur and was in process of using the same land and building to install the knitted fabric plant at a cost of Rs 80 crore in the phase I.
''Demand for woven fabric has dwindled while there is a surge in knitted fabric from both domestic and international brands. We have earmarked Rs 200 crore for the segment and are currently investing Rs 80 crore in plant and machinery in our existing facility,'' RSWM Joint MD Brij Mohan Sharma told PTI.
''The knitted fabric plant will become operational in April 2022 and will add to Rs 275 crore to our topline in a year with 400 tonne plant capacity but sales will scale up to Rs 800 crore after the capacity gets augmented to 1000 tonne,'' he said.
While, the total capex for the current fiscal will be around Rs 250 crore and over next 2-3 years investments will be another Rs 500 crore in new, upgradation and debottlenecking projects spread over various plants, he said.
Sharma said they are strongly exploring getting into garmenting but not directly.
''We supply yarn to all leading global brands, but now they are demanding finished garments. We are interested but through fabricators or franchisees as the garmenting business thrived only under small scale. We will offer soft bridge loans to set up or expand with buyback arrangements,'' Sharma said.
Speaking about outlook, the company said amid uncertainties the growth and demand momentum will stay at least for next two years.
Amid Covid pandemic, the company reported Rs 44.75 crore in the quarter ended September 2021 as against net loss of Rs 15 crore during the previous quarter ended September 2020 and was aiming for one of the best performance in a decade.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)