A Ramco Group company, Rajapalayam Mills plans to expand its fabric division’s capacity with an investment of Rs 400 crore. A leading manufacturer of cotton yarn and fabrics, Rajapalayam Mills has been producing a special value-added fabric from its jacquard looms. It now plans to add 166 new looms and set up an unit with a fabric processing capacity of 50,000 meter at Rajapalayam. It also plans to install a 110 KVA/11 KVA own substation inside its Rajapalayam premises to strengthen its electricity infrastructure.
Meanwhile, the fabric unit currently operates at the capacity of 146 looms. In FY22, it has produced 79 lakh meters of fabric as compared to 39 lakhs meters. It sold 91 lakhs meters of fabrics as against 41 lakh meters in FY21, registering a growth of 122 per cent. The total revenue generated by the fabric unit for FY22 was Rs 122 crore while exports stood at Rs 31 crore.
In FY22, Rajapalayam Mills generated revenues worth Rs 705 crorre against Rs 429 crore generated in FY21. Its sale of yarn grew to Rs 550 crore in FY22 as compared to Rs 363 crore in FY21. For the first quarter of this fiscal, total revenue grew to Rs 204 crore against Rs 134 crore in the year-ago quarter, while profit after tax rose to Rs 18 crore compared to Rs 5 crore.