RSWM is foraying into knitted fabrics in line with demand trends. This decision is expected to contribute Rs 800 crores to its topline over the next two to three years. The Rs 3,000 crore company has earmarked Rs 200 crores for the foray and is currently investing Rs 80 crores in plant and machinery in its existing facility. Demand for woven fabrics has dwindled while there is a surge in demand for knitted fabrics from both domestic and international brands. The knitted fabric plant will become operational in April 2022 and will add to Rs 275 crores to the topline in a year with a 400 ton plant capacity but is expected to scale up to Rs 800 crores after the capacity gets augmented to 1000 tons. Over the next two or three years investments will be another Rs 500 crores in new, upgradation and debottlenecking projects spread over various plants.
RSWM, a group company of LNJ Bhilwara, is one of the largest makers and exporters of synthetic and blended spun yarns from India. RSWM is also exploring an opportunity into garmenting fabrication franchising as international brands are now keen on finished garments rather than buying yarns. The company will offer soft bridge loans to set up or expand with buyback arrangements.