RSWM to make a foray into knitting; to infuse Rs 700 cr in 2-3 years

RSWM Ltd, a LNJ Bhilwara group company, is entering knitting in line with the demand trend, which will contribute to its turnover of Rs 800 crore over the next two to three years, a high responsible for the company.

RSWM Ltd was also exploring clothing manufacturing franchise opportunities as international brands are now interested in finished clothing rather than buying yarns.

The company Rs 3,000 crore has earmarked Rs 200 crore for the incursion and is implementing the first phase of the 400 ton capacity project. The company split off from the woven fabric brand Mayur and was in the process of using the same land and building to set up the knitwear factory at a cost of Rs 80 crore in phase I.

“The demand for woven fabrics has decreased while there is an increase in knitted fabrics from national and international brands. We have allocated Rs 200 crore to the segment and are currently investing Rs 80 crore in plant and machinery in our existing facilities, ” RSWM Deputy General Manager Brij Mohan Sharma said. PTI.

” The knitwear factory will become operational in April 2022 and will add Rs 275 crore to our turnover in one year with a capacity of 400 tons, but sales will increase to Rs 800 crore after the capacity is increased to 1000 tons, ” he said.

While the total capital expenditure for the current fiscal year will be around Rs 250 crore and over the next 2-3 years the investments will be an additional Rs 500 crore in new upgrade and debottlenecking projects spread over various factories, he said.

Sharma said they are strongly considering going into clothing, but not directly.

” We supply yarn to all the major global brands, but now they demand finished garments. We are interested but through manufacturers or franchisees, as the clothing industry has only thrived on a small scale. We will offer bridging loans on favorable terms to set up or develop repurchase agreements, ”said Sharma.

Speaking on the outlook, the company said amid uncertainties that growth and demand dynamics would remain at least for the next two years.

Amid the COVID-19 pandemic, the company said Rs 44.75 crore in the quarter ended September 2021 compared to a net loss of Rs 15 crore in the previous quarter ended September 2020 and was targeting the one of the best performances of the decade.

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Posted on: Sunday December 05, 2021 4:20 PM IST

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