RSWM is investing close to Rs 350 crores across four plants, covering its prime verticals of denim and yarns. Around Rs 300 crores of the proposed investments are being made this fiscal and 80 per cent of it will be financed through bank loans. The remaining is via internal accrual. The capex will be fully operational by fiscal year 2023. The investments are expected to have a positive impact on the topline. Order books are to the tune of Rs 250 crores a month, going by the current run rates, for the months beginning October to January. This means RSWM will be using up its full capacity for these months.
RSWM is one of India’s largest manufacturers and exporters of synthetic and blended spun yarn. RSWM’s capacity at present is 300 tons a month. Plans are afoot to increase it to 1000 tons over the next 18 to 24 months keeping in mind the rising demand for athleisure offerings. The segment has seen a nearly 30 per cent growth with branded apparel players expanding their portfolio in categories like track pants, active wear and so on. Nearly 30 per cent of RSWM’s total sales volume comes from exports across 78-odd nations.