Indian textile firm RSWM, a major yarn supplier for the domestic and international market, is diversifying into the knitted fabric sector with the construction of a new circular knitting plant.
The company, which is also exploring an investment in dyeing and finishing equipment, says it will invest an initial Rs 200 cr ($26 mn) in the facility, which is expected to have an initial capacity of around 400 tonnes but this is expected to at least double over the next few years.
Announcing the new investment, Brij Mohan Sharma, joining Managing Director, RSWM, told that the company had recently hived off its Mayur woven fabric brand and will build the new knitted fabric plant at the same site. “Demand for woven fabric has dwindled while there is a surge in knitted fabric from both domestic and international brands,” he said. “We have earmarked Rs 200 cr for the segment and are currently investing Rs 80 cr in plant and machinery in our existing facility.”
He continued: ”The knitted fabric plant will become operational in April 2022 and will add to Rs 275 cr to our top line in a year with 400 tonne plant capacity but sales will scale up to Rs 800 cr after the capacity gets augmented to 1,000 tonnes,” he said.
Sharma also noted that the company was considering moving into garment manufacturing at some state in the future. “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,” he said.
