Rajasthan Spinning in readymade push

Rajasthan Spinning and Weaving Mills Ltd (RSWML), a Rs 500 crore flagship company of the LNJ Bhilwara group, plans to enter into the high value readymade garment (RMG) segment.

"We are planning to enter the readymade segment with our Mayur brand. Although plans are not yet finalised, we expect to be in the RMG market by next year," said Riju Jhunjhunwala, joint managing director, RSWML. The company plans to outsource manufacturing from other companies.

RSWML is the largest producer of polyester viscose (PV) in the country. It produces over 5000 tonne of PV per month and over one lakh metres of fabric per month.

It has an installed capacity of 1,31,376 spindles and 69 looms in four manufacturing units in Rajasthan. The company is the market leader in blended yarns, accounting for around 12 per cent of the country's market share.

In September 2003, the company acquired the Rishabdev unit of HEG, another flagship company of LNJ Bhilwara Group. The company reported a turn over of Rs 483 crore in the financial year 2002-2003.

It has already exceeded that figure in the first nine months of the current fiscal year, with a turnover of Rs 490 crore. "We plan to close the current financial year with turnover around Rs 650 crore," said Jhunjhunwala.

The company has targeted a turnover of Rs 800 crore for the next financial year and hopes to reach a turnover of Rs 1,200 crore in the next five years. The company plans to capitalise on exports, with the dismantling of the quota system in 2005.

At present, exports contribute around 40 per cent of the company's overall turnover. RSWML plans to increase the contribution of exports to around 50 per cent. The company plans to invest Rs 150 crore to strengthen its spinning and weaving capacity.