Rajasthan Spinning to ramp up production

In an effort to acquire an enhanced global status in the post quota regime, the Rajasthan Spinning and Weaving Mills (RSWM), the flagship company of the LNJ Bhilwara Group, has chalked out plans to ramp up production of ready-to-wear apparel.

The company, which recorded sales of Rs 1,002 crore in 2005-06, is now concentrating on ready-to-wear apparel and denims. Earlier this year, RSWM's new garment unit "� LNJ Apparels "� commenced production of casual and formal trousers with an annual manufacturing capacity of 39 lakh pieces at Bangalore.

"At present, the Bangalore unit produces 3,000 garments per day for our foreign clients like Marks & Spencer and Haggar and a couple of domestic clients. In the next four months, we intend to scale up the production capacity to 13,000-14,000 garments per day. We will also hire 600-700 persons in the coming months for the Bangalore unit," RSWM joint managing director Riju Jhunjhunwala told Business Standard.

According to him, the market dynamics are driving the expansion of LNJ Apparels operating out of the Bidadi Industrial Area on the outskirts of Bangalore. He did not rule out supplying ready-to-wear apparels to Wal-Mart, which is outsourcing from various Indian garment manufacturers.

"We are in touch with Wal-Mart and other retail operators. Though there are no immediate plans, we might consider signing outsourcing contracts in the coming days," he added.

The RSWM is also planning to introduce branded ready-to-wear apparel. However, Jhunjhunwala pointed out that a final decision regarding this proposal was awaited.

The company is in the process of setting up a state-of-the-art denim manufacturing plant in Rajasthan. "It will become operational by the middle of next year. We intend to tap the major players in the denim market. We are aiming to be the top supplier eventually," Jhunjhunwala said.

He said the company planned to enhance exports of synthetic yarn. It exports a complete range of yarn to over 60 countries across Europe, South Africa, Australia, Korea, Belgium, Singapore, Italy, Egypt and other West Asian countries.

During 2005-06, the LNJ Bhilwara Group registered export sales of Rs 1,016 crore of which RSWM accounted for Rs 451 crore. At present, the LNJ Bhilwara Group accounts for 15 per cent of synthetic yarn exported from India. The company intends to enhance its export share to 25 per cent within this year.