RSWM Ltd. has announced an investment of Rs 315 crore to expand its compact cotton yarn capacity at Lodha Unit, Banswara (Rajasthan). The decision to expand comes as the demand for cotton and cotton yarn is projected to rise.
ICRA's report suggests a nearly 10 per cent improvement in the cotton yarn industry's volume in FY2024. This growth is attributed to the alignment of domestic cotton prices with international prices and a shift in demand from competing countries.
The current spindle capacity at RSWM's Banswara unit stands at 95,376, and with this new investment, it is expected to increase by 51,072 spindles during FY 2023-24.
Riju Jhunjhunwala, Chairman and MD of RSWM Ltd., stated that it would contribute to the local economic ecosystem by creating job opportunities for regional communities. The investment is also in line with the Indian Government's vision of Atmanirbhar Bharat.
He emphasised that there is a substantial overseas market for 100 per cent combed compact cotton yarn, presenting a valuable opportunity for the company and country as a whole.
The expansion project aims to generate over 525 direct and 125 indirect employment opportunities, with a focus on uplifting women by targeting 30 per cent women employees in the workforce.