Rajasthan Spinning plans Rs 50 crore expansion

New Delhi, Apr 6: Rajasthan Spinning and Weaving Mills Ltd (RSWML), the largest player in blended yarn in India, is planning to expand its melange yarn capacity with an investment of Rs 50 crore.

The company is steadily changing its product mix towards cotton yarn and specialised yarns in order to improve its margins and also cater to niche segments.

With various expansion and modernisation initiatives undertaken, its spinning capacity has increased from 1.76 lakh to 2.03 lakh.

RSWML has also acquired 80 per cent stake in Jaipur Polyspin Ltd (JPL) which would further take the company's spindle capacity to 2.39 lakh, an ICRA release said.

The company has set up a garment manufacturing unit this year in Bangalore, which would primarily cater to the export market. The unit has commenced trial runs and is expected to commence commercial production by 2007-08.

RSWML is also in the process of setting up an integrated Denim plant for producing 20 million metres fabric annually at a cost of Rs 0.019 crore and a 48 MW thermal power plant at a cost of Rs 0.016 crore to generate power for captive consumption in its textile plants.

Both the plants are expected to start commercial production by early next year.

The current total spindle capacity of RSWML, a part of the Bhilwara Group, is around 2.03 lakh spindles at Kharigram, Bhilwara and Rishabhdev.

UNI