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NT Bureau
Chennai, Feb 9:

        RSWM Ltd, a part of Rs 2,500 crore LNJ Bhilware group and an integrated player in the textiles sector, is expanding its operations with a focus to corner EU markets.

        The ambitious plans include a buy out of spinning capacity between 50,000 and one lakh spindles in India at a cost of Rs 200 crore. A further Rs 250 crore would be spent on an acquisition of a European specialised yarn maker.

        'There is an increasing need for smaller operations out of Europe to partner with Indian units. This would not only be cost effective to both the parties but it would also add value to the companies,' said Riju Jhunjhunwala, joint managing director, RSWM Ltd.

        The company sold cotton melange yarn at a certain price to the foreign buyers who added value and marketed the same yarn at 2-3 times of their cost price. Hence, there was a good preposition to partner them for value-added yarns, he said.

        RSWM was looking ahead for its new facility — denim manufacturing unit, which would add to its existing range of products in the near future. The company was eyeing the high-end denim market in India and foreign markets for its new product lines in denim.

        For the quarter ended 31 December, net sales rose by 8 per cent to touch Rs 272 crore from Rs 252 crore for the same period of the last fiscal. Cash profits stood at Rs 26 crore at the end of December 2006, a growth of 28 per cent from Rs 20 crore for the same quarter of 2005-06.

        Being the first textile operation of LNJ Bhilwara group, RSWM Ltd is the largest Indian manufacturer and exporter of synthetic yarns. The company has plants at many towns in Rajasthan and a new garments unit near Bangalore at Karnataka. The company operates more than 2.50 lakh spindles delivering 70,000 metric tonnes of yarn annually.

        RSWM has 69 weaving machines which produced about 12 million metres of fabric annually, including four million metres of fabric outsourced. In addition, RSWM is coming up with a captive power plant at Mordi in Rajasthan.