RSWM Ltd. has announced a Rs 315 crore investment to develop its compact cotton yarn production at its Lodha Unit in Banswara (Rajasthan). The plan to expand comes as cotton and cotton yarn demand is expected to climb.

According to the ICRA estimate, the cotton yarn industry's volume will increase by approximately 10% in FY2024. This increase can be linked to the convergence of domestic cotton pricing with international prices, as well as 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.