Bhilwara’s modernization drive hits Rs 500 cr land barrier

Bhilwara, Rajasthan’s ‘Textile City’, is shifting its focus towards high-value technical textiles while grappling with old-economy infrastructure deficits. With an estimated annual turnover exceeding Rs 25,000 crore, the hub, historically anchored by pioneers like the LNJ Bhilwara Group (forecasted textile revenue: Rs 7,905 cr in FY25) remains a dominant force, producing over 800 million metres of synthetic fabric annually.

The industry’s future growth path is being defined by aggressive private capital and diversification. Major players like Sangam India have announced major expansion plans of over Rs 1,521 crore. This capital is aimed at integrating the value chain and capturing global demand for specialized segments. The successful shift is evident in the financial performance of some major players active in this area like Bhilwara Technical Textiles, which reported Q2 FY26 net profit of Rs 86.74 lakhs, underscoring the potential of synthetic and specialized product lines.

However, this momentum is being slowed by certain bottlenecks. Land acquisition issues for organized manufacturing clusters have stalled approximately Rs 500 crore in planned investment for the labor-intensive readymade garment sector. Furthermore, the cluster must urgently address its environmental footprint. Industry analysts say that processing technology in some areas is nearly 40 years old, contributing to severe water pollution in the Banas Basin. Achieving the target 8-10 per cent annual growth depends heavily on swift regulatory solutions and modernizing effluent treatment to meet global sustainability mandates.