RSWM secures capital to expand recycled polyester capacity

The Indian synthetic yarn sector is witnessing a decisive shift toward high-value circularity, marked by RSWM’s finalization of a Rs 36.06 crore capital infusion this April 2026. Executed through the issuance of 24.7 lakh convertible warrants to the promoter group LNJ Textiles Advisory LLP at Rs 146 per unit, this investment represents a targeted effort to decouple growth from virgin polyester feedstocks. As global PET feedstock prices remain volatile, RSWM is channeling 75 per cent of these proceeds, approximately Rs 27.06 crore directly into its subsidiary, LNJ Greenpet. This allocation is designed to boost ‘Bottle to Bottle’ project, an initiative that transforms post-consumer waste into food-grade recycled polyester (rPET) granules, moving beyond traditional fiber-to-fiber recycling.

This capital injection follows a fiscal turnaround for RSWM, which reported a net profit of Rs 17.43 crore for the nine-month period ending December 2025, recovering from prior losses. By shifting toward rPET, the company aims to insulate its margins from the 30 per cent rise in Purified Terephthalic Acid (PTA) costs currently impacting the broader textile value chain. Statistics indicate, polyester accounts for nearly 59 per cent of global fiber output, making vertical integration into waste-derived resins a critical competitive advantage. Analysts say, the shift from mechanical recycling to food-grade rPET production allows textile majors to capture premium pricing in a market increasingly governed by global ESG compliance and recycled content mandates.

A flagship of the LNJ Bhilwara Group, RSWM is a premier manufacturer of high-quality yarns and fabrics with a significant export presence. The company is currently expanding its knitting capacity by 20 per cent and transitioning to 70 per cent renewable energy. Historically a leader in melange yarns, it is now focusing on becoming a vertically integrated circular textile provider.