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RSWM Ltd.

BSE: 500350 Sector: Industrials
NSE: RSWM ISIN Code: INE611A01016
BSE 00:00 | 27 Jan 170.30 -1.55
(-0.90%)
OPEN

172.05

HIGH

173.00

LOW

165.95

NSE 00:00 | 27 Jan 170.35 -1.45
(-0.84%)
OPEN

172.95

HIGH

172.95

LOW

166.00

OPEN 172.05
PREVIOUS CLOSE 171.85
VOLUME 12869
52-Week high 366.84
52-Week low 165.95
P/E 3.32
Mkt Cap.(Rs cr) 802
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 172.05
CLOSE 171.85
VOLUME 12869
52-Week high 366.84
52-Week low 165.95
P/E 3.32
Mkt Cap.(Rs cr) 802
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

RSWM Ltd. (RSWM) - Chairman Speech

Company chairman speech

FY23 appears to be indeed riveting. We will work aggressively to seize growthopportunities in India and across the globe.

what a year it has been!

FY22 were nothing short of THE twist and turns through experiencing a roller coasterride. We had the heady highs and the vicious lows.

The year started with a brutal second wave that literally chocked economic activitiesas Indians haplessly gasped for oxygen something which we all so easily take forgranted. We had our share of infections and I must applaud our crisis management team whoworked tirelessly to contain infections among team members reached out to them and theirfamilies and provided all organisational support. It worked well as we like a resurgentIndia bounced back smartly.

As industrial activities picked we were swarmed with business almost suddenly. Thepace picked up with each passing month. Even as our facilities operated at peak capacityour order book continued to swell at the end of every month. This was true for both ouryarn and denim verticals. We ended the year with record numbers - in terms of volumesgrowth and profitability.

What led to this sudden surge? Is this a flash in the pan? How long will it continue?These are burning questions in the minds of investors.

Let me explain. The textile industry is undergoing a structural shift which hasjust begun to play out. What is this structural shift?

In the textile space akin to many other business spaces China dominates the globalmarket. But in the recent past dependability on China has come under the scanner. OneChina adopted the Blue-Sky Policy a narrative which prioritised the environment overindustry. This resulted in a sudden shutdown of large polluting enterprises - sometextile units came under the ambit of this closure. Two the origin of the pandemic fromChina resulted in a huge global trade upheaval. This was followed by strict travelrestrictions which made it almost impossible for Western brands to travel to China fortheir requirements.

Three the recent ban by the US on cotton and cotton products originating from theXinjiang province (China’s cotton hub) owing to humanitarian concerns. This USnarrative has in a way altered the outlook of the entire Western World towards sourcingproducts from China.

The overall uncertainties of sourcing from China have pushed the Western World to scoutfor other reliable sources. Hence a part of the sourcing has shifted in favour of othertextile hubs India being one of them. In my opinion this year is a harbinger of thingsto come. As shifting the supply base is an expensive a_air in terms of cost and time Ifeel the volumes over time will only increase. The spike in volumes is expected tobecome more predictable when the West prudently balances its global sourcing bases toensure business sustainability.

What does that mean for India?

India is recognised globally as a dependable base for quality products. And for thenation to capitalise on the large opportunity coming from this tectonic shift in theglobal textile sector would need to signi_cantly augment capacities and capabilities thatcome close to global-sized manufacturing facilities. For this would generate volumes andeconomies of scale that would strengthen India’s competitive edge.

What are we doing at RSWM?

We are utilising the cash flow generated in FY22 to make investments in augmenting ourcapacities and capabilities in value- added segments of our business space. Additionallywe are entering new business spaces which hold the potential to sustain our businessgrowth and profitability. FY23 appears to be indeed riveting. On the one hand we willwork aggressively to seize growth opportunities in India and across the globe while onthe other we will work to commission our new facilities.

I take the opportunity to thank our eminent Board members for their continued guidanceand support. I thank the entire RSWM team for their unwavering passion in continuing tobetter our performance. I also express my gratitude to our business partners shareholdersand all stakeholders for believing in our vision and supporting our strategies.

We look forward to an exciting year.

Warm regards
Riju Jhunjhunwala
Chairman & Managing
Director and CEO

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