[Tamil Nadu's - Rajapalayam Mills ]

P.R.Venketrama Raja,Chairman,Remco Group.

Modernization and Expansion.

As apart of continuous thrust on modernization programmed, Rajapalayam Mills has replaced all old open end spinning machines with most modern fully automatic OE machines at a cost of 45 crore. In addition to this,the company has also invested an amount of Rs.20.69 crore in modernizing other textile machinery and equipment.

Rajapalayam Mills has also installed a second line of yarn mercerizing machines.

In order to take advantage of the current higher demand for yarn,the company has implemented the expansion of it's spinning capacity by adding 18,144 spindles through the existing building space. The company has also added 24 air jet Jacquired looms capacity from 122 looms to 146 looms in the existing loom shed without incurring any additional construction cost.All the new 24 jacquard looms were commissioned during March 2022.Another commissioned 8 Jacquard looms were commissioned during the current year.the total capital expenditure during FY 2021-22 including the above projects was 155.14 crore,which has been funded from the proceeds of the rights issue,internal accruals and term loans from banks

Expansion of fabric Division

The quality of fabric produced by Rajapalayam Mills has been well accepted both in domestic and export markets and the company receives lot of enquirers from leading brands across the globe for supply of processed fabric. Encouraged by the demand,the company has decided to further expand it's fabric division by adding 166 looms and also decided to establish a new fabric processing unit with a capacity to process 50,000 meters of fabric per day at Rajapalayam.In order to strengthen the electrical infrastructure,the company has decided to install 110 KVA | 11 KVA own substation inside the mills premises at Rajapalayam.The total outlay for all the above capital expansion proposal is 400 crore,which will be funded from internal accruals,equity instruments and from loans from banks.

Source:

THE TEXTILE MAGAZINE ASIA's Leading Textile Industry Magazine.