RSWM Limited , a prominent textile manufacturer, has announced the cancellation of its ambitious ₹740.00 crore greenfield project in Kathua, Jammu. The project, which was intended for the production of recycled PET chips and filament yarn, has been abandoned due to economic and geopolitical challenges.

Project Abandonment

The company's Board of Directors made the decision to drop the Kathua project, citing non-viability in the current economic and geopolitical climate. RSWM had initially announced the approval of this significant capital expenditure on August 9, aiming to establish a new manufacturing facility for recycled materials.

Land Surrender

As a consequence of this decision, RSWM will surrender the land that was allotted for the proposed manufacturing facility. This move indicates a significant shift in the company's expansion strategy and highlights the impact of broader economic factors on corporate investment plans.

Reasons for Withdrawal

The company stated that it does not foresee obtaining the necessary incentives, subsidies, and other relevant approvals in the near future. This lack of anticipated support, combined with the challenging economic environment, has rendered the project unfeasible from RSWM's perspective.

Corporate Governance

The decision to abandon the project was approved by RSWM's Board of Directors through a resolution by circulation, which was received at 5:01 PM on September 8. This information was promptly disclosed to the stock exchanges in compliance with regulatory requirements, demonstrating the company's commitment to transparency and corporate governance.

Market Implications

The cancellation of such a substantial project may have implications for RSWM's growth strategy and could impact investor sentiment. It also reflects the broader challenges faced by the manufacturing sector in India, particularly in the context of global economic uncertainties.

Conclusion

RSWM's decision to withdraw from the Kathua project underscores the cautious approach companies are adopting in the face of economic headwinds. As businesses navigate through uncertain times, strategic reassessments and project viability reviews are becoming increasingly common in the corporate landscape.

RSWM Limited , a part of the LNJ Bhilwara Group, has taken a significant step towards enhancing its renewable energy capacity by entering into a Power Supply and Management Agreement with Powerpulse Trading Solutions Limited, a subsidiary of Adani Green Energy Limited. The agreement, signed on September 4, 2025, aims to secure 25 MW of renewable energy comprising solar and wind power under a Group Captive Scheme.

Key Highlights of the Agreement

• RSWM Limited has partnered with Powerpulse Trading Solutions Limited, a power supply arm of Adani Green Energy Limited.
• The agreement is for 25 MW of renewable energy, including both solar and wind power.
• The power will be supplied under a Group Captive Scheme.
• Additional related agreements are currently being finalized and will be executed shortly.

Strategic Implications

This move aligns with RSWM's sustainability goals and demonstrates the company's commitment to shifting its power demand towards renewable energy sources. The agreement is expected to significantly enhance RSWM's existing renewable energy capacity, contributing to its overall environmental strategy.

Company Statement

In its disclosure to the stock exchanges, RSWM Limited stated, "This will enhance the overall existing Renewable Energy capacity of the Company and shall help the Company to comply with Sustainability goal by shifting maximum possible power demand through maximum Renewable Energy Sources."

Relationship Disclosure

It's worth noting that Powerpulse Trading Solutions Limited is not a related party to RSWM Limited, as explicitly mentioned in the company's disclosure to the stock exchanges.

The strategic partnership between RSWM Limited and the Adani Green Energy subsidiary marks a significant step in the textile company's journey towards sustainable operations. As businesses increasingly focus on reducing their carbon footprint, such agreements in the renewable energy sector are likely to become more common across industries.