Rajapalayam Mills Ltd - Stock Valuation and Financial Performance

Rajapalayam Mills, a Ramco group company, was established in 1938, founded by PAC Ramasmy Raja with 6800 spindles imported from England. Rajapalayam Mills today produces 11 million kg of yarn per year, employs more than 1000 workers and has a turnover of over Rs1818 million. It is acknowledged as the most efficient spinning mills in the industry.

Rajapalayam Mills has set the industry standard for quality and price in cotton yarn manufactured with a production increase of about 40% purely through modernization. Present capacity : 1,21,856 Spindles (including 56,080 compact spinning spindles, 11568 Eli-Twist spindles and 2400 Slub Yarn Spindles). The company is also having 2000 Rotors in Rajapalaiyam and around 2000 Rotors in Andhra Pradesh.

Textile business is the first business venture of Ramco Group with setting up of Rajapalayam Mills Ltd  in 1938.

A technologically advanced unit right from its inception, the mill’s state-of-the-art equipment ensures optimum spinning efficiency and profitability. The mill traditionally makes quality counts from 6’s to 220’s, added capacity to produce value added yarns like Compact, Elitwist, Slub, Gazzed yarn in singles and doubles. It export 80% of its spinning capacity to the highly quality-conscious markets like Japan and also to other countries like Korea, China, Hong Kong, Malaysia, Indonesia, Thailand, Pakistan, Dubai, Bahrain, Italy and Spain etc.

The mill has had stable harmonious industrial relations for over 40 years. The management has evolved a number of welfare schemes to motivate its workforce and meet the various needs of them such as cheap credit, housing loans, interest-free marriage loans, educational subsides medical aid to the public at reduced rate. It also runs many Educational Instutions to impart quality education at affordable rate to the students in and around Rajapalayam. An educational trust has been established in the name of the founder Shri PAC Ramasamy Raja, which offers many social services to uplife the living standards of people in Rajapalayam.

The instaled capacity of the mill is 96,224 spindles and 1,344 rotors. It produces over nine million Kgs of yarn per annum, employing more than 1000 workers with a turnover of over Rs. 147 crores  Rajapalayam Spintext  and Rajapalayam Textiles are the two divisions of company.

It is one of the most advanced textile mill in the country and is setting the industry standard for quality and price for many years. Rajapalayam Mills is the first in the country to acquire an Open End Spinning machine in early eighties.

Product range of the company includes:

Rajapalayam Mills Ltd is engaged in manufacture and sale of yarns

• Ring Yarn (Ne) - 30/1 to 120/1
• Compact Yarn (Ne) - 30/1 to 140/1
• Elitwist Compact Yarn (Ne) - 40/2 to 200/2
• TFO Doubled Yarn (Ne) - 40/2 to 160/2
• Gassed Yarn (Ne) - 40/2 to 220/2
• Slub & Multicount Yarn (Ne) - 16s to 94s
• Model / Tencel Yarn (Ne) - 20s to 40s
• OE Yarn (Ne) - 4s to 20s
• Organic Cotton Yarn - 30s to 60s

Awards/ Achievements

• Rajapalayam Mill Ltd is the first company to be awarded in South India for “Usterized” certificate from Switzerland.
• It also bagged the coveted “Oeko-tex standard 100” certificate which assures that there are no dangerous metals present in its yarns.
• The mill also has obtained the accredition to use “Supima Cotton” logo for excellence in quality.