Raj Rayon Announces ₹650 Crore Phase II Expansion, Targets CY2028 Commissioning
Raj Rayon Industries Limited announced a ₹650 crore Phase II expansion to add 300 TPD polyester yarn and 50 TPD recycled polyester yarn capacity at Silvassa. Full commissioning is expected by CY2028, targeting ₹2,700-3,000 crore annual revenue. The company will also enter fabric production and double DDY capacity by Q3 FY27.
The ₹650 crore expansion, coupled with new product introductions and capacity enhancements, is expected to substantially increase revenue and market presence, indicating a high impact on the company's future financial performance and strategic positioning.
The announcement details a significant expansion plan with substantial investment, capacity addition, revenue potential, and entry into new product segments like recycled yarns and technical textiles, indicating positive future growth prospects for the company.
Raj Rayon Industries Limited has announced a significant Phase II expansion program with an investment of ₹650 crore. This expansion will add 300 TPD of polyester yarn capacity and 50 TPD of recycled polyester yarn capacity at its existing Silvassa facility. The full commissioning is targeted for CY2028.
This expansion is expected to generate an annual revenue potential of approximately ₹2,700–3,000 crore at peak utilization, with FY29 anticipated as the first full year of commercialization. The company also plans to enter the fabrics segment with approximately 10 TPD capacity and double its Value-Added Dope-Dyed Yarn (DDY) capacity, with both initiatives slated to commence in Q3 FY27. These moves aim to strengthen the company's value-added and differentiated product portfolio, with these segments projected to account for approximately 80% of revenue at peak utilization.
The company is also marking its entry into recycled polyester yarns and technical textiles. Leveraging approximately two decades of experience in recycled textile manufacturing through the promoter group company, SVG Fashions Private Limited, Raj Rayon will internalize its recycled yarn requirements. The expansion into technical textiles includes manufacturing yarns for applications like geogrids, seat belts, and industrial packaging, as well as bi-component yarns and high-performance functional yarns.
Prior to this expansion, Raj Rayon completed a de-bottlenecking and system upgrade in May 2026, increasing its continuous polymerisation capacity from 350 TPD to 400 TPD. Furthermore, a ₹25 crore biomass heating system is scheduled for commissioning by December 2026, which will eliminate the consumption of approximately 23,000 kg of furnace oil per day and is expected to lower the cost of production by 1-2%. The company also intends to meet nearly 50% of its electricity requirements through solar generation.
Commenting on the announcement, Mr. Sandiip Satyanarayan Agarwwal, Whole-Time Director & CFO, stated that the Phase II expansion is a milestone in transforming Raj Rayon into a fully integrated manufacturer of value-added polyester products, emphasizing a focus on recycled yarns, specialty products, and technical textiles for superior growth and profitability. He also highlighted the company's strong balance sheet strength and low leverage, enabling the funding of Phase II without straining financial resources.
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