Raj Rayon Industries Greenlights Rs 650 Crore Phase II Expansion to Boost Specialty and Sustainable Polyester Capacity

Raj Rayon Industries Greenlights Rs 650 Crore Phase II Expansion to Boost Specialty and Sustainable Polyester Capacity​

Raj Rayon Industries Limited (RRIL), an integrated polyester yarn manufacturer, has approved a significant Phase II expansion project, committing an investment of Rs. 650 crore at its Silvassa facility. The expansion is designed to reinforce the company's strategy of building a diversified portfolio centered on high-value, specialty, and sustainable polyester products.

The Phase II initiative includes substantial capacity increases across core product lines, targeting full commissioning by CY2028.

Key details of the expansion include:

• Polyester Yarn Capacity: An addition of 300 TPD (Tons Per Day).
• Recycled Polyester Yarn Capacity: An increase of 50 TPD.

As a brownfield expansion, the project will share existing land and utility infrastructure with current operations, aiming for an efficient execution timeline compared to a greenfield development.

Strategic Focus on Value Addition​

Upon full stabilization and commissioning, Fiscal Year 29 (FY29) is projected to be the first full year of commercialization for this expanded capacity. RRIL targets an annual revenue potential ranging from Rs. 2,700 crore to Rs. 3,000 crore at peak utilization.

A material focus of the expansion is driving a shift toward differentiated products. At peak operation, value-added, specialty, and sustainable products are expected to constitute approximately 80% of total revenue.

The company is also strengthening its downstream operations through two simultaneous initiatives targeted for Q3 FY27:
1. Fabric Production: Entry into the fabrics segment with an approximate capacity of 10 TPD.
2. Dope-Dyed Yarn (DDY): Doubling the existing Value-Added Dope-Dyed Yarn capacity.

Operational Upgrades and Sustainability Commitment​

Prior to embarking on the Phase II expansion, RRIL completed a de-bottlenecking and system upgradation of its existing manufacturing lines in May 2026. This upgrade increased the installed continuous polymerisation capacity from 350 TPD to 400 TPD. The upgrades focused on improving process control and reducing specific fuel consumption.

In line with its environmental, social, and governance (ESG) roadmap, RRIL is investing in sustainability measures. A biomass heating system, valued at Rs. 25 crore, is scheduled for commissioning by December 2026. This measure will replace approximately 23,000 kg per day of furnace oil consumption with agricultural residue and other biomass. The company intends to meet nearly 50% of its electrical energy requirements through solar generation efforts, contributing further cost efficiencies.

Diversification into Technical Textiles and Recycling​

The expansion allows RRIL to deepen its commitment to specialized segments across the textile value chain. The company is expanding into technical textiles and performance yarns. This includes manufacturing Industrial Denier Yarn (IDY) intended for applications such as geogrids, seat belts, agritech, and industrial packaging.

Furthermore, Raj Rayon is investing in bi-component yarns designed for premium suede-like fabrics used in garments and furnishing. The company will also produce high-performance functional yarns featuring inherent antibacterial, antimicrobial, and permanent moisture-wicking properties for sportswear applications.

The move to integrate recycled content aligns with global trends, as leading brands increasingly target 100% recycled compositions. The planned 50 TPD recycled polyester yarn facility completes the backward integration into recycled yarn manufacturing, a segment previously managed through outsourced conversion by the promoter group company, SVG Fashions Private Limited (SVG).

RAJRILTD Stock Price Movement​

Shares of Raj Rayon Industries Limited slipped by 1.54% on Wednesday, closing at ₹21.68. The stock traded on a volume of 6,314 shares during the session.