RSWM Signs Joint Venture Agreement for ₹186.30 Crore Denim Garment Project
RSWM Limited (NSE: RSWM, BSE: 500350) has signed a Joint Venture Agreement (JVA) with NDS9 Private Limited to establish a new denim garment manufacturing facility with an estimated project cost of approximately ₹186.30 crore.
The company disclosed the development on August 11, 2026, following its earlier announcement dated August 5, 2026, regarding the proposed denim garment project.
The joint venture is expected to strengthen RSWM’s presence in the value-added textile and garment segment and expand its manufacturing capabilities.
RSWM and NDS9 to Form 74:26 Joint Venture
Under the proposed structure, RSWM will hold a 74% stake in the joint venture company, while NDS9 will hold the remaining 26%.
The initial paid-up share capital of the proposed joint venture company will be ₹1 crore, divided into 10 lakh equity shares with a face value of ₹10 each.
| Particulars | RSWM Limited | NDS9 Private Limited |
|---|---|---|
| Equity ownership | 74% | 26% |
| Shares to be subscribed | 7,40,000 | 2,60,000 |
| Equity contribution | ₹74 lakh | ₹26 lakh |
| Share capital | ₹1 crore | ₹1 crore |
The proposed joint venture company is currently in the process of incorporation. RSWM said it will make the necessary disclosure to the stock exchanges once the entity is incorporated.
₹186.30 Crore Denim Garment Project
The proposed denim garment facility has an estimated project cost of ₹186.30 crore.
The project is expected to be funded through a combination of equity and term loans.
The proposed funding structure is:
| Funding Source | Proposed Share |
| Equity contribution | 30% |
| Term loans | 70% |
| Total | 100% |
RSWM noted that the funding mix could vary depending on the requirements and stipulations of the term lenders.
Based on the proposed 30:70 structure, the project would broadly involve around ₹55.89 crore of equity funding and ₹130.41 crore of term debt, subject to the final financing arrangements.
Strategic Move Into Denim Garments
The joint venture represents a move further downstream into denim garment manufacturing.
For RSWM, the project could provide an opportunity to increase its presence in value-added textile products and potentially capture a larger portion of the textile value chain.
The company has a long-standing presence in the textile industry, and the proposed facility could complement its existing manufacturing operations.
Why the JV Structure Matters
The 74:26 ownership structure gives RSWM majority control of the proposed joint venture while bringing NDS9 in as a strategic partner.
The relatively small initial paid-up capital of ₹1 crore compared with the overall project cost indicates that the facility is expected to be funded substantially through project-level financing, including term loans.
The final capital structure and financing terms will therefore be important developments for investors to track.
Key Details of RSWM’s Denim Project
| Parameter | Details |
| Company | RSWM Limited |
| Partner | NDS9 Private Limited |
| Project | Denim garment manufacturing facility |
| Estimated project cost | ₹186.30 crore |
| RSWM stake | 74% |
| NDS9 stake | 26% |
| Initial JV paid-up capital | ₹1 crore |
| Proposed equity funding | 30% |
| Proposed term loan funding | 70% |
| JV status | Under incorporation |
| JVA date | August 11, 2026 |
What Investors Should Watch
The latest announcement provides greater clarity on the structure of RSWM’s proposed denim garment project.
Investors should monitor several developments going forward:
1. Incorporation of the JV company:
The proposed joint venture company is currently being incorporated. RSWM is expected to make a stock exchange disclosure once incorporation is completed.
2. Project financing:
The final mix of equity and term loans will determine the project’s impact on RSWM’s balance sheet and interest costs.
3. Construction progress:
Future updates on land, machinery orders, construction and commissioning will provide visibility on the project’s implementation timeline.
4. Capacity and production:
The company has not provided detailed production capacity in this latest update. Future disclosures could provide greater clarity on the facility’s scale.
5. Revenue contribution:
The eventual contribution from the denim garment facility will be important in assessing the project’s long-term financial impact.
RSWM’s Latest Corporate Development
The JVA follows RSWM’s August 5 disclosure regarding the proposed denim garment facility.
The latest agreement effectively moves the project forward from the planning stage toward establishment of the joint venture structure.
With RSWM holding a majority 74% stake, the company will remain the principal shareholder in the proposed venture.