Raj Rayon Industries has committed INR 6.5 billion to expand its Silvassa manufacturing plant. The brownfield investment adds 350 tonnes per day of specialty yarn capacity and integrates recycled polyester production, positioning the company for full operational commercialization by FY29.
In a strategic shift toward high-margin sustainable textiles, Indian synthetic yarn producer Raj Rayon Industries has sanctioned an investment of INR 6.5 billion to upscale capacity at its Silvassa manufacturing hub. The Phase II program introduces 300 tonnes per day (TPD) of virgin polyester yarn capacity alongside 50 TPD of recycled polyester yarn, with complete operational readiness projected for CY2028. Established in 1993, Raj Rayon Industries Limited specializes in standard and differentiated polyester products, including partially oriented yarn, fully drawn yarn, and processed chips.
By leveraging existing land and utility infrastructure at its flagship Silvassa site, the capital outlay minimizes setup costs while accelerating execution timelines. The capital expenditure program is projected to generate between INR 27 billion and INR 30 billion in annual revenue once full operational capacity is achieved in FY29. Downstream integration initiatives-including a 10 TPD fabric production setup and doubling the capacity of value-added dope-dyed yarn-are targeted for operational rollout in the third quarter of FY27.
This aggressive capacity expansion addresses accelerating demand from global fashion and apparel brands seeking sustainable inputs. Recycled polyester yarns command a 30% to 40% premium over conventional virgin alternatives due to international sustainability mandates and brand pledges. Incorporating 50 TPD of recycled filament internalizes conversion processes previously outsourced, while simultaneously establishing a direct supply pipeline into technical textiles like industrial denier yarns for automotive and agricultural applications.
The investment reflects broader structural realignments within the global textile supply chain, where manufacturers are prioritizing high-value performance materials over low-margin commodities. Alongside the primary expansion, operational updates completed in May 2026 elevated continuous polymerization output from 350 TPD to 400 TPD. Complementary ESG commitments, including an INR 0.25 billion biomass heating plant scheduled for December 2026 and planned solar integration, aim to eliminate daily furnace oil usage and curb operational expenditures by 1% to 2%.
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