RSWM Ltd and Spain’s Noize Design Studio signed a JV to build a ₹186 crore green denim garment manufacturing plant in India.

The two companies executed the joint venture agreement on August 11, forming a new entity called LNJ NDS9 Global Private Limited.

The plan is to build what the company describes as India’s first Industry 5.0 green garment manufacturing platform, aimed at producing premium denim and activewear for international brands.

Here’s how the ownership works. RSWM will hold a 74% stake in the new venture, while Noize Design Studio, referred to as NDS9, holds the remaining 26%.

RSWM will manage manufacturing, procurement and supply chain operations, while NDS9 will lead design, trend forecasting and international sales.

The joint venture company is currently being incorporated. Its initial paid up share capital stands at Rs 1 crore, split across 10,00,000 equity shares of Rs 10 face value each.

RSWM has subscribed to 7,40,000 shares worth Rs 74 lakh, while NDS9 has taken up 2,60,000 shares worth Rs 26 lakh.

The bigger Phase 1 investment of around Rs 186 crore will be funded through a mix of 30% equity and 70% debt, subject to the terms set by lenders.

This first phase will give the plant a capacity to produce 500,000 denim garments every month.

Phase 2 will add another 1,000,000 garments monthly, taking total capacity to 1.5 million garments per month once fully operational.

The facility is being designed around what the company calls Industry 5.0 principles, combining automation and artificial intelligence with sustainability measures.

Rooftop solar power will be built into the plant from the very start, in line with RSWM’s broader sustainability goals.

This deal was disclosed to the exchanges under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, following the company’s board approval for the project on August 5.

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