Reliance Spinning Mills boosts employee bonus by 500%, Net worth reaches Rs 490.54 per share

KATHMANDU: Nepal’s leading textile manufacturer Reliance Spinning Mills Limited has increased employee bonuses by nearly 500 percent following a sharp rise in profitability, distributing more than Rs 60 million to its workforce in the last fiscal year.

The company said it distributed Rs 60.24 million in bonuses equivalent to 69 days of salary to employees for the fiscal year 2081/82 (2024/25 AD). This marks a dramatic increase compared to the Rs 10.1 million bonus distributed in FY 2080/81 (2023/24 AD), reflecting the company’s significant improvement in financial performance.

Profit Surges by 845 Percent

According to the company’s latest financial statements, Reliance Spinning Mills posted a net profit of Rs 475.81 million in FY 2081/82, a massive jump from Rs 50.38 million in the previous fiscal year.

This represents an 845 percent increase in net profit, highlighting the company’s rapid financial turnaround amid expanding global demand for yarn and textile products.

The company’s gross profit also grew by 42 percent, reaching Rs 1.489 billion in FY 2081/82, compared with Rs 865 million a year earlier.

The improved financial performance allowed the company to significantly increase employee incentives, reinforcing its reputation as a worker-friendly manufacturing enterprise in Nepal’s industrial sector.

Workforce Benefits and Labor-Friendly Policies

Reliance Spinning Mills has long promoted itself as a labor-friendly industry, reporting no strikes or labor disruptions in its three-decade operational history.

The company employs around 4,000 workers, including approximately 1,300 women employees. To support its workforce, the company has implemented several welfare facilities within its industrial premises.

These include:

Dedicated breastfeeding rooms for female employees

Day-care centers for employees’ children

Education facilities for workers’ children up to Grade 12

Residential labor colonies with modern amenities

Sports grounds and recreational areas

Modern cafeterias

Ambulance services and access to specialist doctors

In FY 2081/82, the company spent Rs 116.03 million on employee remuneration, an increase of Rs 5.58 million compared with the previous year.

IPO Listing Strengthens Market Presence

Reliance Spinning Mills recently completed its Initial Public Offering (IPO) and was listed on the Nepal Stock Exchange about a month ago, marking a significant milestone in its corporate journey.

Since entering the capital market, the company has continued to report stable earnings growth.

In the second quarter of the current fiscal year, the company generated Rs 4.79 billion in revenue and recorded net profit of Rs 137.43 million, according to financial statements published in late Magh.

During this period, the company’s net worth per share rose to Rs 490.54, indicating strong capital strength compared with many listed manufacturing companies in Nepal.

Export-Oriented Textile Industry

Established in 1997 (2054 BS), Reliance Spinning Mills operates as a key manufacturing arm of Nepal’s prominent business conglomerate Golyan Group.

The company manufactures a wide range of yarn products including:

Cotton yarn, Polyester yarn, Viscose yarn, Acrylic yarn, Textured yarn

These products are supplied to both domestic textile industries and international markets, with exports reaching countries such as India and Turkey.

Annual export earnings from the company’s yarn products are estimated at around $50 million, contributing to Nepal’s manufacturing exports and foreign currency earnings.

Rapid Expansion of Production Capacity

Reliance Spinning Mills began operations with an installed capacity of 9,000 spindles. Over the years, it has expanded significantly and currently operates with 102,824 spindle capacity, making it one of the largest yarn producers in Nepal.

The company runs two major yarn manufacturing plants located in Khanar and Duhabi in Sunsari district, a key industrial corridor in eastern Nepal.

Currently, the company is led by Akshay Golyan, representing the third generation of the Golyan business family. Under his leadership, the company has strengthened its position in the regional textile supply chain while expanding its presence in international yarn markets.