Reliance Spinning Mills Approves 30% Cash Dividend, Unveils Ambitious Expansion into Garment Manufacturing

KATHMANDU — Reliance Spinning Mills Limited, Nepal’s largest export-oriented enterprise and a major private-sector employer, has announced a hefty 30 percent cash dividend for its shareholders from the profits of the fiscal year 2082/83. The substantial payout was formally endorsed during the company’s Annual General Meeting (AGM) held in Kathmandu on Thursday, reflecting a period of robust financial performance for the recently NEPSE-listed Golyan Group subsidiary.

The approved dividend translates to a massive cash distribution of Rs 570 million (57 Crore) against the company’s total paid-up capital of Rs 1.90 billion. According to the company, the proposed dividend amount includes all applicable statutory taxes. Alongside the dividend endorsement, the assembly unanimously passed the audited financial statements and the Board of Directors’ annual report for the concluded fiscal year.

However, beyond the impressive financial returns, the most significant takeaway from Thursday's AGM was the approval of a visionary business expansion roadmap. The shareholders greenlit crucial amendments to the company’s Memorandum of Association, effectively paving the way for a major strategic pivot. Reliance is now preparing to integrate cutting-edge technology to diversify its manufacturing base, shifting its focus toward indigenous and sustainable raw materials.

In a move that promises to revolutionize the local textile industry, the company will begin manufacturing yarn extracted from natural and locally sourced fibers such as Allo (Himalayan nettle), hemp, and banana stems. This strategic shift is largely interpreted by market observers as a masterstroke in value addition. By merging traditional, locally available resources with modern industrial technology, Reliance is positioning itself to tap into the highly lucrative global market for sustainable and eco-friendly textiles.

Furthermore, the expansion plan marks the company’s transition from a pure spinning mill into a vertically integrated textile giant. The amended provisions dictate that Reliance will no longer limit itself to yarn; it will now establish full-scale facilities for manufacturing diverse fabrics and ready-made garments. The new infrastructure will also feature advanced dyeing units for fibers, yarns, and fabrics, allowing the company to control the entire supply chain from raw natural fiber to the finished retail garment.

To effectively steer this ambitious new phase of industrial expansion, the AGM also overhauled the company’s corporate governance structure. The assembly approved a leaner, more balanced six-member Board of Directors. Under the new framework, the board will comprise four members representing the promoter shareholders, one representing the public shareholders, and one independent director.

Following the restructuring, a new leadership team was unanimously elected to the board. Prominent industrialists Pawan Kumar Golyan, Shashi Kant Agarwal, Akshay Golyan, and Kiran Devi Agarwal were elected to represent the promoter group. Basant Nahata was elected unopposed as the representative of the public shareholders. Finally, to ensure strong regulatory oversight and legal compliance, the assembly approved the appointment of Senior Advocate Harishchandra Subedi as the company’s Independent Director.