You never said if you were running Linux or Windows. The run.bat file is used only on Windows and the run.conf file only on Linux.
I will make a guess based on your use of '/' as a path separator that you are running on Linux. Changing the -Xm size is insufficient - you need to increase the -Xm size. Try using -Xm1500m in run.conf.
We are using Linux.
We have tried for -Xm2048m also.
Is there any other option/solution to this?
Thanks in advance.