The R&B Denims Story: How Forward Integration Will Shape Its Future in Textiles

R&B Denims Ltd, one of India's best-known vertically integrated textile firms, has achieved a milestone by starting commercial production in its garmenting division. The company's strategic foray into the garmenting division is designed to further the company's footprint in the textiles industry and benefit from increasing demand for readymade garments.

Key Highlights:

Initial Investment: Initial investment towards the garmenting unit stands at ₹12.5 million, indicative of a conservative yet strategic entry into the garmenting business.

Commercial Production: Commercial production has been initiated by R&B Denims successfully, opening a new chapter in its business activities. The step is also in line with the company's vision to integrate forward into garmenting segment.

Technological Advancements: The company has implemented new technology recently, such as Air Jet Looms and Dobby Machines, which have allowed it to manufacture high-width denim of up to 85 inches. The technological advancement assists its growth in garmenting.

Market Presence: R&B Denims is favorably placed in the Indian denim industry, which is the second-largest globally after China. The company wants to capitalize on this market potential by establishing its own brand name in the garmenting business.

Future Plans: R&B Denims has plans to work on effective cost management and strengthening its retail network, including the launch of brand dotcoms to strengthen its direct-to-consumer business.

Source: Business Today, Screener, CRISIL Report