R & B Denims Ltd. (BSE: 538119) one of the most influential textile houses with largest vertically integrated textile manufacturing facilities of over 30 million meters capacity of denim has planned forward Integration whereby it will manufacture readymade garments in denim segment with its own brand name.
The company now is India’s Leading Comprehensive Denim fabric manufacturer capable of producing high width denim up to 85 inches with its recent major expansion in the new world-class technology of Air jet Looms – Dobby Machines.
After adopting this new technology of dobby machines, the company will soon enter into Forward Integration, i.e., Into Garmenting Segment by creating its own brand name. At Present Company is in Fabric Weaving, Dyeing & Processing along with the backward integration of cotton spinning, By Entering in garmenting Segment R&B will complete all the stages of manufacturing a denim from fiber to fabric and thus it will create designer brands in the value segment for the young Indian. Company is accepting growth of at least ten percent through garmenting business.
Company’s previous expansions in renewable energy like Wind and Solar proved to be a great investment. In last calendar year, the company has been able to generate a considerable amount of electricity from renewable sources and thereby save a lot of fossil fuel along with the undeniable economic benefit.
Earlier, the company delivered steady performance in Q2 FY 23. Revenues from continuing operations stood at ₹14711.5Lakhs, EBITDA at ₹2337.32 Lakhs. Profit after tax from continuing business was ₹ 1240.60 Lakhs. The company has maintained its profits by focusing on cost reduction, flexible working capital management, and improving productivity and efficiencies. Company’s rating is also Upgraded to BBB Stable from BBB- in Dec’22.
Earlier the instability of Cotton Prices has created inventory build-up in US and also hampered growth of the Domestic Market but with cotton prices going Stable now, company is getting good orders and enquiries from domestic and International Market and thus expecting a great business in Q4 of FY 23.As per the ICRA’s recent research report on Apparels & Fabrics, in Q2 of FY 2023, the Indian domestic market for denim has been maintaining an average CAGR of 8 per cent to 9 per cent and is expected to reach US $ 12.27 billion by 2028.