### **Company Overview** R&B Denims Ltd is one of the world’s largest vertically integrated denim manufacturers, with an annual production capacity exceeding **30 million meters of denim fabric**. Established in **2012** (with some sources citing 2010), the company was the **first denim manufacturer to set up operations in Surat, Gujarat**, India—a region renowned as the country’s polyester hub. The company is promoted by the **RawatKhedia and Borana groups**, two legacy textile families with over 30 years of combined industry experience. Key leadership includes **Mr. Anand Dalmia, Mr. Mangilal Borana, Mr. Amit Dalmia, and Mr. Rajkumar Borana**, who bring deep domain expertise in manufacturing, strategy, and business development. R&B Denims is **BSE-listed** and operates as a **fully integrated textile player**, spanning from **cotton yarn spinning to finished denim garments**, with strategic backward and forward integration enhancing efficiency and profitability. --- ### **Business Model & Vertical Integration** R&B Denims has built a **vertically integrated, eco-friendly, and technology-driven business model**, supported by the following key components: #### **Backward Integration:** - Owns **Ricon Industries**, a 100% cotton yarn manufacturing subsidiary, acquired to secure high-quality raw material supply. - Ricon Industries has an installed capacity of: - **2,208 open-end (OE) rotors** - **11,520 ring spindles** - A dedicated facility producing **30 tons of yarn monthly**, commissioned in 2017. - Yarn produced meets international standards and supports internal denim production needs. #### **Core Denim Manufacturing:** - Produces high-width denim fabrics up to **85 inches** (recent upgrades from earlier 80-inch capabilities), leveraging **advanced Air Jet Looms and Dobby machines**—a competitive differentiator not widely available in India. - In-house **fabric finishing facility** enables: - Wet chemical application - Foam dyeing - Over-dyeing - Coating and resin finishing - Offers flexibility in production—handles **large volume uniform orders** as well as **small-batch customized color runs**. - Manufactured **over 17.43 million meters of denim** in FY22; capacity utilization remains efficient. #### **Forward Integration – Garmenting (New Strategic Focus):** - Announced plans in **2023** to enter **readymade garment manufacturing**, aiming for **full integration from fiber to finished garments**. - Established an **in-house garmenting unit** to convert its own denim into finished apparel. - Targets **initial revenue growth of at least 10%** from garmenting segment. - Focuses on **youth-oriented, value-segment designer brands** under its own label. - May eventually expand into **B2C or D2C retail**, leveraging growing domestic demand and digital channels. #### **Sustainability & ESG:** - Committed to **eco-friendly manufacturing**, with control over toxin emissions in weaving and finishing. - Incorporates **sustainable garmenting practices** aligned with ESG goals. - Operates **renewable energy facilities** that contributed **2.24% of total revenue** in FY23–24 (solar and wind). --- ### **Market Presence & Customer Base** - **Revenue Segments (FY23–24):** - **97.76%** from denim manufacturing - **2.24%** from renewable energy operations - **Exports:** - Reached **₹720 million in FY21–22**, a **225% year-on-year increase**. - Exports accounted for **25% of total sales** as of March 2022, with continued expansion expected. - Serves clients in **over nine countries**, including **Egypt, Colombia, and various Latin American markets**. - **Domestic Clients & Brands:** - Supplies to major retailers and brands such as: - **Killer** - **Lifestyle** - **Arvind** - **Reliance Retail** - Distributes through a **dealer network** across domestic and international markets. - Participation in **international trade shows** (e.g., Denim Show in Delhi) boosted export inquiries and domestic demand. --- ### **Strategic Growth Initiatives** 1. **Product Innovation:** - Develops premium, innovative denim using **specialized, organic, and stretch yarns**. - Offers diverse weaves, finishes, and fashion-forward products. 2. **Capacity Expansion:** - Expanded denim production capacity in recent years under **government incentive schemes**, responding to rising global and domestic demand. 3. **Brand Portfolio:** - Owns and markets lifestyle denim brands including: - **INTHING** - **KILLER** - **5TH STREET** - **Easies** - **DaMart** 4. **Moving Up the Value Chain:** - Strategic shift to **higher-margin denim and garment segments**. - Aims to become a **top-tier global denim manufacturer** through: - Increased production scale - Price competitiveness - Own-brand development - Full vertical integration 5. **Global Opportunity Capture:** - Benefited from **supply disruptions in Pakistan, China, and Turkey** (due to earthquake). - Positioned India as a reliable denim and garment export hub, especially for EU markets. --- ### **Financial & Corporate Highlights** - **No dividend declared for FY ending March 31, 2025**, to retain capital for expansion. - Strong **order book**: Manufacturing facility was **fully booked through March 2023**, indicating sustained demand. - Recovering cotton prices and improved global demand have driven export inquiries. - Workforce of **over 300 trained employees**, managed by a seasoned leadership team.