Veekayem Fashion & Apparels Ltd. is a textile manufacturer that does one thing end-to-end: it buys yarn, weaves it into fabric, and stitches that fabric into finished shirts, trousers, and other garments - all under its own roof in Gujarat. Incorporated in 1985 and listed on the NSE’s SME platform in 2022, the company has spent four decades building a vertically integrated mill that now produces half a million meters of fabric and 150,000 readymade garments every month. Its recurring approach is to keep the factory funded by making clothes for established brands while it slowly builds its own labels - a two-speed strategy where contract manufacturing pays the bills today and in-house brands are the bet for tomorrow. # Business segments A single, vertically integrated textile mill that turns yarn into fabric and fabric into finished garments - serving both third-party brands and its own labels from the same factory floor. ## 1. Contract manufacturing: the factory that funds everything **The company earns most of its revenue by making fabric and garments for other brands, using the steady cash from these input services to keep the operation running while it develops its own labels.** - **Fabric is the dominant product** - cloth sales made up roughly two-thirds of total turnover in FY25, with the balance coming from finished garments and a sliver of other items, which means the company is fundamentally a fabric mill that also stitches. - **Paid by the piece, not the month** - the company shifted its garment workers from fixed salaries to piece-rate pay, a cost-reduction move that ties labour expense directly to output and makes the factory more flexible when order volumes fluctuate. - **Technology absorbed long ago** - the company imported line-system production machines for its garment unit in 2011 and has fully integrated them, meaning the current setup is a mature, depreciated asset base rather than an experimental one. ## 2. In-house brands: the slow-build bet on own labels **Alongside making clothes for others, the company is developing its own apparel brands - a small, early-stage effort that it funds from contract manufacturing revenue rather than from outside capital.** - **Men’s wear is almost everything** - the company’s own-brand business is overwhelmingly concentrated in men’s clothing, which accounts for 95% of its branded turnover, with kids’ wear and accessories making up the remaining 5%. - **No e-commerce push yet** - the company has stated it has no recent plans to sell online, so its own brands likely reach customers through wholesale, retail, or export channels rather than direct-to-consumer digital storefronts. - **Export presence exists but is modest** - the company recorded foreign exchange earnings in FY23, indicating some international sales, though the domestic market remains the primary focus. - **The strategy is self-funding** - the company explicitly describes its approach as using input-service revenue to keep the business funded while it simultaneously builds its own brands, a deliberate sequencing that avoids betting the factory on an unproven label. ## 3. Fabric and garment product range: the catalogue that fills the factory **The company produces a wide spread of fabrics and garment types - from cotton-Lycra blends to formal trousers - giving it the flexibility to serve multiple customer segments from the same machines.** - **Fabrics span natural and blended** - the weaving unit produces greige fabrics in 100% cotton (including premium varieties like Giza and Supima), cotton-Lycra, polyester-cotton, polyester-viscose, and mock linen, covering both everyday and higher-grade shirting and suiting materials. - **Garments cover the men’s wardrobe** - the stitching unit makes formal shirts, cotton shirts, formal trousers, cotton trousers, joggers, shorts, pyjamas, and Bermudas for men and women, a range broad enough to supply a typical apparel brand’s core assortment. - **Capacity is balanced toward fabric** - the plant can produce 500,000 meters of fabric per month against 150,000 pieces of readymade garments, a ratio that reflects the reality that much of the fabric is sold as cloth rather than converted into stitched product.