R&B Denims plans major expansion, modernisation

Textile company R&B Denims has announced done major expansion in with new Air jet Looms – Dobby Machines. 

The company in an exchange filing said that it has started to manufacture the prominent luxury level of Denim Fabric with Width of 85 inches. It is expected that the company will generate good margins from the current operating margins with this technology. 

At present, the company's clients include major brands such as Arvind, Killer, Lifestyle, Reliance Retail, etc. 

By adopting this new technology, the company said that it will be able to gain an advantage over its competitors, as it is not available to many Denim Manufacturers, which will provide the company with an advantage in serving both domestic as well as international consumers.

The company had delivered steady performance in Q2FY23. Revenues from continuing operations stood at Rs 14711.5 lakhs, EBITDA at Rs 2337.32 lakhs. Profit after Tax from continuing business was Rs 1240.60 lakhs.

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Despite of the decrease in revenue from Q1, the company maintained profits by focusing on cost reduction, flexible working capital management and improving productivity and efficiencies. 

The company said that it expects to grow despite a challenging environment, as a result of its robust business model and its strategic ability to navigate through challenging times. The Denim Market is both impacted by domestic and export issues. Denim products are attracting more and more people regardless of age and gender and it is anticipated that the denim industry will grow at a rapid pace in the near future.

The company said that it is imperative to invest in Research and Development to maintain its competitive advantage and consistently deliver value to stakeholders in order to enhance technological advancements and quality improvement.

With the new machine installations, the company is expecting a significant increase in revenue and profitability in Q4 as a result of these installations.

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