It is hereby informed that the company has enhanced the scope of existing business by entering into the "garmenting segment" and has commenced the commercial production of the aforesaid ....
RNBDENIMS · price
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R&B Denims Ltd has expanded its business scope by entering the garmenting segment, focusing on manufacturing finished denim products like jeans, jackets, and other apparel. Commercial production began on 10th April 2025 at its existing facility in Surat, Gujarat. This is a forward integration move, taking the company up the value chain from denim fabric manufacturing to finished garments. The company has made an initial investment of around Rs. 1.25 crores for machinery, skilled manpower, and infrastructure modifications. Further investments will be made in phases using internal accruals and/or debt. The company expects benefits such as better margins through vertical integration, access to export markets, potential D2C expansion, and reduced dependence on volatile fabric markets.
This diversification into higher-value garment manufacturing could improve profitability and revenue stability for shareholders over time, though initial contribution will be small given the modest Rs. 1.25 crore investment. The stock may see a positive reaction as the move signals growth ambitions, but investors should watch for actual revenue contribution from the new segment in upcoming quarters.