R&B Denims Limited has announced that its subsidiary, Ricon Industries, has officially commenced commercial manufacturing of polyester yarn at its facility in Surat, Gujarat. Backed by an investment of ₹25 crore, this development serves as a key strategic forward integration step for the textile group.
Ricon Industries has enhanced its capability from pure cotton yarn manufacturing to producing specialized polyester yarn. The group shifts up the value chain from standard denim fabrics to manufacturing value-added garments like stretch-denim jeans and jackets.
The commercial production of polyester yarn at Ricon Industries’ Surat facility commenced on September 30, 2026. The ₹25 crore initial capital outlay covered major modifications in machinery, manpower, and infrastructure. The move provides raw material security and structural cost optimization for R&B Denims’ blended fabric divisions.
By setting up captive polyester yarn capacity, R&B Denims is optimizing its input matrix. The domestic shift towards stretch and blended denim (cotton-polyester-spandex mixes) makes backward/forward integration critical. Captive manufacturing should insulate the group from third-party yarn margin markups, although profitability will ultimately hinge on capacity utilization rates during the ramp-up phase.
The commencement of commercial polyester yarn production unlocks forward integration efficiencies. The strategic ₹25 crore investment targets higher-margin blended textiles, which can support operational profitability relative to FY26 consolidated revenue of ₹465.9 crore.
The Indian textile industry is seeing a notable trend towards synthetic-blended denim due to demand for fast-fashion, durability, and cost-efficiency. Integrated facilities located in textile hubs like Surat maintain a robust geographical and logistical advantage in serving both domestic and international markets.
