Subsidiary Ricon Industries commences commercial production of polyester yarn; ~Rs. 25 crores invested
Ricon Industries, a subsidiary of the company, has commenced commercial production of polyester yarn on September 30, 2026 at its unit in Dist Surat.
- Commercial production commencement date
- September 30, 2026
- Initial capital investment
- approximately Rs. 25 crores
- Investment coverage areas
- machinery, skilled manpower and infrastructure modifications
- Product type
- spun polyester yarn
- Location
- Block No. 372, NH-8, Moje Dhamdod, Tal. Mangarol, Dist Surat
What was announced
Ricon Industries, a subsidiary of R&B Denims Limited, has commenced commercial production of polyester yarn on September 30, 2026 at its existing unit at Block No. 372, NH-8, Moje Dhamdod, Tal. Mangarol, Dist Surat. This follows the corporate announcement made on September 01, 2026.
The strategy update
The company has updated its business strategy to undertake polyester yarn manufacturing, described as a value chain synchronisation initiative for its existing denim fabric manufacturing operations. The new line of business is specifically production of spun polyester yarn.
Benefits the company expects
- Greater control over sourcing and quality of yarn
- Improved supply-chain efficiencies and optimised input costs
- Complete quality control of yarn manufacturing
- Better utilisation of existing manufacturing infrastructure and human resources
- Diversification of revenue streams, reducing the impact of fabric market fluctuations
The company states the venture is aimed at enhancing its value proposition, improving profitability and ensuring long-term sustainability.
Money involved
Ricon Industries has invested approximately Rs. 25 crores as an initial capital outlay covering machinery, skilled manpower and infrastructure modifications. Further investments are proposed to be funded through a mix of internal accruals and/or debt, as may be appropriate. The company says it will scale operations in alignment with demand and capacity utilisation.
How to read it
This is a forward integration step into raw material manufacturing at a subsidiary level. Production has started; the financial contribution will depend on capacity utilisation and demand over coming periods.
More numbers
- Initial capital outlay by Ricon IndustriesRs. 25 crores
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