R&B Denims Limited, a vertically integrated denim manufacturer headquartered in Surat, Gujarat, has committed Rs 25 crore to polyester yarn production through its subsidiary Ricon Industries, which has begun commercial manufacturing at a facility in the same city.

The company confirmed the start of commercial output at the Ricon Industries plant in Surat. The Rs 25 crore covers the initial phase of the project, funding modifications to the facility, machinery and manpower, according to the company's announcement.

The move extends R&B Denims' vertical integration upstream from denim fabric into synthetic yarn. For the Surat-based manufacturer, in-house polyester yarn supply shortens the input chain for its denim operations and reduces exposure to external yarn price movements.

Ricon Industries will supply polyester yarn to R&B Denims' denim production, giving the parent company direct control over a key raw material input. The initial-phase investment of Rs 25 crore covers plant modifications, machinery and manpower, the company stated.

The announcement did not specify the facility's yarn capacity, the machinery configuration installed, or a timeline for any subsequent investment phases. R&B Denims did not disclose projected revenue from the yarn unit or the share of its polyester yarn requirement that Ricon Industries will absorb internally.

The company has not stated whether output beyond its own needs will be sold to external buyers in the Surat textile cluster, where polyester yarn supply is concentrated among established producers.

The project marks R&B Denims' first move into yarn manufacturing through Ricon Industries, which was set up as the yarn-producing subsidiary for the group's denim operations.

The company did not disclose when it expects the yarn unit to reach full utilisation or how the Rs 25 crore initial phase relates to the project's total planned investment.