Home / Knowledge / News / Textiles / Bombay Rayon Fashions: In the grip of a European slowdown
Bombay Rayon Fashions: In the grip of a European slowdown
Nov '13
Hit by slowdown in Europe and rising input costs, the Mumbai-based vertically integrated textile company Bombay Rayon Fashions Ltd (BRFL) continues to post losses while slowly going up the learning curve.

For the quarter ended September 30, 2013, the company posted a net loss of Rs 104.85 crore as against the net profit of Rs 43.58 crore in the corresponding quarter of previous fiscal. The loss, however, narrowed significantly from Rs 411.75 crore reported in the preceding quarter ended June 30, 2013.

Net sales of the company fell 4 per cent to Rs 685.75 crore in Q2 FY’14 from Rs 714.34 crore in Q2 FY’13. Piling debt burden following acquisitions in last few years also continues to weigh upon BRFL’s bottom-line. Acquisition of UK-based DPJ Clothing in 2007 and STI India Ltd in 2010 has left the company with a debt burden of over Rs 4,100 crore.

Stubborn losses at the company’s wholly owned subsidiary BRFL Italia Srl, Italy, have also hit the bottom-line of the company. Due to economic slowdown in Europe and rising costs, BRFL Italia has been shutting down its loss making stores and is in the process of rationalizing the business.

BRFL Italia had posted a loss of Rs 50.82 crore in the fiscal year 2012-13. Other subsidiaries of the company like DPJ Clothing and BRFL Europe B.V.—both based out of Euro area—reported losses of Rs 2.33 crore and Rs 5.63 lakh respectively in FY’13.

In its investors’ presentation released at the end of March 2013, the company had said, “Due to time required in building efficiency amongst the workers, it was not possible to improve the garment manufacturing capacity utilization immediately.”

The company had also said that it is slowly going up the learning curve and will increase the capacity utilization substantially over the next three years. 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search