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JM Financial vehicle, Think Investments lead funding in BRFL Textiles
Photo Credit: Pixabay

BRFL Textiles Pvt Ltd (BTPL) has raised Rs 240 crore ($32 million) in an equity round of funding led by JM Financial India Fund II and US-based Think Investments.

VCCircle was the first to report in December last year that the Mumbai-based firm is in discussions with the two investors to raise the funding.

Bombay Rayon Fashions Limited had carved out BTPL earlier last year to house its factory in Tarapur, Maharashtra. 

BTPL currently houses brands such as Bombay Rayon, BRFL, Linen Vogue, Giza Classe, Dickens & Browne and others.

“BTPL is augmenting its talent pool by hiring senior professionals and spending on maintenance capex to ensure full utilisation of its 400,000 meters per day capacity,” said Prashant Agarwal, MD at BTPL. 

BTPL has a strong presence in the B2B and B2C space along with long-standing relations with leading brands across the globe. 

The Tarapur plant is a multi-fibre fabric processing unit. With its annual processing capacity of 400,000 metres per day, the plant is the largest single-roof fabric processing unit in India. It also has a captive yarn dyeing unit with an annual capacity of 10.6 million kg.

Darius Pandole, CEO at PE and equity AIFs at JM Financial Ltd, said that the current transaction is the sixth investment by the second fund, and is in line with its stated strategy of investing in growth companies in the mid-market space.

The Tarapur factory earned revenue of Rs 372.77 crore for the year through March 2020. This is three-fourths of Bombay Rayon Fashions’ total revenue.

Bombay Rayon Fashions’ outstanding secured and unsecured debt was around Rs 5,100 crore at the end of March. The company owed banks about Rs 4,270.18 crore at the end of March. Of this, JM Financial ARC has taken over nearly 85% from other lenders, as per the company’s annual report for 2019-20.

Bombay Rayon Fashions’ other lenders were Axis Bank, Indian Bank and Punjab National Bank. Over the past year, the firm has restructured its debt from Indian Overseas Bank, IDBI Bank, Corporation Bank, Union Bank of India and Rajaram Bapu Sahakari Bank through a one-time settlement process.

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