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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 277.31 | ACUITE BBB | Stable | Reaffirmed | - |
| Bank Loan Ratings | 28.00 | - | ACUITE A3+ | Reaffirmed |
| Total Outstanding | 305.31 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) and short term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs 305.31 Cr. bank facilities of GBTL Limited. The outlook is ‘Stable’.
Rationale for rating The rating reaffirmation reflects the group’s sound business risk profile, supported by a diversified product portfolio, long-standing industry presence, experienced management, and an extensive distribution network. The group's operating performance improved in FY25 supported by steady expansion in its core business & launch of linen segment in Q4FY2025 in Donear Industries Limited along with the commissioning of a new spinning unit at Guntur, Andhra Pradesh, under GBTL. However, the group witnessed moderation in OCM Private Limited, where lower demand in the polywool yarn segment and temporary quality-related issues adversely impacted volumes. Further, profitability moderated due to higher advertising and promotional expenses, including increased marketing spends and commission-linked selling costs in both DIL and GBTL. Additionally, the decline in revenue at OCM exerted further pressure on the group’s overall operating margins. The rating further draws comfort from the group’s moderate financial risk profile, marked by consistent improvement in net worth, comfortable gearing levels, moderate debt-protection metrics, and strong cash-accrual generation. These strengths, however, are partially offset by the group’s working-capital-intensive operations and intense competition in branded textile and apparel industry, characterised by the presence of several established domestic and international players. |
| About the Company |
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GBTL Limited, incorporated in 2007 was a wholly owned subsidiary of Grasim Industries Limited, is engaged in the manufacturing of men’s polyester-viscose (PV) suiting fabrics. Formerly known as Grasim Bhiwani Textile Limited, the company was acquired in July 2017 by Rajendra Synthetics LLP, a promoter-owned entity of Donear Industries Limited, under a close-ended transaction through which Grasim divested its entire stake. The company is engaged in manufacturing of men’s wear polyester viscose fabric. GBTL markets its products under well-established brands such as ‘Grasim’ and ‘Graviera’, and supplies fabrics to several reputed domestic and international brands. The company’s headquartered is in Amritsar.
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| About the Group |
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OCM Private Limited, incorporated in 1922, is an Amritsar-origin company. The company was earlier part of the S.K. Birla Group (Birla VXL) and now majority owned by GR & SM Industries LLP, a promoter entity of Donear Industries Limited, holding 93.95 percent shareholding. It is engaged in the manufacturing of woollen and wool-blended worsted fabrics used for men’s formal and leisurewear, including suits, jackets, shirts, and trousers. The company’s manufacturing operations is located at Ambala, Haryana. OCM markets its products under brands such as ‘GRADO’, ‘FERRARA’, ‘OCM–Gold Collection’, ‘OCM– Style’, and ‘Siena’.
Donear Industries Limited (DIL), originally incorporated in 1987 as Maniyar India Limited, was acquired by the Mumbai-based Agarwal family in 1989 and subsequently renamed in 1993. DIL is engaged in the manufacturing of synthetic, cotton, and blended fabrics, primarily catering to the suiting, shirting, and trouser segments. The company operates two polyester-viscose (PV) weaving units in Silvassa, one cotton fabric manufacturing unit in Surat, and a packing facility in Bengaluru, enabling a diversified and integrated manufacturing setup. DIL predominantly serves Tier-2 to Tier-6 markets through established brands such as Donear Suitings & Shirtings, Donear Royal Classico, and Donear Soft and Smooth, among others. In addition, the company is engaged in the fashion apparel and accessories segment under the ‘D’COT Style Wear’ brand, introduced in 2007, which enhances its presence in the value-retail apparel space. |
| Unsupported Rating |
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Not applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has consolidated business and financial risk profile of OCM Private Limited (OCM), standalone financials of GBTL Limited (erstwhile, Grasim Bhiwani Textile Limited) and standalone financials of Donear Industries Limited (DIL) together referred to as the 'Donear Group' (DG). The consolidation is in view of common ownership, operational linkages between these three companies and support from Donear Industries Limited to OCM and GBTL as and when required.
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| Key Rating Drivers |
| Strengths |
| Established brand presence
The Donear Group (DG) benefits from a long operating history and an experienced promoter family. Founded by the late Mr. Vishwanath Agarwal, the group is now led by his sons, Mr. Rajendra Agarwal and Mr. Ajay Agarwal, who have over three decades of textile industry experience. The acquisitions of OCM and GBTL in FY2017–18 broadened DG’s product portfolio across premium to mid-market segments. OCM’s legacy since 1922 and GBTL’s brands such as Grasim and Graviera have strengthened DG’s presence in the suiting and shirting fabric segment. The unified premium brand GRADO has further enhanced DG’s positioning. DG continues to benefit from strong brand equity across its portfolio, including Donear Suitings & Shirtings, Royal Classico, Soft & Smooth, and OCM’s Ferrara and Siena. Its wide distribution network supports operational scale. DG has widespread distribution network of ~450 dealers stores along with 607 dealers and 122 agents under Donear and 15 retailers ,110 dealers , 13 agents and 5 dealers stores under GBTL. OCM limited sells through retail network of ~5455 retailers and 483 dealers.Acuité believes that post-acquisition synergies, strong brand visibility, and an extensive distribution network will support stable performance over the medium term. Diversified portfolio The DG continues to benefit from a diversified product portfolio across distinct market segments. OCM caters to the premium wool, tweed, and jacketing segment; GBTL focuses on premium poly-viscose suiting fabrics, while DIL operates in the mid-income segment through cotton and poly-viscose fabrics. This multi-entity structure enables the group to address both premium and mid-market demand across domestic and export geographies. Augmentation in scale of operations ; moderation in operating profitability The group’s consolidated revenue improved to Rs 1,597.24 Cr. in FY2025 from Rs 1,431.90 Cr. in FY2024 registering a growth of 11.55 percent. The improvement is supported by steady expansion in its core business & launch of linen segment in Q4FY2025 in Donear Industries Limited along with the commissioning of a new spinning unit at Guntur, Andhra Pradesh, under GBTL. However, the group witnessed moderation in OCM Private Limited, where lower demand in the polywool yarn segment and temporary quality-related issues adversely impacted volumes. The operating margin of the group has moderated to 9.52 percent in FY2025 from 12.28 percent in FY2024 due to higher in advertising and promotional expenses, including increased marketing spends and commission-linked selling costs in both DIL and GBTL. Additionally, the decline in revenue at OCM exerted further pressure on the group’s overall operating margins Acuité believes that the company’s ability to further scale up its operations and improve profitability margins will remain a key monitorable going forward despite supported by diversified product portfolio and revenue steam. Moderate financial risk profile The group’s financial risk profile remains moderate, supported by improving net worth, comfortable gearing and debt protection metrics. The adjusted tangible net worth of the group improved to Rs 637.18 Cr. as on March 31,2025 from Rs.575.96 Cr. as on March 31, 2024 driven by accretion of profits to reserves. The capital structure continues to remain comfortable despite higher borrowings in FY2025. Gearing stood at 1.13 times as on March 31,2025 (1.00 times as on March 31,2024). Debt-protection metrics, although moderated due to higher interest expenses, continue to remain adequate with interest coverage ratio at 2.98 times and debt service coverage ratio at 2.03 times as on March 31,2025 (3.77 times & 2.22 times as on March 31, 2024 respectively). Acuité expects the group to maintain a healthy financial risk profile over the medium term supported by its strong net worth position, stable earnings and the absence of any large debt-funded capex plans. |
| Weaknesses |
| Working capital intensive nature of operations
The group’s working capital requirements remains intensive as reflected by high gross current assets (GCA) of 272 days as on March 31,2025 (260 days as on March 31, 2024). The elongated GCA days is driven primarily by elevated inventory levels, moderate receivable days and sizeable portion of funds tied up in other current assets such as balances with government authorities, supplier advances, and loans and advances to related parties.Given the group’s wide product portfolio and the need to maintain inventory across franchise outlets, inventory holding remains inherently high Consequently, inventory days remained elevated at 153 days as on March 31,2025. The receivable cycle remained steady with debtors (less than one year outstanding) stood at 78 days as on March 31,2025. However, debtors outstanding more than 1 year has increased to Rs.30.43 Cr. as on March 31,2025 from Rs.20.72 Cr. as on March 31,2024. Of these as of February 2026, ~ Rs. 20.00 Cr. of these dues have been realised. The group follows a policy of creating provisions for doubtful receivables as and when required, which mitigates the risk associated with ageing debtors.Acuité believes that the group’s working capital cycle will remain elongated over the near to medium term, driven by structurally high inventory levels and moderate receivable days. The stretch in working capital intensity will remain a key monitorable. High competition from other reputed brands The group operates in a highly competitive industry marked by presence of several established brands like Raymonds, Siyaram, Digjam, among others. Branded fabrics and garments business requires continues innovation in design and product offerings to maintain its market relevance and competitive position. The group’s long-standing presence of over three decades, along with the strategic acquisitions of OCM and GBTL, strengthens its market footprint and is expected to mitigate competitive pressures to some extent.Nevertheless, the group shall be required to maintain consistent investments in brand building, marketing, and product innovation to preserve and enhance its market position. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The group’s liquidity remains adequate supported by steady net cash accruals of Rs.98.01 Cr. as on March 31, 2025 as against long term debt repayment obligation of Rs.17.00 Cr. during the year. Over the medium term, the company is expected to generate cash accrual in the range of Rs 90.00 Cr. to 116.00 Cr. as against its maturing repayment obligations in the range of ~Rs. 10.00 Cr to ~Rs 16.00 Cr. The liquidity profile is further supported by cash and bank balance of Rs 15.11 Cr. and a comfortable current ratio of 1.36 times as on March 31, 2025. Average working capital utilisation remained high at ~86.76% for the eleven months ended as on November 2025 reflecting working capital intensive nature of operations.
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| Outlook-Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 1597.24 | 1431.90 |
| PAT | Rs. Cr. | 66.64 | 90.85 |
| PAT Margin | (%) | 4.17 | 6.34 |
| Total Debt/Tangible Net Worth | Times | 1.13 | 1.00 |
| PBDIT/Interest | Times | 2.98 | 3.77 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any Other Information |
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None
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
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