Active Clothing Co diversifies into a D2C model with new multi-brand retail platform
13 May 2026, Mumbai
Active Clothing Co is diversifying from its foundational manufacturing base to a direct-to-consumer model with the launch of a multi-brand retail platform, ‘Nuemo.’ This platform is designed to capture the burgeoning demand within India’s Tier II and Tier III markets, which are increasingly serving as the primary engines for apparel growth. By establishing a technology-driven ecosystem, the company intends to integrate men’s, women’s, and children’s wear under a singular retail umbrella, offering both flexible store formats and category-specific outlets to cater to localized consumer demographics.
Revenue projections and capital allocation for expansion
The management has outlined a target to achieve a topline of Rs 200–250 crore from the Nuemo venture within the next four years. This ambitious trajectory is supported by a recent capital infusion of Rs 23 crore through the issuance of convertible warrants to promoters and non-promoters, specifically earmarked for working capital and retail scaling. Despite a volatile fiscal environment - evidenced by a 3.45 per cent Y-o-Y revenue contraction in Q3 FY26 - the company maintained operational discipline, securing a net profit of Rs 3.50 crore and expanding its PAT margin to 3.63 per cent.
Market dynamics and the competitive athleisure landscape
The initiative arrives as the Indian activewear market matures toward a projected valuation of $41.2 million by 2033. Active Clothing Co. is leveraging its existing 3-million-piece annual knitwear capacity to mitigate supply chain risks. However, the transition into retail presents distinct challenges, including heightened competition from established domestic labels and the necessity for high asset turnover. To remain competitive, the company is integrating advanced computerized knitting technologies from Stoll and Shima Seiki, ensuring product innovation remains central to its retail identity.
Active Clothing Co. is an integrated apparel manufacturer providing end-to-end design and sourcing for global brands like Levi’s and Pepe Jeans. Operating primarily in the knitwear and outerwear segments, the firm is currently expanding its footprint into direct retail via NUEMO. With a market capitalization of approximately Rs 174 crore, it maintains a robust manufacturing infrastructure in Mohali, Punjab.
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