Arvind targets Rs 10,000 cr revenue from textiles business

Arvind Ltd, the country’s largest denim maker, plans to invest around Rs 1,500 crore over the next three-four years and transform the textiles business by investing in garment manufacturing facilities, advanced processing and technology-driven innovation to unlock value from its fastest growing lifestyle division by spinning off its branded apparel and engineering businesses into separate companies.

Kulin S Lalbhai, director of Arvind group, said that the company is confident that the textiles business will clock revenues of Rs 10,000 crore over the next five-six years, riding on an improvement in textile revenue growth from 4-5% per annum at present to 10-12%, It also expects the online business to contribute more than 20% of sales in future.

The company have decided to spin off our branded apparel and engineering business into separate companies to focus on their core textiles business. The branded apparel business clocked revenues of Rs40.72 crore, while the engineering business posted a revenue of about Rs.5 lakh.

The branded apparel business will be demerged into Arvind Fashions and the engineering business into Anup Engineering. On completion of the process, both the companies will be listed on the BSE. Going forward, the company will have three main verticals — Arvind Fashions, which will focus on branded apparel and accessory; Arvind Ltd will focus on leading fabrics and apparel suppliers to world’s top brands like Zara and H&M; and Anup Engineering will focus on critical process equipment manufacturing.

This demerger frees up their resources and allows them to renew their focus on textiles businesses. As it is not too far when customers will not require to buy separate Fitbit or clothes that will keep 3-degree warmer or cooler. All these innovations are in the process. Arvind has tied up with international brands such as Gap, US Polo Association, Nautica, Gnat, Calvin Klein and Sephora, among others.

The company has already tied up with around 6-8 brands in the last few years. Right now, their focus is to scale up these businesses over the next couple of years rather than getting more brands into the kitty. Going forward, the future of fashion and brands will change as innovation will drive the businesses with advanced technology.