Arvind to set up new mills
Arvind’s textile division, which crafts denims, knits, wovens and women’s wear, contributes nearly 55 per cent to the group’s consolidated turnover. Under the mother brand, Arvind has ready-to-wear and fabrics. The key growth driver for the company will come from fabrics as well as the ready-to-wear segment. The company has earmarked investments over the next couple of years, involving the setting up of new mills, advertising and branding expenses and others. The investment will be borne by the company from its daily cash flow. It is also looking at setting up manufacturing units in Andhra Pradesh, Gujarat and other places. The second component which will boost revenues from the textile division is increasing the use of its own fabric, particularly for export markets in the US, Europe and Far East, which will directly boost its margins. Under the current scenario, global brands like Gap, CK, Nautica and several others procure clothing material from Arvind and send it to third-party contract manufacturers in India, Bangladesh, Vietnam and other locations.