Arvind to set up new mills

Apparel - - Market Watch -

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.

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