Arvind eyes ~10 bn revenue in 4-5 years

After manufacturing, selling fashion concepts and supplying material to global fashion brands like Tommy Hilfiger, Gap, USPA and several others, Arvind Ltd is looking at building its own brand under the Arvind umbrella.

With this, the company is targeting to ramp up its revenue from its own brand, from the current ~4 billion to ~10 billion, over the next 4-5 years.

According to Susheel Kaul, CEO of Lifestyle fabrics for the knits and wovens division, the key driver will be fabrics as well as the ready-to-wear segment, which it introduced just a couple of months ago.

“The mother brand Arvind should be charting a strategy for the firm as far as own brand revenues are concerned,” Kaul said. The textiles division, which makes denims, knits and wovens and women’s-wear, accounts for ~60 billion revenue, contributing nearly 55 per cent to the consolidated turnover. Revenue from textiles division is expected to touch ~100 billion in the next 4-5 years.

The second component for boosting revenues from the textiles division would be increasing use of its “own fabric”, particularly for export to the US, Europe and the Far East, to directly boost its margins.

Under the current scenario, global brands like Gap, CK, Nautica and several others procure material from Arvind and send it to thirdparty contract manufacturers in India, Bangladesh, Vietnam and other locations.

However, Kaul is in talks with global brands that have expressed interest to procure the finished product directly from Arvind instead of routing the fabric to other manufacturing units elsewhere.