Arvind Ltd. now mulls 40 per cent in-house ap­parel man­u­fac­tur­ing

Stitch World - - NEWS TRACK -

In a se­ries of steps to bol­ster its busi­ness in In­dia, the ap­parel and tex­tile com­pany, Arvind Lim­ited, is now aim­ing to in­crease the use of its own fab­ric in mak­ing gar­ments in­ter­nally from the cur­rent 10 per cent to 40 per cent. This was re­port­edly re­vealed by Aamir Akhtar, Chief Ex­ec­u­tive – Den­ims, Arvind Lim­ited.

The move can be seen as a part of the tex­tile ma­jor’s strat­egy to am­plify its tex­tile busi­ness from cur­rent

Rs. 6,000 crore to Rs. 10,000 crore in the next five years. The tex­tile com­pany has al­ready an­nounced an in­vest­ment of around Rs. 1,500 crore, in a bid to achieve its busi­ness goals.

The coun­try’s lead­ing denim man­u­fac­turer has even started adding ca­pac­i­ties of 1 mil­lion me­tres per an­num and it spec­u­lates the pro­duc­tion of 1 mil­lion gar­ments in-house monthly in the next five years, in­formed Akhtar.

The tex­tile con­glom­er­ate cur­rently has 40 per cent mar­ket share in the or­ga­nized denim mar­ket and is grow­ing by 8-10 per cent an­nu­ally. With its plans in place, the com­pany now plans to make it to 15 per cent growth rate.

Ad­di­tion­ally, Arvind Lim­ited is also look­ing at ex­pand­ing its ca­pac­i­ties in its ex­ist­ing units and set­ting up new ones in the next few years. It has even inked MoUs re­cently with Andhra Pradesh, Gu­jarat and Jhark­hand, to set up ap­parel man­u­fac­tur­ing fa­cil­i­ties in th­ese states.

Markedly, the com­pany re­ported a rev­enue of Rs. 2,706 crore in the third quar­ter of the pre­vi­ous fis­cal and is op­ti­mistic to con­tinue the growth trend in the next quar­ter as well.

Last month, it also show­cased its ex­clu­sive denim col­lec­tion named ‘GRAV­ITY’ at its an­nual event called Arvind FES­TIVE 2018 where fu­tur­is­tic denim tech­nol­ogy brands, Chrome Cord, Hy­brid Chi­nos, E-In­digo, Boomerang Bounce and Boomerang 360, were also launched dur­ing the event.

Arvind Ltd., which is also in the process of de­merg­ing its branded ap­parel and en­gi­neer­ing busi­nesses, is ex­pect­ing to con­tinue its over­all CAGR growth of 16 per cent and above in the time to come.

Arvind Ltd. has inked MoUs with Andhra Pradesh, Gu­jarat and Jhark­hand to set up ap­parel man­u­fac­tur­ing fa­cil­i­ties

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