Indian apparel and textile company Arvind Limited is aiming to increase its textile business from current Rs. 6,000 crores to Rs. 10,000 crores with an investment of around Rs. 1,500 crores.
The investment will be majorly used for capacity expansion and the establishment of new manufacturing facilities. The investment is likely to be injected by the textile conglomerate over next three to five years, reportedly stated a top official of the company.
“Athleisure will be a major focus area for it (investment) in view of the significant opportunities in the area,” Aamir Akhtar, CEO Lifestyle Fabrics – Denim, Arvind Ltd. was quoted as saying in news report.
Arvind Ltd., which is also in the process of demerging its branded apparel and engineering businesses, is expecting to continue its CAGR growth of 16 per cent and above in the time to come.
The country’s leading denim manufacturer even inked MoUs recently with Andhra Pradesh, Gujarat and Jharkhand, to set up apparel manufacturing facilities in these states.
The textile major is also considering verticalisation as denim has been contributing the major chunk at present to the overall revenue. Arvind, operating in denim, knits & wovens and voiles textiles segments, is further planning to list its branded apparel business, Arvind Fashions, as a separate entity.
Markedly, the textile major recently reported a revenue of Rs. 2,706 crores in the third quarter of the fiscal. The conglomerate is now optimistic to continue the growth trend in the next quarter as well.
In another development, exclusive denim collection named ‘GRAVITY’ was showcased by the denim manufacturer at its annual event called Arvind FESTIVE 2018 on March 19, 2018. Chrome Cord, Hybrid Chinos, E-Indigo, Boomerang Bounce and Boomerang 360 were also launched during the event. These are futuristic denim technology brands.