Comments
Arvind Ltd is planning to invest Rs 500 crore per annum for the next 4-5 years with an aim to double its revenue from its textiles business to Rs 12,000 crore. The company is in the process of de-merging its brands and engineering businesses into separate entities.
“In the last 5-6 years, we have not put much capital in the textiles business. We are very excited about textiles..we see tremendous growth opportunities... This capex will take the business from a single-digit growth rate at present into double-digit growth rate.
“We are planning to double our textile business from Rs 6,000 crore to Rs 12,000 crore in 5 years time. We plan to invest Rs 500 crore every year for the next five years to expand its textiles business,” Arvind Ltd Executive Director, Kulin Lalbhai, told PTI.
The company will fund the expansion from internal cash flows. “We are looking at dramatic ramp up in garmenting (making garments from fabrics) from 10 per cent at present to 50 per cent over time. A big chunk of this planned investment will be for garmenting,’’ he added.
The company is also looking at developing three large garment clusters in Jharkhand, Andhra Pradesh and Gujarat. Each of these clusters will employ 4,000-8,000 workers. It already has a cluster operational at Ethiopia in Africa, which the company uses to reach out to America and European markets.
“All of these clusters are in execution mode. By the end of the third quarter or the beginning of fourth quarter, we will begin work in Jharkhand and Gujarat. Cluster in Andhra Pradesh will take a few more quarters to be operational. These clusters will be like a global supply chain,” Lalbhai said.
Arvind Ltd is also planning to foray into performance and functional clothing (active wear) and synthetics. It is also considering scaling up its technical textiles businesses.
Kulin Lalbhai said the de-merger process, after which all the three businesses will be listed separately, will be complete by the end of the third quarter of this fiscal.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.