Arvind has demerged three entities encompassing textiles, branded apparel and heavy engineering. The two new entities are: Arvind Fashions and Anup Engineering. Arvind Fashions will comprise company’s branded apparels business. Anup Engineering will handle the engineering business.
Arvind Fashions and Anup Engineering will be listed separately on the stock exchanges and will chart their own journey in the future. All the shareholders will continue to enjoy proportionate ownership in all three entities. The demerger will allow each business to have a sharper focus on developing their own aggressive growth models, on making their own capital allocation decisions and on incentivising their teams.
After the demerger is complete, Arvind will continue to retain its Rs 6,000 crore textile business, while continuing to incubate several young businesses and drive them towards realising their potential. These young businesses are the wastewater treatment business Arvind Envisol, the technical textiles business, the digital business Arvind Internet and the telecom ventures Syntel and Arya Omnitalk.
Arvind has an annual production capacity of more than 100 million meters of denim, 132 million meters in woven fabric, 10,000 tons of knit fabric and 48,000 meters of voile. The group has built a strong portfolio of brands that straddles consumer segments across the income pyramid.