Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

Arvind focuses on growth with newer businesses, demerger

Arvind focuses on growth with newer businessesOne of India’s biggest textile makers Arvind, which successfully demerged its business in November 2018, now plans to focus on technical textiles along with other businesses such as water and wastewater treatment as well as garment production for international players. The branded retail arm of the company, which includes brands like Arrow, GAP, Tommy Hilfiger and Flying Machine has been hived off as Arvind Fashions while the much smaller engineering arm is now known as Anup Engineering. Branded retail has over 60 per cent of the value of the original company.

New garment making model to be introduced

The textiles business generates around 80 per cent of the group’s total Arvind focuses on growth with newer businesses demergeroperating profits. Many parts of the business, like denim for example, have fully depreciated machinery and a virtually negative working capital — as they also buy material on credit. As these businesses tie-up with third parties for basic weaving and dying, they offer a high returns on capital employed.

With textiles, Arvind plans to ramp up labor-intensive garment production business of the company. It plans to introduce a new model at its garment making units in Jharkhand’s capital Ranchi and in Bavla in Gujarat by providing dormitories for women, especially from tribal regions. The workers are also imparted skill training or college education, and are expected to complete the training in four years.

Also on the anvil are plans to increase its Bavla workforce to 12,000 from 1,500 and Ranchi to 7,500 from 2,000. The company’s, which benefits from payroll incentives of these state governments, plans to employ over 80 per cent women in both locations.

Focus on capital returns

Arvind also offers fabric research and development, and production, solutions. The company has invested in Ethiopia unit to leverage the tax advantage offered to Europe.

The demerge focuses more on return on capital employed (ROCE) and less on the earnings before interest, tax, depreciation and amortisation (EBITDA), as the textile business is now moving towards an asset-lite model and, therefore, capital investments would be less. The two businesses that were moved out of Arvind — Anup Engineering and Arvind Fashions — were listed in early March. The combined market capital of these two companies inched up to Rs 8,989 crore on March 29, 11 per cent more than its pre-demerger value in November. Their main focus now should be to cross Rs 10,000 crore in market capitalisation

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Myriad Activewear: Innovations, new product categories to pep up growth

Myriad Activewear: Innovations, new product categories to pep up growth

“The market should grow as fitness fad is taking over to find that sweet spot in fashion and fitness,” says Sunishka Goenka, Creative Director and Founder of athleisurewear brand Myriad... Read more

Etailer Zapyle makes luxury clothing affordable

Etailer Zapyle makes luxury clothing affordable

As competition in Indian e-commerce market heats up, Zapyle, joins online players Myntra, Jabong, Koovs, Limeroad to offer personalised service experience to its customers. The e-tailer plans to make luxury... Read more

More and more Indian fashion brands take to GOTS certified textiles

More and more Indian fashion brands take to GOTS certified textiles

Actively engaged in educating and encouraging the use of certified organic clothing in India, international eco-label Global Organic Textile Standard (GOTS) is the stringent voluntary global standard for the entire... Read more

Patanjali Paridhan makes aggressive expansion plans

Patanjali Paridhan makes aggressive expansion plans

Homegrown apparel brand Patanjali Paridhan, backed by yoga guru cum entrepreneur Baba Ramdev aims to integrate technology and fashion together, to offer globally competitive merchandise at affordable rates. The brand,... Read more

Organic cotton brand Satva Living to add a core range and menswear collection

Organic cotton brand Satva Living to add a core range and menswear collection

Representing a satvic life, the spring/summer collection of Satva Living is inspired by the crystals and minerals that draw out negativity from body and soul, and allow positive energy to... Read more

Tantra brings a new range of t shirts for babies

Tantra brings a new range of t shirts for babies

Rajiv Ramchandani, Director of the T-Shirt brand Tantra believes that the T-shirts segment in India offers non-stop scope for creativity. “The segment, with its various sub-categories and age-wise demarcations, is... Read more

Indian retail may triple in size

Indian retail may triple in size

The Indian retail market is expected to triple in size by fiscal ’25. Food and grocery and the apparel segments are likely to witness a compound annual growth rate of... Read more

Online to offline paves the way for omnichannel retail in India

Online to offline paves the way for omnichannel retail in India

E-retailers are becoming increasingly aware of the importance of offline activities to attract new or re-engaging existing consumers. A recent study indicated around 95 per cent of retail sales are... Read more

Reliance takes small stakes for a larger goal in India’s ecom space

Reliance takes small stakes for a larger goal in India’s ecom space

The e-commerce market is heating up with a new competitor ready to challenge the supremacy of the Amazon. Reliance Industries owner Mukesh Ambani is piecing together a $2.5 billion strategy... Read more

Steady ad and marketing investment to fuel growth of branded apparel segment

Steady ad and marketing investment to fuel growth of branded apparel segment

Fuelled by the festive season, branded apparel makers reported a steady increase in profit margins in the December quarter. As per Wazir Advisors, Aditya Birla Fashion & Lifestyle reported a... Read more

MOST POPULAR NEWS
Go to top