Arvind to raise garment output with Rs 1,500 crore capital Infusion
Search Business Opportunities
Jun, 07 2018

Arvind to raise garment output with Rs 1,500 crore capital Infusion

The expansion is part of a mega global trend of selling garments directly to a brand as a full packaged solution rather than selling to an intermediary who converts and then sells to a brand.

The makers of Arrow and US Polo Association apparel in India, Arvind has decided to invest Rs 1,500 crore in three years to increase its garment-making capacity from fabric by six-fold to meet the rising demand for branded apparel and fashion garments, a senior executive said. “Today, we convert only 10% of our fabrics into our garments… we are taking that to 60%,’’ said Kulin Lalbhai, executive director, Arvind.

He also asserted that the new capacity will add between 30,000 and 40,000 jobs. The expansion is part of a mega global trend of selling garments directly to a brand as a full packaged solution rather than selling to an intermediary who converts and then sells to a brand. “Now that fast fashion is taking over and supply chains need to become faster, creating what we call full-packaged solution, which is you’re selling a garment directly to a brand that’s the mega trend in the world,’’ said Lalbhai. “India will build that last-mile more and more, and that’s where Arvind is focused on.’’

The company will open large factories in Gujarat, Karnataka, Jharkhand and Andhra Pradesh which can employ 10,000 workers. The exercise is part of a target of doubling India’s largest denim maker’s textile turnover by 2022 from `6,000 crore at present. Denim constitutes around Rs 2,500 crore to the total turnover. The company will use cash flows to fund Arvind Fashions for many years to expand the fabric-to-garment conversion capacity.

“Now, with Arvind Fashions being separately listed, the Rs 1,500 crore of free cash flow that will get generated by Arvind will be invested in all of these exciting new areas in textiles, technical textiles, and emerging businesses,’’ said Lalbhai. After incubating fashion apparel brands and real estate from the cash flow of the textile business, the Ahmedabad-based company is restructuring its many businesses into four listed entities.

The parent Arvind will comprise the Rs 6,000-crore textile business and some other incubation businesses such as water, digital, telecom, advanced materials and technical textiles, while the entire consumer business, which is called Arvind Fashions, will be a Rs 4000-crore business which will be independently listed. The third one is a small, exciting engineering business which is being spun off and christened Anup Engineering, and the fourth one is Arvind SmartSpaces, a listed real estate developer.

Lalbhai said that any foreign investments in Indian online firms will improve the health of the sector and ensure the potential of the digital space. He was referring to the investment of global retail chain Walmart in India’s largest online retailer Flipkart.

Comment
Related opportunities
  • Casual dine Restaurants
    About: “Farmer & Sons" aspires to expand its presence as the..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 0
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Competitive Exam Coaching Institute
    Career Power - The best opportunity you have to become..
    Locations looking for expansion New Delhi
    Establishment year 2010
    Franchising Launch Date 2014
    Investment size Rs. 10lac - 20lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
  • Others Food Service
    About Us: Barista is pioneer in coffee culture in indiastarted in..
    Locations looking for expansion Delhi
    Establishment year 2000
    Franchising Launch Date 2014
    Investment size Rs. 30lac - 50lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Competitive Exam Coaching Institute
    About Us: CAD DESK is a leading training network of India..
    Locations looking for expansion Delhi
    Establishment year 2007
    Franchising Launch Date 2007
    Investment size Rs. 10lac - 20lac
    Space required 700
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities