- Meenakshi Kumar |
Arvind is demerging its branded apparel and engineering businesses from the parent company. The branded apparel business will be demerged into Arvind Fashions and the engineering business will be demerged into another entity Anup Engineering and invest Rs 1,500 crore over the next three years to achieve double digit growth. The demerged entities will be listed on the bourses.
Arvind shareholders will get 1 share of Arvind Fashions for every 5 shares held in Arvind and will get 1 share of Anup Engineering for 27 held in Arvind. Demerger will help the specific companies to align their own objectives and help them raise resources independently. Each of the three businesses has attractive market opportunity and is well poised with solid independent momentum.
Meanwhile Arvind Group the country’s largest denim maker aims to generate revenue of Rs 10,000 crore over the next five-six years, riding on an improvement in textile revenue growth from 4-5 per cent per annum at present to 10-12 per cent. The company plans to invest around Rs 1,500 crore over the next three-four years and transform the textiles business by investing in garment manufacturing facilities, advanced processing and technology-driven innovation. It expects the online business to contribute more than 20 per cent of sales in future. Arvind, the flagship company, manufactures and sells about 300 million meters of fabrics and over 30 million pieces of ready-to-wear apparel. The textiles business aspires to reach a revenue of Rs 10,000 crore in the next 5-6 years period.
Arvind Fashions is the country's largest platform of branded apparel and accessories, growing as an important player in specialty retail. The company's own brands include Flying Machine, Colt, Ruggers and Excalibur, among others. Its licensed product brands include global names, such as Tommy Hilfiger, Calvin Klein, Arrow, Gant, Nautica, IZOD and US Polo.
Arvind reported a consolidated net profit of Rs 64.50 crore for the quarter ended September 30. The company had posted a net profit of Rs 76.65 crore during the same period previous fiscal. Total income during the quarter under review stood at Rs 2,654.03 crore, up from Rs 2,353.22 crore in the same period of 2016-17.