• Home
  • News
  • Retail
  • Arvind expects global brands to drive 70 percent of its sales

Arvind expects global brands to drive 70 percent of its sales

By Sujata Sachdeva

loading...

Scroll down to read more

Increasing its focus on brands and retail business, textile conglomerate Arvind anticipates 70 percent of total sales to come from the portfolio of international brands retailed under its fold. From around 60 percent at the moment, the contribution is expected to increase by 10 percent over the next couple of years.

Arvind Lifestyle Brands, a subsidy of Arvind has a franchise agreement with as many as 14 international brands, including Gap, Calvin Klein and Aeropostale, as well as 12 in-house brands. The company also plans to increase its store count to 1,350 by adding 300 new stores in next two years with an investment of around Rs 200 crores every year. The aim is to open at least 150 stores every year. Arvind is also betting big on expanding ecommerce presence of brands under its portfolio.

In terms of size, Arrow, US Polo and Flying Machine are its biggest brands, followed by Calvin Klein, Nautica and Hanes, which are fast picking up pace. For this fiscal year, the company projects growth estimate of 14-15 percent for its retail business with improvements in margins in the brands and retail segment. The company has been surely shifting focus towards brands and retail segment, whose contribution to topline increased from 22 percent in FY10 to 30 percent in FY15. It expects this to go to 35 percent in FY18.

Arvind