- Meenakshi Kumar |
In five years, all of Arvind’s textile production will be outsourced and the focus will be on garments. Garmenting manufacturing will be increased in phases, from 10 per cent as of now to 30 or 40 per cent. The aim is to emerge as a major apparel brand across price points. Arvind intends to employ at least 5000 to 8000 women each in facilities in Jharkhand and Gujarat to produce apparel.
Arvind’s new facilities in Ethiopia would focus on garmenting and offer duty-free access to European markets. This value addition will help Arvind become a one-stop shop. Running concurrent is Arvind’s desire to shift from cotton to manmade fiber, which is cheaper, more functional and dominant in the sportswear and athleisure segments that are the fastest growing in the garment industry.
From traditional textile businesses, Arvind will move to being a technology company led by intellectual property rights, designs and strategic relations with customers. The ROCE is expected to grow from the current ten per cent to 18 per cent by financial year 2022-23. A pruning of the brand portfolio is likely. Arvind retails some 20 foreign brands in India.