Arvind to pass on excise benefit to customers

The FM, in his Budget speech, announced zero

excise duty on cotton textiles at fibre, yarn fabric and garment stage. Now the question everyone wants an answer to is, whether companies would start passing on the excise benefit to customers. Finally, one of the leading companies in textile and apparel space, Arvind Mills has said that it would pass on the benefit to customers.

In fact, the entire apparel industry was waiting for this measure from this year’s budget and they are in a relieve after facing tackling excise duty followed by a slow economy, low consumer sentiment and high raw material costs. Arvind expects the step to dramatically change the scenario for branded and retail apparels.

No wonder, brands and retailers would take advantage of this opportunity to increase demand. And though it would not be beneficial for them per say, it will bring a dramatic growth on companies’ top line. Arvind also welcomed the move to continue the technology upgradation fund scheme in the 12th plan as well as the allotment of Rs 2,400 crores for tech upgradation.

The company has recently inked a deal with Hanes, an active player in undergarment segments, where Arvind didn’t have a presence so far. Moreover, their deal with Ed Hardy would further help them increase and reinforce a strong position in the youth segment.