Arvind aims to be a Rs 2,000 cr entity by 2017-18

Textiles conglomerate Arvind has merged its retail subsidiary, Arvind Retail with the brands holding arm, Arvind Lifestyle Brands. In a mailer to its suppliers Arvind has said, “Arvind Retail is merged with Arvind Lifestyle Brands. With effect

from June 1, all invoices will be raised in the name of Arvind Lifestyle Brands.” As per Kulin Lalbhai, Executive Director, the two entities were two separate investment vehicles and they have been merged for operational efficiencies. “We don’t have any divestment plans in the short term” he said. Arvind Lifestyle Brands, which has brands such as Arrow and Ed Hardy, recorded revenue of Rs 796 crores in 2012-13.

Meanwhile Arvind now wants to expand beyond its traditional distribution model with a rapid roll-out of its new retail format 'The Arvind Store' and establish a stronger hold on the premium fabric market with its new brand 'Tresca'. Its aim is to build brand ‘Arvind' into Rs 2,000 crores entity by fiscal 2017-18. Arvind which is a premium fabric brand for both men and women fabrics clocked in revenues of Rs 500 crores in the last fiscal. The target is to make ‘The Arvind Store’ a Rs 600 crores franchise in five years. With a retail network of 100 ‘The Arvind Stores’ across India, they are now looking at increasing the format to over 400 stores in the next five years. The Arvind Store is a modern and futuristic layout to provide the best of Arvind merchandise under one roof.

Meanwhile the company has introduced its premium fabric offering 'Tresca' targetted at the high-end shirting and suiting market. The premium fabric market in India is a high growth one and Tresca aims to establish itself as a leading brand in this space. It will offer premium products, contemporary international design and a lifestyle positioning. Arvind aims to build Tresca into a Rs 250 crores brand over the next five years.

The Arvind Store aims to substitute the old and weary mom-&-pop channel with modern retail, which matches the aspirations of modern India. It widens the portfolio of products offered to attract the younger customer - casual fabrics, denim fabrics and Arvind Denim Lab - a new concept to Indian consumers. It plans to access a very large consumption market of more than 500 cities which can sustain this model.

Explaining the made to measure concept Lalbhai said, “Consumers today are evolved, they want to go beyond the conventional designs and patterns. They look forward to personalization and customization as a key tool to express their true emotions. Taking clue from these insights we have launched the made to measure denim fabrics though Arvind Denim Lab.” According to Lalbhai, there is greater brand awareness in smaller cities and hence Arvind looks forward extend its retail footprint to tier V cities as well. “Most of our retail stores shall be in beyond metros and in smaller cities as part of our growth strategy,” adds Lalbhai.

Tresca will be available at leading retail outlets and will be directly serviced by the company. It will showcase four collections a year with over 2,000 designs to choose from.