Arvind Ltd. is one of the leading integrated textile players in India with exposure to both textile and apparels segments. It is also one of the largest denim manufacturers in the world. The company plans to focus on its garment business to increase its margin.
Arvind is looking to increase the share of fabric sold as garments from 6 per cent now to 20 per cent in the next few years. Further with the expected growth in the Indian retail space, due to rising incomes, urbanization, attitudinal shifts, etc., will be the main trigger for expansion.
The company should be able to benefit from the growth in the retail sector. Since its garments segment holds several well-known foreign-licensed brands such as Arrow, Tommy Hilfiger, US Polo, Flying Machine, Calvin Klein, Nautica and Izod.
Moreover, with China losing its competitive edge in textiles due to increasing labour costs and this should help Indian textile companies such as Arvind.
India is the world’s second-largest raw cotton producer and textile exporter, next only to China. The government initiatives, such as ‘Make in India’ and enhanced ‘Technology Upgradation Fund Scheme’ (TUFS), will also benefit the sector. Arvind is already planning two garments units in Ethiopia and this should add an additional annual revenue of around Rs.1,000 crore.
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