Business

Arvind Fashions Set To Become Independent From Its Parent Company Arvind Ltd

Arvind Limited, India’s largest textile and branded apparel player, has announced its decision to demerge its branded apparel business Arvind Fashions, from the parent company.

The branded apparel business will be demerged into the entity Arvind Fashions Limited.

At a 25 per cent CAGR, the branded apparel business is one of the fastest growing apparel and accessory businesses in the country.

Arvind has a rich portfolio of international and owned brands. Its portfolio of brands includes US Polo Association, Arrow, Flying Machine, Tommy Hilfiger, Gap, Calvin Klein, Hanes, Gant, Nautica, Izod, Ed Hardy, Elle, Cherokee, The Children’s Place and Aeropostale. It also owns the value chain ‘Unlimited’ and is the franchise partner of the world’s largest beauty retailer ‘Sephora’.

Commenting on the development, Arvind Limited Chairman and Managing Director Sanjay Lalbhai said, “Two years ago, we demerged Arvind Smart Spaces as an independent company, and its performance has exceeded expectations. We are very pleased to announce that Arvind Fashions and Anup Engineering will also pursue their independent courses now.”

He said that Arvind Fashions has already demonstrated an industry-leading track-record in the branded apparel and accessory space. The demerger, he said, frees up resources and allows us to renew focus on the textiles business.

“Over next three to four years, we will invest almost Rs 1,500 crore and transform the textile business. We will do this by focusing on three engines of growth and transformation. These are vertical integration, next generation products and advanced materials,” he said.

Vertical Integration will enable garment manufacturing to become and end-to-end solution providers and strategic supply chain partners to the world’s most successful brands and retail concepts.

Next generation products would mean redefining textiles by focusing on path-breaking technologies and manufacturing processes like multi-functional textiles and smart wearables.

While advanced materials would mean enabling textiles to catalyse the company’s entry into fields like human protection, industrial process, infrastructure and transportation, and thereby build a business with high entry barriers, intellectual property creation, with high returns.

“This focus will not only enable us to grow at an accelerated pace, but also drive better return on investments and build a business model that is future-ready,” he said.