Arvind Ltd to expand textile business, eyes Rs 12,000 crore revenue in 5 years
Textile and apparel major Arvind Ltd has massive expansion plans for its textile business and will be investing Rs 500 crore (approx $69.4 million) every year as it looks to double revenue from the business over the next 5 years.
The company expects its revenue to jump from Rs 6,000 crore to Rs 12,000 crore from its textile business by 2023. Arvind Ltd had reported revenue of Rs 2,875 crore in the first quarter of the current fiscal year.
“We are planning to double our textile business from Rs 6,000 crore to Rs 12,000 crore in the next 5 years. We plan to invest Rs 500 crore every year for the next five years to expand its textile business,” Arvind Ltd Executive Director Kulin Lalbhai told PTI.
“In the last 5-6 years, we have not put much capital in the textile business. We are very excited about textiles. We see tremendous growth opportunities. This capex will take the business from a single digit growth rate at present into double-digit growth rate,” he added.
“The company will fund the expansion from internal cash flows. We are looking dramatic ramp up in garmenting (making garments from fabrics) from 10 percent at present to 50 percent over time. A big chunk of this planned investment will be for garmenting,” he further added.
Arvind Limited is a leading player in India’s textile and apparel market. It owns the India licenses for brands like Tommy Hilfiger, Calvin Klein, Arrow, Gant, Nautica, Gap, and Aeropostale.
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