Arvind eyes Rs 12k crore revenue from textile biz in next 5 yrs

Textiles maker Arvind Ltd is planning to invest Rs 500 crore per annum for the next 4-5 years with an aim to double revenue from its textile business to Rs 12,000 crore.

The company is in the process of de-merging it's brands and engineering businesses into separate entities.

"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.

"We are planning to double our textile business from Rs 6,000 crore to Rs 12,000 crore in 5 years time. 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.

The company will fund the expansion from internal cash flows.

We are looking dramatic ramp up in garments (making garments from fabrics) from 10 percent at present to 50 percent over time. A big chunk of this planned investment will be for garments, he added.

The company is also looking at developing 3 large garment clusters in Jharkhand, Andhra Pradesh, and Gujarat. Each of these clusters will employ 4,000-8,000 workers. It already has a cluster operational in Ethiopia in Africa, which the company uses to reach out to America and European markets.

"All of these clusters are in execution mode. By end of the third quarter or beginning of fourth quarter, we will begin work in Jharkhand and Gujarat. Clusterin Andhra Pradesh will take a few more quarters to be operational. These clusters will be like a global supply chain," Lalbhai said.

Arvind Ltd is also planning to foray into performance and functional clothing (activewear) and synthetics.

It also considering scaling up its technical textiles businesses.

Lalbhai said the de-merger process, after which all the three businesses will be listed separately, will be complete by end of the third quarter of this fiscal.