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Thursday, 06 May 2010 |
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Arvind Brands an apparel company of Arvind Mills, best known for their brands Arrow, Gant and Izod
is banking on its value retail and lifestyle units. The company is rapidly growing its retail chain, Megamart, opening three stores a month. This year the company plans to open 35 to 40 small format stores, taking the total to 180-185 stores. Megamart will expand on its existing market in south India in addition to strengthening its presence in Maharashtra and Kolkata.
The company plans to expand its premium brand outlets, Arrow stores. It wants to scale it up from 75 to 100 stores this year. Ten US Polo outlets will also be opened and some Izod stores will be added.
Five years back, Arvind was a Rs 200 crores company, running at an operational loss of Rs 17 crores. It then put together a strategy to bring in stronger focus on the business and divided it into value retailing through Megamart for the large middle class and lifestyle brands. With this model, Arvind managed to reach a total business of Rs 440 crores. The company is also in talks with Energie, a super premium Italian brand. They plan to continue looking for more brands to add to the range in Megamart. However, they have no plans to launch any brands of their own as of now.
The company’s goal was to take Megamart to Rs 600 crores and the brands business to Rs 400 crores by end of fiscal 2011-2012. Their revenue as on March 31, 2010 stood at Rs 550 crores. |
