Arvind one of the biggest apparel manufacturers and retailers now plans to lay emphasis onvalue-retail and life-style brands in order to touch a turnover of Rs 10 billion from its retail operations. With a total turnover of Rs 25 billion, it is a vertically integrated textile operator with interests ranging from cotton farming to clothing retail.
Last year, the parent company officially de-merged its apparel retailing segment into two divisions viz. Arvind Lifestyle Brands and Arvind Retail. Arvind Lifestyle Brands cater to the upper middle-class and above segments with brands like Arrow, US Polo, Izod and Gant in its portfolio. Arvind Retail on the other hand is focused on value-retailing through its Megamart chain of stores, particularly for the large Indian middle-class population.
This decision to officially de-merge into two divisions was taken after the strategy was successfully implemented, which resulted in the turnover of retail operations shooting up from Rs 2 billion five years ago to Rs 4.4 billion. The apparel retail segment turnover has now touched Rs 5.5 billion in the fiscal year ending March 31, 2010.
As for its apparel retain chain Megamart, it is growing very swiftly. Arvind plans to take the store count to 185 by the end of the current fiscal by adding 35-40 stores. According to K E Venkatachalapathy, Chief Operating Officer, Megamart they have invested Rs 60 crores so far in the last three years and are planning to invest another Rs 100 crores in the next three years.
Recently, Arvind signed an agreement to distribute the US-based, Cherokee brand in Saudi Arabia, UAE, Bahrain, Qatar, Oman, Kuwait and Egypt. This agreement is expected to boost the topline by Rs 300-400 million in the second year of operations.