Arvind to focus on retail and brand business

Monday, 08 November 2010

Textile conglomerate Arvind plans to focus strongly on its retail and brand businesses. Chairman Sanjay Lalbhai feels investors have started understanding what Arvind is all about. And he expects to see all four businesses viz textile, brand and retail and now real estate growing separately and creating value for the stakeholders. According to him they are now strongly focused on the retail and brand businesses. They are looking seriously at women’s wear because there are no brands in their portfolio; international brands and at the youth segment as there are no youth brands in their portfolio. In the next three months Arvind should announce their plans on these segments.

With strengthening of the textile business, global export expansion is a given. Lalbhai says they will look at all major denim cutting countries. From Vietnam to Cambodia, Indonesia, Sri Lanka and Egypt are some countries they will focus on. Africa too is in the radar since garmenting is going to move towards a lot of African countries.

He feels it’s difficult to predict the cost of cotton prices that are rising because prices are fluctuating on a daily basis. Demand and supply is tight but doesn’t warrant the kind of price escalation, which is taking place in cotton. The next six months are going to be a little fluid but things will settle down eventually, he says. He indicated that Arvind would absorb further price hikes as their key customers are serviced through a price linked contractual formula.

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