Arvind to ramp up domestic apparel retail business

Tuesday, 22 May 2012

Textile conglomerate, Arvind Mills, known for its denim fabric range across the world is targeting to capture the major chunk of domestic apparel retail business. This is its effort to become a national retail clothier and this time around, it’s competing with giant Raymond. In an effort to achieve its target, the company has taken up aggressive retail expansion across the country. Known for its successful brands like Flying Machine, Excalibur, Newport University, and Ruggers as well as licensed brands such as Geoffrey Beene, Cherokee, Elle, US Polo Association, Arrow, Izod, Energie, and Gant, apart from the master franchisee of Tommy Hilfiger through a joint venture (JV). The company presented its big aim by launching its first exclusive ‘Arvind Store,’ a concept that put the company’s best fabrics, brands and bespoke styling and tailoring solutions under one roof. After the launch it rolled out 30 more such stores and has plans to add another 70.

Arvind decided to shift its focus to domestic apparel retail, as it witnessed in the last three quarters of FY’12, its revenues grow by 39 per cent to Rs 1,200 crores in Q1, by 23 per cent to Rs 1,256 crores in Q2, and 19 per cent to Rs 1190 crores in Q3—driven mainly by the branded apparel and retail business segment. While exports are suffering due to economic slowdown in the West, the domestic apparel retail business proved to be the star performer for Arvind, posting quarterly growth of 44, 46 and 32 per cent this fiscal, and has seen earnings jump from Rs 250.5 crores in fiscal 2005-06 to Rs 816 crores in FY 2010-11. Today, at 23 per cent of its portfolio, brands and retail business contributes about Rs 940 crores to Arvind’s total turnover of over Rs 4,000 crores.

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