Arvind to shift focus to apparel and fabric retail

Wednesday, 11 January 2012

Textile major Arvind has now decided to increase its revenues by focussing on apparel and fabric retailing in FY 13. In a bid to achieve its goal, the 80 year-old textile and apparel major is transforming its business model from a pure textile play (B2B) to a retail-led strategy (B2C) at a time when the Indian retail industry is growing faster than the textile segment.

While Arvind’s textile business, mainly led by denim, grew by 20 per cent, retail and brands business grew by 47 per cent in FY 2011. The company witnessed a third of its Rs 4,000 crores revenues coming from apparel and fabric retail in the fiscal ’11 and the company expects this to go up to 41 per cent by FY 2013.

Other players in the same field like Raymond saw 26 per cent of its revenues coming from retailing in FY 2011 but had to close brands such as Manzoni, Be and Zapp and ended a joint venture with GAS in the past as they were not working out. Bombay Dyeing which has been making losses for the last couple of quarters, is also planning to change its image from a pure manufacturing company to a retail-focused one to boost revenues. It plans to increase its current 350 points of sale to 365 in the coming quarters.

Arvind has brands like Flying Machine, Ruggers, Excalibur in the premium segment, Mega Mart, Newport University and Colt in value segment, premium licensed brands such as Arrow, US Polo and Izod and luxury labels like GANT under its stable, making them a strong player across all segments.

Apart from focussing on retail expansion, Arvind wants to set up 10 exclusive ‘The Arvind Stores’ across south India, which retails fabrics, its ready-made garments and ready-to-stitch products. The company plans to have 100 exclusive stores under this brand.

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