Arvind aims to grow 50% annually

Thursday, 30 December 2010

Arvind Lifestyle Brands Ltd and Arvind Retail Ltd, the brand and value-retail divisions of textile firm Arvind Ltd are aiming at a turnover of Rs 2,500 crores by 2015. The two divisions were demerged from the textile company in fiscal 2010 and are likely to post 50 per cent growth in topline this fiscal. Besides, the brands’ division that has a sizeable portfolio of premium men’s wear brands is looking to bring in a few more international premium brands in women and youth segments. The lifestyle brands division has a long-term licensee deal with several international brands that are being sold through brand-exclusive retail outlets in the country. The current portfolio consists of premium brands - Arrow, US Polo, Izod and super premium brands - Swiss brand Gant and Italian denim wear Energie. All of these cater to the men’s segment. Moreover the brand is also looking forward to launch a women’s premium brand by September next year and a youth brand as well.

Their brand US Polo is in its second year of operation and is set to hit Rs100 crores in revenue next year. Similarly, denim brand Flying Machine that was relaunched, is also progressing towards Rs100 crores. Formal-wear brand Arrow that was a Rs 90 crores brand three years ago will cross the Rs270 crores mark this year, tripling sales in three years. Also, Gant, which saw a slow start, has now started to pick up well. The divisions have plans to invest nearly Rs 500 crores over the next five years, which will be funded through internal accruals. About 60 per cent of the investment will go towards expansion of value-chain Megamart under the retail division, and the remaining towards opening exclusive stores of licensed brands. Megamart will reach a 200 store mark from 120 stores, by the end of this financial year. The company has aggressive plans with Megamart and plans to open 100 stores every year for next two-three years in order to touch 400 stores by 2015. Megamart will also see addition of newer brands in the mass segment.

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