Arvind Brands aims to double turnover by 2012
04 November 2009
Apparel maker and retailer Arvind Brands has embarked on an expansion drive, across the country and in international markets, in a move aimed at more than doubling its turnover to Rs1,500 crore (Rs15 billion) by 2012.
Central to the expansion strategy is the strengthening of its portfolio of international and homegrown fashion brands besides boosting retail presence across India and the GCC markets, says J Suresh, chief executive of Arvind Brands & Retail, a subsidiary of the Rs3,000 crore garments giant Lalbhai Group flagship, Arvind Mills Limited.
Arvind Brands, which declared a turnover of Rs440 crore in 2008-09, is expecting a combined turnover of Rs600 crore for its retail and brands operations in the current fiscal year. By 2012, the company expects to boost retail revenues from Rs350 crore at present to Rs1,000 crore, and revenues from brands business to Rs500 crore from Rs250 crore at present.
The target is to account for more than 35 per cent of the Arvind Mills Group turnover within the next four years, he explained.
Arvind Brands holds licences for international brands including Arrow, Lee, Wrangler, Gant and Tommy Hilfiger for retail and wholesale sales in India. In addition, it owns a portfolio of casual sportswear and denim brands marketed in India, including homegrown fashion labels like Flying Machine, Newport and Excalibur, among others. The company also owns and operates a 150-outlet value retail chain known as Megamart in India.
The company has committed an investment Rs400 crore on expansion between 2008 and 2012, and has already invested Rs100 crore on the expansion of its product portfolio.
In June this year, Arvind added a sportswear brand, US Polo, to it portfolio. Also in the pipeline is the addition of Cherokee, another leading value brand, he said.
Arvind Brands, which spun off into a separate division of Arvind Group in April this year, would retail its existing and new range of branded apparels through major departmental stores both in India and abroad before venturing into exclusive outlets.