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The Textile Magazine
FEBRUARY 2012
Technical textiles, the newgrowth
engine for
Arvind
corporate news
Arvind Ltd., one of the
largest integrated textile, ap-
parel and branded apparel
players, is now relying on
advanced materials and the
technical textile segment as
a new growth engine.
Mr. Jayesh Shah, Director
& Chief Financial Officer,
said: “We have made in-
vestments in manufacturing
technical fabrics in a small
way and experimenting with
some of the industrial and
functional fabrics which
go into the manufacturing
of fire-retardant and bullet-
proof fabrics”.
Arvind has recently signed a
joint venture agreement with PD
Fibre Glass Group of Germany for
manufacture of glass fabrics in In-
dia. Fabrics made out of glass fiber
are primarily used for making wind
blades, and commercial production
is expected to commence in April.
“We are also currently studying a
project of non-woven fabrics used
for making tissues and other things.
We are looking at this as a next area
of growth for us. Our plan is that this
business would grow upto Rs. 500
crores in three years time”, said Mr.
Jayesh Shah.
Arvind has registered an 8 per
cent growth in consolidated net
profit from ordinary activities of Rs.
52 crores. Its revenue increased 19
per cent to Rs. 1,190 crores while
EBIDTA improved 40 per cent to
Rs. 180 crores. The growth in profits
came even after writing off Rs. 38
crores foreign exchange losses dur-
ing the quarter.
Net profit after extraordinary in-
come stands at Rs. 243 crores as the
company earned extraordinary in-
come of Rs. 191 crores (net of tax)
from sale of its stake in the JV com-
pany VF Arvind Brands Pvt. Ltd.
Commenting on the results as
well as outlook of the company, Mr.
Jayesh Shah observed: “The reve-
nue growth of 32 per cent in branded
apparel and retail business segments
and 21 per cent revenue growth in
textile business were the key drivers
for improved financial performance
at the consolidated level. We hope
to achieve 18 per cent growth in rev-
enue during the current finan-
cial year. While cotton prices
have softened, the selling
prices have adjusted down-
wards ahead of full benefit
of lower cotton prices which
may marginally impact the
operating margin in the fourth
quarter. While its established
business continues to do well,
the company is focusing on
advance materials and the
technical textile segment as
the new growth engine.”
Textile revenue grew by 21
per cent led by 27 per cent
growth in denim and 17 per
cent growth in shirting/khaki fab-
rics. The company sold 23.6 million
metres of denim and 17.6 million
metres of shirting/kakis in the third
quarter of 2010-11.
The company’s denim capacity
continues to be about 108 million
metres, and the shirting capacity
would be now 84 million metres. For
the current year, Arvind Mills has
made total capex of Rs. 350 crores,
which included Rs. 200 crores for
capacity expansion in shirting busi-
ness.
Arvind’s key brands are Ar-
row, US Polo and Flying Machine.
Across the board there has been a
growth of 25-40 per cent, the high-
est growth of course is in US Polo
where the growth is 44 per cent, ac-
cording to Mr. Jayesh Shah.
w
Mr. Jayesh Shah,
Director & CFO