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The Textile Magazine
SEPTEMBER 2011
says Mr. Milind Hardikar, Group President, Strategic
Initiatives, Arvind Ltd.
All these efforts have translated into profits for
Arvind. The technical textiles division has grossed a
turnover of Rs. 100 crores in 2010-11 and is target-
ing a six-fold jump by generating revenue of Rs. 600
crores by 2014. “India is yet to come up with legisla-
tion for making various types of technical textiles com-
pulsory for hazardous work places. Once that is done,
the demand for such textiles is bound to increase man-
ifold,” he says.
As Arvind believes in diversification, it has entered
into real estate which has seen a recent boom in Gu-
jarat. Capitalizing on its land bank of 6.5 million sq.
metres in and around the twin cities of Ahmedabad and
Gandhinagar, the company has launched its ambitious
township projects. Now, Arvind is eyeing similar projects
around Surat, Bharuch, Vadodara and Jamnagar, each
having 10,000 to 15,000 residential units.
According to Mr. Kamal Singal, CEO, Arvind Real
Estate Business, as Arvind believes in dealing with the
best, it has recently tied up with Tata Housing. This is
another significant milestone for a township project.
The total built-up area for the project will be approxi-
mately 9 million sq. ft. In the 50:50 joint venture,
Arvind Smart Value Homes will come up on a land
valued at Rs. 250 crores. Arvind hopes to net a rev-
enue of Rs. 1,800-2,000 crores by 2014.
However, this will not be a first attempt for Arvind
that has already executed another housing project in
the eastern suburb of Ahmedabad through a joint ven-
ture with a leading city builder B Safal on 30 acres of
land which belonged to the Lalbhai Group. Now, it
plans to set up a high-end housing colony over 25
acres of land at Shanavad on the outskirts of Ahmeda-
bad.
Summing up the growth story of denim in the last
one decade, Arvind’s CFO and Director Jayesh Shah
says: “The group has become ‘strong and sustainable’
mainly on account of ‘de-risking’ its business. In early
2000, Arvind was essentially a denim company, with
70% of its revenue coming from denim. Today, denim
accounts for 35% of the revenue.”
“In 2001, as high as 65 per cent of the revenue from
denim came from exports. Today, denim exports ac-
count for 40 per cent. This underlines the shift in the
company’s focus from the export market to the do-
mestic one. On the other hand, the brands division of
Arvind, which accounted for just five per cent in 2001
today nets 35 per cent of its business.
“All segments of our business are registering growth
in the domestic market,” says Jayesh. “This is because
we are moving fast from being a B2B to B2C company.
Earlier, the fluctuations in cotton prices and the world
economy used to reflect on our bottomline, causing
apprehensions among shareholders. But not anymore,
as the company is now focusing more on the domestic
market which is growing steadily,” he adds.
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