Arvind (company)

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Arvind Limited
FormerlyArvind Mills Limited (1931–2008)
Company type Public
Industry Conglomerate
Founded1931;93 years ago (1931)
Headquarters Ahmedabad, India
Key people
Sanjay Lalbhai (Chairman and Managing Director), Punit Lalbhai (Executive Director), Kulin Lalbhai (Executive Director),
ProductsDenim, knits, woven, engineering, retail, telecom, advanced material, agribusiness, real estate, the Arvind Store
Revenue₹5,407.26 crore (US$680 million) (2016) [1]
₹318.85 crore (US$40 million) (2016)
Number of employees
25,620 [2]
Parent Lalbhai Group
Website www.arvind.com

Arvind Limited (formerly Arvind Mills) is an Indian textile manufacturer and the flagship company of the Lalbhai Group. Its headquarters are in Naroda, Ahmedabad, Gujarat, India, and it has units at Santej (near Kalol). The company manufactures cotton shirting, denim, knits and bottomweight (khaki) fabrics. It has also recently ventured into technical textiles with its Advanced Materials Division in 2011. [3] The company is India's largest denim manufacturer. [4]

Contents

Sanjaybhai Lalbhai is the current Chairman and managing director of Arvind and Lalbhai Group. In the early 1980s, he led the 'Reno-vision' whereby the company brought denim into the domestic market, thus starting the jeans revolution in India. [5] Today it retails its own brands like Flying Machine, Newport and Excalibur and licensed international brands like Arrow, Tommy Hilfiger, and Calvin Klein through its nationwide retail network. Arvind also runs three clothing and accessories retail chains, the Arvind Store, Unlimited and Megamart, which stocks company brands. [6] [7]

History and operations

September: Arvind's subsidiary Arvind Lifestyle Brands acquired the business operations of British fashion retailers Debenhams and Next and American Lifestyle brand Nautica in India from Planet Retail marking the entry of Arvind into the Bridge to Luxury Department Store Segment and also entering into the fast growing segment of apparel specialty retail through Next stores. [8] The licensing agreement with Nautica consolidates company's already strong position in high potential sportswear segment. [8]

Businesses

Financial restructuring

In the mid-1990s, the company undertook a massive expansion of its denim capacity even though other cotton fabrics were slowly replacing the demand for denim. The expansion plan was funded by loans from both Indian and overseas financial institutions. With the demand for denim slowing, the company found it difficult to repay the loans, resulting in an increased interest burden on the loans. In the late 1990s, the company encountered financial problems due of its debt burden, resulting in incurring significant losses. [14]

The company came up with a debt-restructuring plan for the long-term debts being taken up in February 2001. This complex financial restructuring exercise, which involved several domestic and international lenders, is considered to be the benchmark and a case study in India. The restructuring was overseen by Jayesh Shah, CFO, and advised on by a JP Morgan Hong Kong team, led by Ahmad Ayaz.

In 2018, Arvind Ltd. demerged its branded apparel and engineering business into separate entities for enhanced focus and value addition for the shareholders of the Company. It got the nod from NCLT Ahmedabad bench for demerger in Oct 2018. [15] Arvind Fashions, the branded apparel entity, will be scaling up existing brand portfolio and improve profitability across brands. [16] Anveshan Heavy Engineering, earlier known as Anup Engineering, has laid down capex plans of ₹80 crore to double existing fabrication capacity of 15,000 tonnes per annum by implementing product mix. Out of the planned investment, ₹40 crore has already been invested. [17]

See also

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References

  1. ↑ "Arvind Ltd". BSE. Retrieved 30 July 2016.
  2. ↑ "Arvind Limited". arvind.com. Retrieved 20 May 2015.
  3. ↑ "industrial-visits | Oakbrook Business School". Archived from the original on 16 July 2019. Retrieved 16 July 2019.
  4. ↑ "Arvind Mills to issue warrants to promoters". Reuters. Mumbai. 28 September 2007.
  5. ↑ "Working Lives India: Denim king". BBC News. 7 February 2014. Retrieved 20 May 2015.
  6. ↑ "Arvind Mills lines up Rs 850 cr expansion plan over 5 years". Business Line. 26 October 2010. Retrieved 27 December 2010.[ dead link ]
  7. ↑ Sharma, Sanjeev; Jha, Mayur Shekhar (27 October 2007). "RIL eyes Arvind Mills' manufacturing facilities". The Economic Times. New Delhi. Retrieved 27 December 2010.
  8. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 "Arvind Ltd". Business Standard India. Retrieved 9 May 2021.
  9. ↑ Hegde, Prabha (19 August 2014). "Arvind Forays Into E-Commerce". Bloomberg TV India.
  10. ↑ "Fundamentally Right | Arvind Sustainability Report 2013-14" (PDF). Arvind. Retrieved 30 March 2019.
  11. ↑ Pani, Priyanka (26 May 2016). "Arvind to digitise its textile stores". The Hindu Business Line. Retrieved 13 June 2016.
  12. ↑ "GAP joins hands with Arvind to sell apparels through NNNow.com". The Hindu Business Line. 11 October 2016. Retrieved 10 May 2018.
  13. ↑ Environmental Solutions
  14. ↑ "Arvind Mills: From near bankruptcy to reinvention". The Economic Times. 14 December 2012. Archived from the original on 10 November 2013. Retrieved 10 November 2013.
  15. ↑ "Arvind gets NCLT's approval for demerger of branded apparel, engineering biz". The Economic Times. Bennett, Coleman & Co. Ltd. 26 October 2018. Retrieved 31 January 2019.
  16. ↑ "Arvind Fashions aims to double revenues to ₹10,000 crore by 2025". CNBC TV18. TV18 Broadcast Limited. 8 January 2019. Retrieved 31 January 2019.
  17. ↑ Vora, Rutam (14 May 2018). "Arvind's engineering arm aims to be a full solutions provider for oil sector". The Hindu Business Line. Retrieved 31 January 2019.
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