Arvind Brands targets Rs 5,000cr sales in 5 yrs
Arvind Lifestyle Brands, a unit of textile firm Arvind Ltd, expects sales of Rs 5,000 crore in the next 5 years, helped by strong growth in the existing business and acquisition of new brands.
September 27, 2012 / 22:54 IST
Nachiket Kelkar
moneycontrol.com
Arvind Lifestyle Brands, a unit of textile firm Arvind Ltd, expects sales of Rs 5,000 crore in the next 5 years, helped by strong growth in the existing business and acquisition of new brands.While the company expects Rs 3,000 crore sales from organic growth, Rs 2,000 crore sales are expected from acquiring brands and licenses in the next 5 years. It will invest Rs 1,000 crore over the period.Last year, Arvind Brands reported sales of Rs 1,600 crore.Arvind Brands sells various apparel labels like Arrow, Elle, Flying Machine, US Polo, Cherokee and Tommy Hilfiger among others, either through licenses or joint ventures.On Thursday, it acquired the business operations of British fashion retailers Debenhams and Next and American lifestyle brand Nautica in India from Planet Retail.Arvind plans to expand the number of Debenhams department stores in India to 8 from 2 in three years. The number of Next stores will go up to 12 from 3 and it will add 30 Nautica stores and 71 shop-in-shops in other department stores, during the same period.Overall, Arvind Brands currently has 730 retail stores spread over 150 towns in India. It also has 5 outlets in Dubai and 2 in South Africa."We have a strong menswear portfolio, which will get further strengthened with Nautica. Debenhams and Next will substantially strengthen our position in womenswear and kidswear segment. We plan to achieve Rs 500 crore revenue (in these brands), from current Rs 70 crore, by investing Rs 150 crore in to these three brands," said MD and CEO J Suresh.While the India business operations of the three brands were acquired from Planet Retail, Arvind has signed long-term license deals with the respective brand owners, he said.Arvind Ltd Chairman Sanjay Lalbhai said that the company is in process of tying up with many more international brands."We have a healthy pipeline of negotiated brands, which will be launched soon," he said, without disclosing any particular details.Currently India contributes 95% of Arvind Brand's sales, and it is keen on expanding further in international markets.For instance, Suresh said, Middle East and South Africa will be strong markets for the company, with brands like Arrow driving the growth there.Arvind Brands is also planning to introduce the Flying Machine jeanswear brand in South Africa.Arvind shares closed at Rs 78.65, up 0.3% on NSE on Thursday.nachiket.kelkar@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
