Himadri Buch Moneycontrol News
Arvind Ltd will be demerging its branded apparel business and engineering business into separate companies from the parent company to focus on its core textiles business, a press release from the company said.
The branded apparel business will be demerged into Arvind Fashions. Post the demerger, shareholders of Arvind will get one equity share of Arvind Fashions for every 5 shares held by them.
The engineering business will be demerged into an entity which will be named Anup Engineering. Post the demerger, shareholders of Arvind will be entitled for one equity share of Anup Engineering for 27 shares held by them.
The branded apparel business clocked in a revenue of Rs 2,898 crore last financial year ending March 2017, while the engineering business posted a revenue of about Rs 179 crore.
On completion of the process both the companies will be listed on the BSE and NSE, it said.
Commenting on the demerger, Sanjay Lalbhai, Chairman and Managing Director of Arvind said, “This demerger frees up our resources and allows us to renew our focus on our textile business.”
Over the next 3 years, Arvind is planning to invest Rs 1,500 crore and targeting double digit growth. Arvind Textile aims to touch a revenue of Rs 10,000 crore in the next 5-6 years.
According to Lalbhai, strategic investments in the segment will drive stronger revenue growth. Currently, revenue of the company is between 4-5 percent.
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