Verticalisation of the textile segment, promising prospects of the branded apparel segment and a healthy order book in the engineering segment reinforce our confidence in the stock.
The Executive Director says demerger part of the strategy to push group revenues to Rs 20,000 crore in 4-5 years.
Credit Suisse believes the Goods and Services Tax (GST) can be a risk going forward. "With no indirect taxation in textile segment and just 5 percent VAT on the branded apparel segment, either demand or margins could be impacted by GST," the report highlighted.
All the retail formats (Aeropostale, Sephora, GAP etc) are going as per plans. At the store level, profitability is good, like-to-like growth is healthy too, said Sanjay Lalbhai, CMD, Arvind.
The Indian clothing industry holds an important position in the Indian economy. This sector has been growing at a CAGR of 10 percent from Rs 126000 crore in the FY07 to Rs 202600 crore in FY13.
Global apparel and accessories brand Tommy Hilfiger has picked a more direct route into India. It has bought out its partner Murjani Group's stake in Arvind Murjani brands and become Arvind's new 50:50 partner, reports CNBC-TV18's Vineetha Athrey.
International fashion brand Tommy Hilfiger has bought a 50% stake in apparel retailer Arvind's joint venture Arvind Murjani Brands (AMB) from partner Murjani Group.