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Textile and apparel company Arvind said it would demerge its branded apparel and engineering business from the parent company and list these separately on the exchanges. The branded apparel business will be demerged into Arvind Fashions. The company has brands US Polo, Arrow, Flying Machine, Tommy Hilfiger, GAP and more. Arvind said its shareholders would get one equity share of Arvind Fashions for every five they hold. Arvind Fashions' annual revenue is now Rs 2,900 crore and growing at 25 per cent.
The aim is revenue of Rs 9,000 crore by 2022, said Kulin Lalbhai, executive director.The other demerger would be an entity named Anup Engineering. Arvind shareholders will get one equity share of Anup for every 27 shares held by them in the parent company. "The demerger frees our resources and allows us to renew the focus on our textile business. Over the next three to four years, we will invest Rs 1,500 crore and transform the textile business. We will do this by focusing on three engines of growth and transformation — vertical integration, next-generation products and advanced material," said Sanjay Lalbhai, chairman and managing director. Arvind's stock lost 9.1 per cent on Wednesday, to close at Rs 413.50.