Arvind to demerge branded apparel, engineering businesses

Arvind Ltd today announced it will spin off its branded apparel and engineering businesses into separate listed companies to focus on its core textiles business and invest Rs 1,500 crore over the next three years to achieve a double digit growth.
The textiles and apparel player said the demerged entities will be listed on the bourses.
"We have decided to demerge our branded apparel and engineering businesses from the parent company. The branded apparel business will be demerged into Arvind Fashions and the engineering business will be demerged into another entity Anup Engineering," Arvind chairman and managing director Sanjay Lalbhai told reporters here.

On completion of the process, both the companies will be listed on the BSE and the NSE.
Arvind shareholders will get 1 share of Arvind Fashions for every 5 shares held in Arvind and will get 1 share of Anup Engineering for 27 held in Arvind.
Demerger will help the specific companies to align their own objectives and help them raise resources independently. Each of the three businesses has attractive market opportunity and is well poised with solid independent momentum, he said.

Arvind, the flagship company, manufactures and sells about 300 million meters of fabrics and over 30 million pieces of ready-to-wear apparel. The textiles business aspires to reach a revenue of Rs 10,000 crore in the next 5-6 years period, he said.

"Over the next 3-4 years, we will invest almost Rs 1,500 crore and transform the textile business. We will do this by focusing on engines of growth and transformation namely -- vertical integration, becoming an end-to-end solution provider and strategic supply chain partner to the world's most successful brands and retail concepts," Lalbhai said.
Arvind Fashions is the country's largest platform of branded apparel and accessories, growing as an important player in specialty retail. The company's own brands include Flying Machine, Colt, Ruggers and Excalibur, among others.
Its licensed product brands include global names, such as Tommy Hilfiger, Calvin Klein, Arrow, Gant, Nautica, IZOD and US Polo.

Meanwhile, Arvind reported a consolidated net profit of Rs 64.50 crore for the quarter ended September 30. The company had posted a net profit of Rs 76.65 crore during the same period previous fiscal.
Total income during the quarter under review stood at Rs 2,654.03 crore, up from Rs 2,353.22 crore in the same period of 2016-17.