Banking on its innovation and R&D, Arvind Ltd. is eyeing a $500 million (Rs 2,200 crore approx.) revenue for its denim business over next two years. The company currently earns a revenue of $320 million (Rs 1,400 crore approx.) from its denim business, 60 per cent of which is exported to European and South East Asian countries, apart from the US.
Apart from introducing innovative products like excel denim (in association with Birla Cellulose), Arvind Ltd. is also strengthening its backward integration in textiles by adding 24,000 spindles to its spinning capacity. "For the financial year 2011-12, we are expecting a growth of 15-20 per cent in denim. Moreover, from the current $320 million denim business, in the next two year we intend to grow to $500 million business. However, the challenge for us is to innovate and create value for our stakeholders. Innovation and design will drive us through such a growth," said Aamir Akhtar, chief executive officer - Arvind Denims.
As part of its strategy of innovative denim products, Arvind Ltd. recently tied up with Birla Cellulose to exclusively produce excel denim fabric. Focused on women's jeans, the excel denim fabric has already been commercialised internationally, earning a business of $ 10 million (Rs 45 crore approx.). According to Akhtar, the company expects excel denim to do a $ 50 million (Rs 2,200 crore approx.) business in next two years.
Talking about the company's Bangladesh plant, Akhtar said that Arvind Ltd will commission the denim fabric manufacturing plant in the neighbouring country by January 2012. "Initially, the Bangladesh plant will commission with a capacity of 10 million metres per annum while later on we intend to raise it up to 30 million metres per annum. In India, we recently expanded denim manufacturing capacity by nine million metres per annum, taking up the total capacity to 120 million metres per annum," Akhtar added.
Currently Arvind manufactures around 2-3 million metres per annum of the newly launched excel denim fabric. The company intends to expand the production of excel denim to 12 million metres per annum in the next two years.
