As part of its ongoing capacity expansion strategy, the $1.7 billion textile-to-retail conglomerate Arvind Limited has launched its largest garmenting hub in Gujarat comprising 3 manufacturing facilities in Bavla near Ahmedabad. Of these, while two facilities have commissioned, the third will commence operations over the next few weeks.
Adding another 36 million garments per annum capacity to its existing garmenting operations, the hub will generate an additional revenue of Rs 10 billion for the flagship Arvind Ltd. Employing 12,000 people, the facilities have been set up at an investment of Rs 3.5 billion, the company stated in an official communique.
"Setting up of the garmenting hub by Arvind is a progressive development for Gujarat. These facilities will help in creating employment opportunities for inclusive development of the state. The state government, through the new garment policy, aims to attract Rs 1 trillion in investment and create 1 million jobs in the next five years. Our government will continue to provide support for all initiatives towards fulfilment of this goal," said Vijay Rupani, Chief Minister of Gujarat.
According to Sanjay Lalbhai, Chairman and Managing Director of Arvind Ltd, while it currently converts only 10 per cent of fabrics produced by it into garments, the company aims to convert 50 per cent of its fabrics into garments over the next five years.
"The facilities at Bavla will also contribute to the company’s foray into performance and functional wear (active wear) and synthetics. These new facilities are one of the several we are planning to create over the next few years. We are grateful to the Government of Gujarat for a favourable garment policy that has created a conducive environment for business," said Lalbhai.
Apart from Gujarat, Arvind Ltd. is in the process of developing large garment clusters in states like Jharkhand and Andhra Pradesh as well, with each of the clusters employing over 10,000 workers. As a result, Arvind's current manpower of over 45,000 is expected to more than double as these clusters become operational and reach optimal scale.
"All these clusters are being planned in rural and semi-urban localities and will provide employment to locals in the adjoining areas. These will employ a significant number of women, thereby impacting the social and economic fabric of the regions they are coming up in. We will further extend our established programs under our women empowerment, education and socio-economic development initiatives to each of the new hubs," Lalbhai added.
Meanwhile, Arvind Ltd. recently received the approval from National Company Law Tribunal (NCLT) for its scheme of demerger of its branded apparel and engineering businesses into separate entities. Arvind Ltd plans to invest Rs 5 billion per annum for the next 4-5 years with an aim to double revenue from its textile business to Rs 120 billion.