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Arvind Ltd.

BSE: 500101 Sector: Industrials
NSE: ARVIND ISIN Code: INE034A01011
BSE 00:00 | 18 Oct 45.90 2.05
(4.68%)
OPEN

43.70

HIGH

46.65

LOW

43.40

NSE 00:00 | 18 Oct 45.90 2.15
(4.91%)
OPEN

43.65

HIGH

46.70

LOW

43.50

OPEN 43.70
PREVIOUS CLOSE 43.85
VOLUME 433056
52-Week high 125.02
52-Week low 42.00
P/E 5.12
Mkt Cap.(Rs cr) 1,188
Buy Price 45.00
Buy Qty 35.00
Sell Price 45.90
Sell Qty 502.00
OPEN 43.70
CLOSE 43.85
VOLUME 433056
52-Week high 125.02
52-Week low 42.00
P/E 5.12
Mkt Cap.(Rs cr) 1,188
Buy Price 45.00
Buy Qty 35.00
Sell Price 45.90
Sell Qty 502.00

Arvind Ltd. (ARVIND) - Chairman Speech

Company chairman speech

Dear Shareholders:

FY2019 was a landmark year in the 88-year history of Arvind as it gavebirth to two new companies - Arvind Fashions and Anup Engineering. This demerger clearsthe path forward for all three companies to chart their respective courses independently.

I am pleased to present the annual results of Arvind Limited which nowis sharply focussed on strengthening the core textiles business. In addition we willcontinue to nurture the Advanced Materials and Arvind Envisol as emerging businesseswhich will bear fruit over time.

The macro environment surrounding the textiles business continues to bechallenged by multiple forces. While the overall industry volumes saw modest growth inboth domestic and exports segments there has been a clear shift towards the value segmentfrom mid/premium offerings. The growth of this segment especially in India has benefitedmost as consumption migrates from the informal to the organised sector. This market shifthas imposed limitations on price realization as consumers trade-off innovative and higherquality products for aggressively priced or discounted merchandise. The growth of onlineretail also underlines this consumer preference for lower-priced and more fast-fashionproducts.

During this financial year Arvind has started to actively address thismarket-shift by tweaking its product mix organization and cost structures. In parallelArvind continued to implement our stated long-term strategy for the textiles business thatrests on 4 key pillars - vertical garmenting product innovation investments in brandArvind and Advanced Materials.

Over the course of the year our newly opened apparel manufacturingfacilities in Ranchi and Ahmedabad started shipping commercial orders. In addition ourexisting facilities in Bangalore area and Ethiopia also saw capacity expansion andscale-up. The net result was a capacity addition of 4 million pieces that resulted in 34million pieces of garments shipped to our customers during the year. In addition we alsoproduced 18 million pieces of essentials. As many of our new facilities ramp-upefficiencies during FY2020 we expect to exit the year at a run-rate of over 55 millionpieces (excluding essentials). Further we will continue to strengthen our long-term cutand sew partnerships with some of the top global garment manufacturers. In summary we areseeing strong momentum in our efforts to be strategic tier- 1 supply partners to leadingglobal brands.

Arvind recently introduced Indigo dyed knit wear - which combines theaesthetics of indigo denim with comfort of knitted athleisure products. This category isreviving a strong market response and promises to account for a significant portion ofour Indigo dyed business. Other themes in our innovation pipeline - focused aroundsportswear and products manufactured with environmentally friendly dyeing methods -continued to broaden our basket of product offerings.

During the year we also re-structured our fabric retail business. Nowall channels - MBOs EBOs and Wholesale - for both Shirting and Suitings have beenbrought under an integrated platform common leadership and branding approach. We arevery bullish about this segment to deliver excellent returns going forward. AdvancedMaterials saw a momentous year as it signed several new partnerships which significantlyadd to its capabilities and product range. Most notably we concluded agreements with topglobal players which will help us enter the thin composite sheet market and Cured In PlacePipe solutions. Our protective apparel business also saw rapid growth across all markets.

Arvind Envisol which provides water and waste-water treatmentsolutions delivered an outstanding performance as it completed multiple large projects.This business is poised further growth as it opens up new solution areas and newgeographies.

Our commitment to environmental protection continues to define ourpriorities in a significant manner. During the year we became one of the country'slargest roof-top solar installation as we commissioned the 16.2 MW facility taking ourtotal solar installations to 22 MW. We also signed partnerships with our customers thatwill enable Arvind to dramatically reduce its dependence on fresh water.

As I sign off I sincerely thank you for continuing to have faith yourleadership's ability to create value over time.

With warm regards

Sanjay Lalbhai