Indian denim major Arvind Ltd has opened its largest garment hub in the western state of Gujarat as part of the company’s capacity expansion strategy – a move that also marks its first foray into the performance and activewear market.
The INR350 crore investment will add capacity of 3m garments per month, employing 12,000 workers. The hub comprises three manufacturing facilities – two in Bavla near Ahmedabad, with a third facility expected to commence operations over the next few weeks.
Arvind says the new facilities will further strengthen its leadership position in the global textiles and garment market as an integrated fibre to fashion provider, and a solutions provider to global retailers and brands. They are expected to generate additional revenues of INR1,000 crore.
Gujarat, in particular, has always been at the forefront of India’s textiles value chain, and the state’s progressive textile policy has seen it become the leader in cotton production, spinning and fabric production.
“At present only 10% of the fabrics we produce are converted into garments,” says Shri. Sanjay Lalbhai, chairman and managing director of Arvind. “Our aim is to convert 50% of our fabrics into garments over the next five years. Bavla facilities are a step in this direction.
“These facilities 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.”
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Arvind’s workforce of over 45,000 is expected to more than double as the clusters become operational and reach optimal scale.
They are all being planned in rural and semi-urban localities and are expected to provide employment to locals in adjoining areas, primarily women. Arvind says it will further extend its women empowerment, education and socio-economic development initiatives to each of the new hubs, as well as its sustainability practices.
Arvind recently received approval from the National Company Law Tribunal (NCLT) for the demerger of its branded apparel and engineering businesses into separate entities. The company plans to invest INR500 crore per annum over the next 4-5 years with an aim of doubling revenue from its textile business to INR12,000 crore.