Arvind Backs Gujarat As Its Base For Expansion

Ahmedabad: Arvind Ltd the $1.7 billion textile-to-retail conglomerate ,on Tuesday announced the launch of its largest garmenting hub in Gujarat. The company said that as a part of its expansion strategy, it has set up two manufacturing facilities in Bavla near Ahmedabad.

 A third facility will come on stream over the next few weeks, the company said in a media statement.

Arvind said that the manufacturing facilities have been set up with an investment of $53m.

"These facilities will add capacity of 3 million garments per month to the company's current garmenting operations, and generate additional revenues of $150m," Arvind said in a release.

It also said that the garmenting facilities will employ 12,000 people once operations reach optimal capacity. The facilities will strengthen Arvind's position in textiles and garmenting market as an integrated fibre to fashion provider, it said further.

 “At present only 10% of the fabrics we produce are converted into garments. Our aim is to convert 50% of our fabrics into garments over the next 5 years. The 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 several we are planning to create over the next few years,” Sanjay Lalbhai, chairman and managing director of Arvind Ltd, said in a statement.

 “Gujarat has been at the forefront of the textiles value chain. The state’s progressive textile policy has seen Gujarat become the leader in cotton production, spinning and fabric production. Now, with a supportive garment policy, the state is poised to become a large garmenting hub as this part of the global textile value chain becomes large in India. Arvind is leading this movement and the commencement of operations at the new facilities in Gujarat is a significant step towards this,” it said.