Aarvee Denims sees fabric exports crossing 70mn mt

Aarvee Denims and Exports Ltd is in negotiations with some US-based major brands for achieving its export targets of 70 million metres of denim fabric this year.

The Ahmedabad-based company feels that the best strategy to recover the impact of rupee appreciation is to increase the quantity of exports and to be flexible in approach and attitude.

The company is also planning to pay extra focus on its retailing segment by launching the second brand of denims after De Extase within the next two months.

The new brand will be known as "Fashion Wrapper" and it will be an economy brand where the prices are concerned.

The company launched its first exclusive showroom of De Extase in Ahmedabad on Sunday.

The company is planning to focus on its retailing segment by opening 200 stores (100 each of De Extase and Fashion Wrapper)across the country within the next two years.

Vinod Arora, Chairman and MD, Aarvee Denims and Exports Ltd, told Business Standard, "We are into negotiations with some US-based garment majors for exporting our fabric and garments to them. Our focus is to increase the quantum of exports to recover from the appreciation of rupee against dollar. We are aiming to increase our denim fabric exports to 70 million metres this year against the last year's 40-42 million metres' exports."

"The best strategy to recover from the impact of Re appreciation is to be flexible in your approach and attitude as well as increase your export quantity," he said.

The company is also focussing on its retailing segment by aggressively opening more exclusive stores in the future.

"We have launched our designer denim brand De Extase by opening the first store in Ahmedabad today. We will add 99 more stores to this brand across the country within the next two years. We are also launching our second brand "Fashion Wrapper" within the next two months and its 100 stores within the next two years. In all we will have 200 stores for these two brands."

"Fashion Wrapper will be an economy brand and the prices of denims will start in the rage of Rs 400 to Rs 500. De Extase will be promoted as a designer brand and its price range is between Rs 600 to Rs 1,000," Arora said.

Talking about the sales he said, "We have the installed facility to produce 8,000 garments per day at our Ahmedabad facility. We are aiming at increasing this facility to 25,000 garments per day depending on the demand."

When asked whether the domestic retailing will help the company in recovering the losses inflicted by the stronger rupee Arora said, "It will take some time to start profiting from the retailing, however, it will certainly strengthen our corporate profile over the period."