Aarvee plans denim launch

Products will be sold under the Aden brand in three cities

Aarvee Denims and Exports Limited (ADEL) will be launching its brand 'Aden' in domestic markets in the next few months.

Initially, company will promote its brand only in their retail outlets which are going to establish in Ahmedabad, Delhi and Mumbai.

Vinod Arora and Ashish Shah, managing directors of ADEL claimed that 'Aden' will consist of denim products in shirts, pants, jackets, skirts and many more in the price range between Rs 500 and Rs 700.

"As jeans is becoming common among all segments, we are offering denim wears at very low rates," said Shah.

'Aden' will have denim as well as non-denim wear. "Bottom weights will also be a part of 'Aden'" said Arora.

The company has also decided to invest around Rs 7 crores for marketing the brand.

"We will market our brand zone-wise," he claimed.

Currently, Aarvee has the capacity of 47 million metres per annum and very soon it will rise to 72 million metres per month after the two plants start functioning.

"We have invested Rs 110 crore in the establishment of two new denim plants in outskirts of Ahmedabad to increase the production capacity," said Arora.

Aarvee will continue making garments for international clients and out of total production of fabric, around one per cent will be used for Aden, explained Arora.

"As out of 30,000 meter denim fabric, it is converted to garments of around 25,000 meter, rest is useless. So making garments is very tedious job but demand of garments is rising despite of fabric," he said.

Marketing of 'Aden' will be done only in three cities.

"Two metros - Delhi and Mumbai and as we are based in Ahmedabad, third retail outlet will be set in there," said Arora.

After outlets are ready, the company will start selling 'Aden' through distributors across the country.

Arora claimed that Aarvee is second largest in domestic market share of denim fabric with around 25 per cent in north, west 12 per cent and for eastern part, distributors are based in Ahmedabad.

"But South India is dominated by garment exporters," he said.

In the last fiscal, the company's turnover was Rs 235 crore.

"It will rise to Rs 315 crore in next fiscal as our production capacity is gone up," claimed Arora.