Arvind inks pact with Hanesbrands to sell Hanes in India

Co plans to grow Hanes vertical to Rs 500 cr in next 4 yrs, increase points of sales to 15,000 in next 3 yrs

Bangalore-based Arvind Life Style Brands, a player in the apparel brands on Monday said that the company has signed an agreement to market and sell basic and intimate apparel in the country under the Hanes and Wonderbra brands, under a licensing agreement with US-based Hanesbrands Inc.  Through the agreement the company has acquired the Hanes Brand India operations, however, the company didn't disclose the value of the deal.

Sanjay, Lalbhai, Chairman and MD of Arvind Ltd said: “This transaction is a significant milestone as it signals our entry into the highly lucrative market of branded apparel essential with lingerie and undergarments. This market segment of branded essential is estimated at over Rs 18,000 crore and is expected to grow over 18 per cent year-on-year. This new market niche offers a completely distinct and promising business opportunity for us, which will only help further consolidate our position in the Indian market.”

With the new agreement Arvind plans to increase the Hanes point of sales in India from the present 5,000 to 15,000 in the next three years. According to estimates men's innerwear market is pegged at around Rs 7,200 crore while that of women's innerwear is at around Rs 10,800 crore. The 100-year-old  Hanes brand offers high quality underwear, intimates, casual wear, hosiery and socks. Arvind Ltd plans to grow the Hanes Vertical within the company to achieve Rs 500 crore revenues over next four years.

“We are  very excited to enter the license agreement  in India for two strongest global brands with Arvind. Our Hanes and Wonderbra brands have great growth potential in the lingerie and branded apparel essential market in India,” said Gerald Evans, Co-Chief Operating Officer HanesBrands said.

During morning trade on the BSE the shares of the company was trading at Rs 90.75 up 1.62 per cent against previous close.