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Arvind gains on JV with a Japanese firm

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Last Updated : Feb 28 2014 | 11:56 PM IST

Arvind rose 0.97% to Rs 155.85 at 15:17 IST on BSE after the company announced a joint venture with Goodhill Corporation of Japan by setting up a Greenfield suits manufacturing facility based out of Bommansandra Industrial estate in Bengaluru.

The announcement was made after market hours on Wednesday, 26 February 2014. The stock market was closed on Thursday, 27 February 2014, on account of Mahashivratri.

Meanwhile, the S&P BSE Sensex was up 140.96 points or 0.67% at 21,127.95.

On BSE, so far 4.02 lakh shares were traded in the counter as against average daily volume of 4.81 lakh shares in the past one quarter.

The stock hit a high of Rs 158.45 and a low of Rs 154 so far during the day. The stock had hit a 52-week high of Rs 156.50 on 8 January 2014. The stock had hit a 52-week low of Rs 65 on 8 August 2013.

The stock outperformed the market over the past one month till 26 February 2014, surging 9.31% compared with the Sensex's 0.69% fall. The scrip had also outperformed the market in past one quarter, jumping 28.14% as against Sensex's 2.75% rise.

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The mid-cap company has equity capital of Rs 258.18 crore. Face value per share is Rs 10.

Arvind Goodhill Suit Manufacturing, a joint venture (JV) between Arvind and Goodhill Corporation of Japan, announced launch of formal suits on Wednesday, 26 February 2014. The JV firm has set up a Greenfield suits manufacturing facility based out of Bommansandra Industrial estate in Bengaluru, to produce high-end formal suits catering to the needs of evolved Indian and Overseas customers, Arvind said in a statement. The unit has started with two lines each for jackets and trousers, with the capacity to produce 3.50 lakh pieces of jackets and 6 lakh pairs of trousers annually. In its first year of operation, it expects to achieve a turnover of around Rs 100 crore, Arvind said in a statement.

Commenting on product launch, Mr. Kuhn Lalbhai, Executive Director, Arvind said, "With this venture, Arvind has entered into the worsted segment and suits manufacturing, expanding its product portfolio offering. The company now offers a complete vertical solution in the garmenting space ranging from suits to jeans and from formals to casuals. With Goodhill's design and process technology, we will be able to target the premium market and offer our customers a product made in India and marked to perfection".

Mr. Hideki Yoshioka, President, Goodhill Corporation, Japan said, "With its diverse culture and large population base, India offers immense growth potential for suiting business. Through this joint venture with Arvind, we will have the advantage of the wide network presence of one of India's largest apparel brands and retail players. With over 50 years of experience in this space we intend to bring the best technology and collaborate with Arvind to bring world class products to India. We believe this collaboration will turn out to be a perfect entry to the Indian market".

Currently producing 6 million pieces of Jeans and 4 million pieces of shirts annually out of their 7 production facilities in Bengaluru, Arvind said it is expanding its offering to offer complete solution to its customers who are the most marquee global and Indian names in apparel brands and retail.

Arvind's consolidated net profit surged 35.6% to Rs 102.17 crore on 28% growth in net sales to Rs 1792.20 crore in Q3 December 2013 over Q3 December 2012.

Arvind is India's largest integrated textile player. It is also one of the largest producers of denim fabrics and is supplier to a large number of fashion brands in the world.

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First Published: Feb 28 2014 | 3:19 PM IST

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