The textiles and apparel player said the demerged entities will be listed on the bourses.
"We have decided to demerge our branded apparel and engineering businesses from the parent company. The branded apparel business will be demerged into Arvind Fashions and the engineering business will be demerged into another entity Anup Engineering," Arvind chairman and managing director Sanjay Lalbhai told reporters here.
Arvind shareholders will get 1 share of Arvind Fashions for every 5 shares held in Arvind and will get 1 share of Anup Engineering for 27 held in Arvind.
Demerger will help the specific companies to align their own objectives and help them raise resources independently. Each of the three businesses has attractive market opportunity and is well poised with solid independent momentum, he said.
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Arvind, the flagship company, manufactures and sells about 300 million meters of fabrics and over 30 million pieces of ready-to-wear apparel. The textiles business aspires to reach a revenue of Rs 10,000 crore in the next 5-6 years period, he said.
Arvind Fashions is the country's largest platform of branded apparel and accessories, growing as an important player in specialty retail. The company's own brands include Flying Machine, Colt, Ruggers and Excalibur, among others.
Its licensed product brands include global names, such as Tommy Hilfiger, Calvin Klein, Arrow, Gant, Nautica, IZOD and US Polo.
Total income during the quarter under review stood at Rs 2,654.03 crore, up from Rs 2,353.22 crore in the same period of 2016-17.
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