Arvind Brands Plans Three New Labels

Arvind Brands Ltd plans to launch three new labels but has ruled out acquisition of any brands for now.

"We are in all the ranges and price points. Hence there is no need for acquisition for the present. The only segment we do not have a presence is the women's wear which we are looking at the possibility of a launch next year," Darshan Mehta, president, said.

The brands which are being planned for launch are Healthex & NBSP, Bay Island cotton shirts and AXS shirts which are made from export-sound surplus.

Mehta said the company expects at least 40 per cent of its revenues to come from exports during the next few years compared with the current 20 per cent. "The export market is extremely good and we hope to cash in on that," Mehta said.

 

Mehta said the Arvind brand, which was valued around $100 million three years ago, has 10 brands under its fold. It sold around 3.4 million pieces in the domestic market last calendar year.

Mehta said based on the success of Lee and Wrangler jeans, VF Corporation offered the company the licence for their children's wear brand, Healthex. This will be the first foray of Arvind into the children's wear segment under the age group of 0-14 years. "We are the first company to get three licences from VF Corporation," Mehta said. The US-based VF Corporation is one of the world's leading garment maker.

Mehta said AXS shirts are made from fabric which are used to make international branded shirts. "AXS is made from the surplus that we have and we have attractively priced this brand," Mehta said.

Mehta said Bay Island cotton shirts are also competitively priced even though they are in the premium range. Bay Island has already had a soft launch recently.

Mehta said the company recently launched its costliest shirt priced at around Rs 2,000 under the Arrow brand. Arvind has a five year contract with the US-based Clue Peabody & AMP Company, the owners of Arrow brand, which will end in 2004.

The company has re-grouped sub-brands of the Arrow shirts into three main categories which are premium, sport and classic, as per the worldwide merchandising plans of Clue Peadbody, makers of Arrow shirts. Arvind Brands Ltd has two subsidiaries, Arvind Clothing Ltd and Arvind Fashions Ltd, through which it holds licences for some of the major international brands.