To open 250 ‘Arvind Stores’ by the end of FY13.
Domestic textile maker and apparel retailer, Arvind Limited, is looking at adding two more foreign brands to its existing portfolio of four brands (Arrow, US Polo, Flying Machine and Izod) by the end of this year, said Kulin Sanjay Lalbhai, chief manager (retail).
“With youthwear retailing market in an upswing mode, we are planning to add two more brands in that category. We will probably take a licensing route,” he told mediapersons on Friday.
Announcing their new retailing format ‘Arvind Store’, which would offer the company’s fabric and premium readymade brands besides providing customised tailoring solutions under one roof, here, Lalbhai said that the company would be opening 250 such stores across the country by the end of FY13.
“Of these, around 160 stores will be company-owned, each having a carpet area of 4,000 sq ft and involving an investment of between Rs 50 lakh and Rs 70 lakh,” he said.
With 13 stores already operational, including the flagship company-owned outlet that was opened in the city today, it is expecting the Arvind Store concept to bring in revenues of Rs 400 crore by FY13, from the present Rs 25 crore.
He revealed that the format had potential market in countries like Dubai and South Africa, and the company would start exploring at some point.
Stating that Arvind Store, and readymade brand and retail would be strategic businesses for the company, Lalbhai said Arvind was expecting its brands and retail segment to garner revenues of Rs 1,200 crore this year, as against Rs 820 crore last year, and touch Rs 2,500 crore by FY13.
He added,“Both these businesses put together will become more than 30 per cent of Arvind’s total revenues in a few years' time.”
On the central government levying 10 per cent excise duty on branded read-made textiles garments, Lalbhai said it was a setback for all the branded players.
In general, across the board, the industry expected the worst and there was a 20-25 per cent price hike on branded garments. This, however is past, and there are no plans to increase prices now, he said.
Arvind Limited’s scrip ended the trade at Rs 82.10 on the BSE, down 2.90 per cent, over the previous close of Rs 84.55.
