Arvind to raise Rs 490 cr in long-term loans, restrict capital expenditure

Arvind had pre-paid a term loan of Rs 40 cr falling due in FY21

Arvind Ltd, the Ahmedabad-based textile major, is planning to raise long-term credit worth Rs 490 crore to replace short-term loans as part of plans to improve its financial profile.

It will also lower capital expenditure to Rs 300 crore from the earlier plan of Rs 500 crore. And, has released corporate guarantee obligations for subsidiaries and associates. 

The management has articulated a plan to reduce the company’s sizable debt and outside liabilities by March 2020. 

It will do so through rationalisation of gross working capital, almost half of which it says was achieved by end-August.

Meanwhile, CARE Ratings has downgraded its ranking for Arvind’s