Expansion to double Aarvee Denims' turnover

Aarvee Denims and Exports Ltd is expecting to almost double its turnover in 2008-09 on the back of its Rs 70-crore expansion plan in garmenting and retail.

The Ahmedabad-based denim player has set a target of over Rs 400 crore turnover in the next financial year, as against the current Rs 250 crore per annum.

The company is also hoping to increase the share of non-denim bottom weights and garments in its overall turnover from the present 25 per cent each.

The company is ramping up its manufacturing capacity to over 10,000 garments per day from 8,000, and may increase this to 50,000 per day, if required, said Ashish Shah, managing director of Aarvee Denims and Exports Ltd.

"Mostly, garments will be consumed by our retail wing which is under expansion. Both our brands, De Extase and Fashion Wrapper, will be sold in at least 100 exclusive stores each within two years," said Shah, adding the company might reduce supply of readymade garments to other players to give its retail plans a boost.

Aarvee Denims is one of the major suppliers to retail players like Reliance, Pantaloons, Duke and Aditya Birla Retail.

With the denim fabric market facing a glut, companies like Aarvee are forced to diversify.

"In the last two years, denim production in India has doubled from 350 million metres per annum to 600 million metres per annum. This has also led to a reduction in price of the fabric from Rs 95-100 per metre to Rs 75-80 per metre. A wiser thing to do is to channelise this oversupply in better markets and retail garmenting seemed one of them," said Shah.

Exports of the company, which form 25-30 per cent of the total turnover, are set to fall in the next financial year.