Arvind rose 4.28% to Rs 191.30 at 15:15 IST on BSE after the Arvind OG Nonwovens, a joint venture between Arvind and OG Corporation of Japan, inaugurated its manufacturing facilities near Ahmedabad, Gujarat, on 31 May 2014.
The announcement was made on Saturday, 31 May 2014.
Meanwhile, the S&P BSE Sensex was up 468.73 points or 1.94% at 24,686.07.
On BSE, so far 3.56 lakh shares were traded in the counter as against average daily volume of 4.11 lakh shares in the past one quarter.
The stock hit a high of Rs 192.30 and a low of Rs 183.50 so far during the day. The stock hit a 52-week high of Rs 204.90 on 26 May 2014. The stock hit a 52-week low of Rs 65 on 8 August 2013.
The stock had underperformed the market over the past one month till 30 May 2014, advancing 0.14% compared with Sensex's 8.03% rise. The scrip had, however, outperformed the market in past one quarter, jumping 17.56% as against Sensex's 14.66% rise.
The mid-cap company has equity capital of Rs 258.18 crore. Face value per share is Rs 10.
The joint venture (JV) will manufacture high quality nonwoven fabrics using needle-punch technology for bag house filtration, artificial leather and a variety of other applications. The JV also has a technology alliance with Kureha of Japan, Arvind and OG Corporation said in a combined statement.
Arvind OG has installed custom-built machines specifically designed to achieve Japanese quality standards and capable of handling various fibers such as M-Aramid, Homopolymer Acrylic, Poly-phenelyene Sulfone (PPS), Polyimide Polypropylene and Polyester. These will be manufactured at the newly installed facilities following the highest global standards of quality while leveraging the advantage of India's cost of production, the statement said.
The unit has started production in May 2014 with one line of needle-punching technology, with total investment of nearly Rs 50 crore and targeting to reach turnover in excess of Rs 100 crore in 3 years. Beyond this, Arvind will continue to expand capacities in this as well as other technologies within the Nonwoven fabrics space, which will be an important pillar of Arvind's technical textiles growth strategy going forward, the statement said.
On the occasion of inauguration of the manufacturing facility of Arvind OG Nonwovens on 31 May 2014 in Ahmedabad, Mr Punit Lalbhai, Executive Director of Arvind and CEO of the Advanced Materials Division said, "This is a big milestone for Arvind and for AMD. It marks our entry in the highly attractive nonwoven fabrics space, and we are looking to aggressively grow this vertical with our Japanese partners. Beyond this, we are also looking to invest in other technologies and product categories in the non-wovens space going forward."
Mr H. Machino, Managing Director of OG Corporation India and Director of the India JV further added, "Keeping the future in mind, India is a very important marketplace for OG Corporation. We are therefore delighted to partner with Arvind and establish a Nonwoven fabrics manufacturing facility in India".
OG Corporation of Japan, established in 1923 and with a reported turnover of $1.1 billion in 2013, is a specialized trading company that sells, exports, imports and manufactures a variety of high value products in Japan and world-wide.
Arvind's consolidated net profit rose 24.1% to Rs 94.05 crore on 31.1% growth in net sales to Rs 1880.23 crore in Q4 March 2014 over Q4 March 2013.
Arvind is India's largest textiles & clothing conglomerate, having achieved a turnover in excess of $1 billion in FY 2013-14. It enjoys a global leadership position in textiles as well as carries an unmatched domestic portfolio of apparel brands and retail formats.
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