Arvind jumped 5.93% to Rs 165.15 at 11:48 IST on BSE, extending Tuesday's 5.77% rise triggered by the company joining Indian joint venture with PVH Corp for operation of Calvin Klein business in India.
The announcement was made after market hours on Monday, 24 March 2014. Shares of Arvind jumped 5.77% to Rs 155.90 on Tuesday, 25 March 2014. The stock has risen 12.04% in two trading sessions from Rs 147.40 on 24 March 2014.
Meanwhile, the BSE Sensex was up 77.84 points, or 0.35%, to 22,133.05.
On BSE, so far 6.94 lakh shares were traded in the counter, compared with an average volume of 4.52 lakh shares in the past one quarter.
The stock hit a high of Rs 165.90 so far during the day, which is also 52-week high for the counter. The stock hit a low of Rs 156.20 so far during the day. 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 25 March 2014, rising 5.66% compared with the Sensex's 5.77% rise. The scrip had, however, outperformed the market in past one quarter, rising 15.01% as against Sensex's 4.86% rise.
The mid-cap company has equity capital of Rs 258.18 crore. Face value per share is Rs 10.
PVH Corp, the owner of the Calvin Klein trademarks worldwide, and Arvind announced that Arvind Brands and Retail, a subsidiary of Arvind, has replaced PVH's prior joint venture (JV) partners in Premium Garments Wholesale Trading, the licensee of the Calvin Klein trademarks in India. In connection with the transaction, Calvin Klein, Inc., a wholly owned subsidiary of PVH, entered into a new license with Premium Garments to distribute Calvin Klein Jeans apparel and accessories and Calvin Klein Underwear products in India, Arvind and PVH said in a combined statement.
This new arrangement takes advantage of PVH's control of the brand vision for these two Calvin Klein product categories resulting from its acquisition of The Warnaco Group, Inc. in February 2013 and Arvind's operational expertise in the region, and is intended to maximize the market opportunities for these product categories throughout India, the statement from Arvind and PVH said.
The JV will focus on the expansion and enhancement of the existing Calvin Klein Jeans apparel and accessories (including belts, bags, and small leather goods) and Calvin Klein Underwear (including sleepwear and loungewear) businesses.
PVH and Arvind are also partners in a JV that licenses PVH's Tommy Hilfiger brand in India.
PVH Corp., one of the world's largest apparel companies, owns and markets the iconic Calvin Klein and Tommy Hilfiger brands worldwide. Calvin Klein, Inc. is one of the leading fashion design and marketing studios in the world.
On a consolidated basis, Arvind's net profit surged 35.6% to Rs 102.17 crore on 28% growth in net sales to Rs 1792.20 crore in Q3 December 2013 over Q3 December 2012.
Arvind is India's largest integrated textile player. It is also one of the largest producers of denim fabrics and is supplier to a large number of fashion brands in the world.
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