Arvind, a textile manufacturer and the flagship company of the Lalbhai Group, will invest Rs 1,500 crore in three years to augment its garment making capacity from fabric by six-fold.
The company will open large factories in Gujarat, Karnataka, Jharkhand and Andhra Pradesh which can employ 10,000 workers.
The aim is to double India’s largest denim maker’s textile turnover by 2022 from Rs 6,000 crore at present. Denim constitutes around Rs 2,500 crore to the total turnover.
The company will use cash flows to fund Arvind Fashions to expand the fabric-to-garment conversion capacity.
The company has also listed Arvind Fashions separately. The cashflow of Rs 1,500 crore that will get generated by Arvind will be invested in these new areas of textiles, technical textiles, apparel brands and emerging businesses.
After incubating fashion apparel brands and real estate from the cash flow of the textile business, the Ahmedabad-based company is restructuring its many businesses into four listed entities.
The parent Arvind will comprise the Rs 6,000 crore textile business and some other incubation businesses such as water, digital, telecom, advanced materials and technical textiles, while the entire consumer business, which is called Arvind Fashions, will be a Rs 4,000 crore business which will be independently listed.
The third one will be a small, engineering business which is being spun off and christened Anup Engineering, and the fourth one is Arvind SmartSpaces, a listed real estate developer.