Arvind Limited with its latest entry into non-woven fabric manufacturing through a new joint venture with OG Corporation of Japan is now eyeing at Rs 1000 crore turnover from technical textiles segment alone.
Arvind has set up a new joint venture company Arvind OG Nonwovens Private Limited, for manufacturing non-woven fabrics. The 74:26 JV between Arvind Ltd and OG Corporation has also entered into a technology alliance with Kureha Ltd of Japan. In technical textiles, the company already manufactures products like protective fabric and composites.
In a quote given to Business Standard, Punit Lalbhai, Executive Director of Arvind Ltd and Chief Executive Officer of Advanced Materials Division said, “This is our first foray into non-woven fabric manufacturing. Arvind intends to grow its technical textile vertical. The segment has high margins, high returns with good entry barriers. We are already manufacturing protective fabric and composites, among others in technical textiles. We are aiming for Rs 1000 crore revenue from technical textiles segment alone in next 3-4 years and non-woven will be an important filler in this.”
The new non-woven fabric manufacturing unit has started production in May with one line of needle-punching technology, with a total investment of nearly Rs 50 crore. However, according to Lalbhai, the company is targeting to reach a turnover in excess of Rs 100 crore in three years from the unit. The company is also developing a 300 acre textile hub at the plant site and most of the capacity expansion will henceforth come at this hub. 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.
According to Lalbhai, the non-wovens market is pegged anywhere between Rs 3000 crore and Rs 6000 crore and is growing at 12-15 percent rate. Within the group, the technical textile vertical is expected to grow by 40-50 percent growth rate, said Lalbhai.
“While brands and retail will continue to remain strategic focus for the company, technical textiles segment should go enjoy a 40-50 per cent growth rate. Moreover, 50-60 per cent of our technical textiles will be exported,” Lalbhai added.