Arvind Limited, the US$ 1.7 billion textile-to-retail conglomerate, has announced the launch of its largest garmenting hub in Gujarat, as part of its capacity expansion strategy, with two manufacturing facilities in Bavla near Ahmedabad. A third facility will commence operations over the next few weeks.
These manufacturing facilities, set up with an investment of Rs 350 crore, will further strengthen Arvind’s leadership position in the global textiles and garmenting market as an integrated fibre to fashion provider and solutions provider to global retailers and brands. These facilities will add a capacity of 3 million garments per month to the company’s current garmenting operations and generate additional revenues of Rs 1,000 crore.
These garmenting facilities will employ 12,000 people as operations reach optimal capacity. Many more ancillary jobs are expected to be created around these large-scale facilities. Textiles and garmenting sector is being seen as a significant provider of employment in the near term in India as the country ramps up its capacity in this sector. Gujarat has always been at the forefront of the textiles value chain. The state’s progressive textile policy has seen Gujarat become the leader in cotton production, spinning and fabric production. Now, with a supportive garment policy, the state is poised to become a large garmenting hub as this part of the global textile value chain becomes large in India. Arvind is leading this movement and the commencement of operations at the new facilities in Gujarat is a significant step towards this.
Applauding Arvind Limited for its forward-looking approach, Chief Minister of Gujarat, Vijay Rupani, said, “Setting up of the garmenting hub by Arvind is a progressive development for the State of Gujarat. These facilities will help in creating employment opportunities for inclusive development of the state. The State government, through the new garment policy, aims to attract Rs 1 lakh crore in investment and create 10 lakh jobs in the next five years. Our government will continue to provide support for all initiatives towards fulfilment of this goal.”
Speaking on the launch, Sanjay Lalbhai, Chairman and Managing Director of Arvind Ltd, said, “At present only 10 percent of the fabrics we produce are converted into garments. Our aim is to convert 50 percent of our fabrics into garments over the next 5 years. Bavla facilities are a step in this direction. These facilities will also contribute to the company’s foray into performance and functional wear (active wear) and synthetics. These new facilities are one of the several we are planning to create over the next few years. We are grateful to the Government of Gujarat for a favourable garment policy that has created a conducive environment for business.”
Garmenting operations are the largest employment generator in the entire textiles value chain. They also provide a high return on investment. An investment of Rs 350 crore, coupled with trained manpower is expected to provide an additional Rs 1,000 crore to Arvind’s top line from these new operations.
Arvind Ltd. is on a path to transform its textiles business by developing three large garment clusters in Gujarat, Jharkhand and Andhra Pradesh. Each of these clusters will employ over 10,000 workers. Arvind’s current manpower of over 45,000 is expected to more than double as these clusters become operational and reach optimal scale.
All these clusters are being planned in rural and semi-urban localities and will provide employment to locals in the adjoining areas. These will employ a significant number of women, thereby impacting the social and economic fabric of the regions they are coming up in. Arvind will further extend its established programs under its women empowerment, education and socio-economic development initiatives to each of the new hubs. It will also deploy its world-renowned sustainability practices across all hubs.
Arvind Ltd. recently received the approval from National Company Law Tribunal (NCLT) for its scheme of demerger of its branded apparel and engineering businesses into separate entities. Arvind Ltd plans to invest Rs 500 crore per annum for the next 4-5 years with an aim to double revenue from its textile business to Rs 12,000 crore.