Arvind Ltd. Eyes 25% Garment Growth

Arvind Ltd. is contemplating a significant expansion of its garment business, with a strategic model designed to accelerate growth to 25%, up from the current 15%. The company is evaluating large greenfield investments on a scale previously uncharted for Arvind, alongside efforts to enhance capacity at existing facilities in the upcoming quarters.

Arvind's vice-chairman, Punit Lalbhai, indicated that a 25% garment growth model is under development and could be implemented in a few quarters. However, the company prioritizes establishing a consistent execution record at the 15% growth level before escalating expansion plans.

In the short term, Arvind's focus for the next three to four quarters will be on maximizing brownfield expansion opportunities and advancing one or two greenfield projects. This approach aims to support its existing 15% growth ambition, with accelerated expansion contingent on confidence in executing at a larger scale.

The company is also working to increase the garment division's contribution to its integrated textile business. Investments are being made across denim, knits, and essentials, particularly in segments that combine fabric manufacturing with garment production for a comprehensive offering to global clients.

Arvind's garment division reported Rs 577 crore in revenue during the September quarter, with volumes exceeding 11 million pieces. The company is currently expanding through a mix of brownfield investments and selective greenfield projects. Its Varanasi garment manufacturing facility's Phase I, involving an investment of approximately Rs 75 crore, has recently been commissioned, with potential for Rs 250 crore annual revenue.

For FY27, Arvind has allocated Rs 120-150 crore of its total capital expenditure (over Rs 500 crore) to its garments segment. The company is also building a multi-country manufacturing network, with garment conversion operations initiated in Bangladesh and denim deliveries expected from Egypt soon. This strategy aims to provide greater flexibility in serving international customers and adapting to changing sourcing requirements.