Textile major demerges apparel, engineering biz

The Branded Apparel business will be demerged into the entity Arvind Fashions Limited. At 25% CAGR, the branded apparel business is one of the fastest growing apparel and accessory businesses in the country.

It has a rich portfolio of international and owned brands. The portfolio of brands includes US Polo Association, Arrow, Flying Machine, Tommy Hilfiger and Gap. It also owns the value chain ‘Unlimited’ and is the franchise partner of the world’s largest beauty retailer ‘Sephora’. 

Shareholders of Arvind Limited will be entitled for 1 equity shares of Arvind Fashions Limited for every 5 shares held by them. The Engineering business will be demerged into an entity which will be named Anup Engineering. This business is engaged in the manufacturing of critical process equipment. 

Anup has been consistently growing at 25% and delivering a robust financial performance. Shareholders of Arvind Limited will be entitled for 1 equity shares of Anup Engineering Limited for 27 shares held by them.

On completion of the process, both the companies will be listed on BSE and NSE. Sanjay Lalbhai, CMD, Arvind Ltd, said “In last few years, Arvind has nurtured a diverse set of businesses. 

Two years ago, we demerged Arvind Smart Spaces as an independent company, and its performance has exceeded expectations. We are very pleased to announce that Arvind Fashions and Anup Engineering will now also pursue their independent courses.” 

He elaborated “This demerger frees up our resources and allows us to renew our focus on our Textiles business, which is not only our foundation but is now well-placed to achieve an accelerated growth trajectory.” 

“Over the next 3-4 years, we will invest almost Rs 1,500 cr and transform the textile business.  We will do this by focusing on three engines of growth and transformation namely vertical integration, next generation products and advanced materials.”