Indian textile major Arvind Limited is set to launch a new studio in London as part of its strategy to capitalise on growing global demand for India-made garments amid ongoing supply chain diversification away from Bangladesh and Vietnam.
The London studio will showcase the company’s entire garment collection to international buyers and is expected to strengthen its engagement with global brands seeking alternative sourcing destinations. The move forms part of Arvind’s broader investment-light strategy to build a global sourcing and manufacturing network ahead of the proposed India-UK and India-EU free trade agreements (FTAs).
Vice Chairman Punit Lalbhai said demand from buyers in the UK and Europe was exceeding the company’s existing garment manufacturing capacity. He stated that the London studio would help Arvind expand its presence in international markets while enabling buyers to access its complete garment portfolio.
According to Lalbhai, the proposed India-UK FTA could materialise shortly, while the India-EU agreement may come into force by the end of the year. He noted that international brands were increasingly viewing India as a preferred sourcing destination as part of efforts to reduce manufacturing dependence on Bangladesh and Vietnam.
Arvind said the London studio would support its strategy of creating “virtual vertical supply chains” by integrating its own manufacturing operations with long-standing partner facilities across different geographies.
The company already works with strategic manufacturing partners in Sri Lanka and Bangladesh and is now looking to deepen those relationships while adding select new partnerships to cater to expected demand growth once the FTAs are implemented.
In addition, Arvind is expanding its partnerships in Bangladesh and Egypt, including in denim and fashion textiles manufacturing, as part of its wider global sourcing strategy.
The company is pursuing an investment-light expansion model while continuing to scale its garmenting operations and textile manufacturing capabilities. Arvind said it plans to increase garment manufacturing capacity by 20% this year. The company is also expanding knitting capacity, enhancing printing capabilities and undertaking debottlenecking capital expenditure across its fabrics and Advanced Materials businesses.
Lalbhai stated that the Advanced Materials segment in India was expected to grow by 18%–20%, supported by fresh capital investments. Arvind has earmarked capital expenditure of up to Rs. 500 crore (US $51.96 million) for FY ’27.
Bharat Tex Special Report 2026 
