Arvind Limited is going to separate its branded apparel and engineering businesses into two different companies.
The branded apparel business will be operational under Arvind Fashion whereas the engineering business will be taken care by Anup Engineering.
The Indian textile major has also announced that once the formation of both the company is completed, it will list the companies on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The branded apparel business is the one key money spinners for Arvind Limited. The company registered a revenue of Rs. 40.72 crores in the last fiscal year in this segment. On the other hand, the engineering business posted sales worth Rs. 5 lakh.
Sanjay Lalbhai, Chairman of Arvind Ltd. reportedly said, “This separation will help us to focus on our textile business which is already well-positioned in the market to meet the growth scale.”
Arvind operates its own menswear brand ‘Flying Machine’. Additionally, the textile company has bought India rights of various international fashion brands (like GAP, Aeropostale, GANT, Geoffrey Beene, IZOD, ED Hardy and more) over the years.
The company further plans to invest Rs. 1,500 crores in the next three to four years to further boost its textile business.