Ahmedabad-based Arvind Limited, an integrated textile and branded apparel player, is setting up a garment park in Gandhinagar, in which it would also have its own apparel manufacturing facility.
Arvind Ltd. is setting up a garment park through its subsidiary Arvind Garment Park Pvt. Ltd. at an estimated cost of around Rs. 1.5 billion, Mr. Jayesh K Shah, director and chief financial officer of Arvind, told fibre2fashion.
The company would invest another Rs. 1.25 billion to set up its own clothing unit with a capacity to produce about nine million pieces annually, he informed. The unit is likely to become operational within a year and is likely to fetch around Rs. 6 billion in revenue annually.
The garment park would have around 20 garment manufacturing units within its premises, which are expected to invest about Rs. 3 billion, Mr. Shah said. The park, expected to go operational in March-April 2015, would have capacity to earn around Rs. 15 billion, mostly through exports, he added.
A flagship company of the Lalbhai Group, Arvind reported better-than-expected earnings in the third quarter ended December 31, 2013. Helped by higher revenues in textile and retail segments, the company posted 35.56 percent year-on-year growth in its consolidated net profit at Rs. 1.02 billion in the October-December 2014 quarter.