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Arvind Mills focuses on potential garment segment

19
Feb '07
As domestic denim prices are declining, Arvind Mills is going to concentrate on garment segment to increase its profit margin.

Company would try to capture the market of premium fabrics clients that can help in expansion of the volume.

It anticipates to extent its contribution to the segment by 30 percent of total revenue by end of 2009 fiscal.

In order to achieve the target, it plans to expand garment capacities to 42 million pieces from 14 million by 2009 fiscal.

By end of 2009 fiscal, garment operation is expected to generate revenue of 10,000 crore.

The target is bit difficult as segment has to expand at about 80 percent annually.

Increasing cost and pressure on sales would significantly reduce income from denim over next few quarters.


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