Arvind mulls foray into real estate

14 May '07

1 min read

Arvind Mills, the Rs1,700 crore-textile major is under pressure due to 75 percent dip in its net profit for the fourth quarter ended March 2007 mainly attributed to lower denim sales.

To recoup this loss, the leading denim maker plans to develop 750 acres land in its possession at Santej, Ahmedabad, for commercial use like retailing.

Around 300 acres of land may be put to use for this purpose while capitalizing on the current rising real estate prices in Ahmedabad, by next year.

Slack in the denim markets have affected the performance of the company and led to erosion of its top line also.

Arvind Mills, is one of the largest integrated textile players in the country and is a major exporter of denim to the EU market. But for last one year, suppliers from Turkey have literally taken over the markets there, overwhelming supplies from Asian and Indian companies like Arvind.

Analysts consider that Arvind Mills needs to reorient its markets to boost revenue and developing part of its landed assets for commercial use, will definitely improve the bottomline.

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