CEO Round Table one of the most significant events of the 2nd edition of India Pharma Week - CJP uploads online petition in Ram Janmabhoomi-Babri Masjid case for Peace in Ayodhya - First Trio of Trade Fairs comprising pacprocess India, indiapack and food pex India is Ready to Kick Off - Teesta Setalvad urges people to join CJP to fight against injustices - Grandest Celebration Of UBM India’s 11th Edition Of CPhI & P-MEC India Gets Underway Today At MMRDA GROUND, BKC - OSH India 2017: Enhancing safety and well-being of the Indian workforce - The ‘India Pharma Week’ returns with a week full of avant-garde events alongside CPhI and P-MEC India - The President of India, Shri Ram Nath Kovind confers National Award for Child Welfare 2017 on The Akshaya Patra Foundation - Sri Sathya Sai International Veda Conference Event organized to mark the 92nd birthday celebrations of Bhagawan Sri Sathya Sai Baba - HDFC Standard Life Insurance Company Limited listed today at NSE in Mumbai with a premium - IIFL’s 5Paisa.com becomes India’s 1st listed discount brokerage company; offers stock trading at zero brokerage flat fee of Rs 10 per trade - IndiaFirst Life launches Little Champ Plan - ANMI identifies new frontiers of growth for financial services amid a changing regulatory environment - Shri Dinabandhu Mohapatra, MD & CEO,Bank of India, announces the bank's Q2FY18 results - SRCC Children’s hospital launches Raksha Camp – Save the Little Hearts in association with Chief Minister’s Relief Fund and Tata Trusts - The Titan Raga-Masaba Collection Comprises Striking watch designs and motifs that celebrate the Modern Indian woman! - UBM India brings in the 12th edition of Food Ingredients India & Health Ingredients in Mumbai - UBM India unveils the 9th edition of India Nuclear Energy (INE) - Arvind Fashions and Anup Engineering set to become independent of parent Arvind Limited - Sanjay Lalbhai, CMD, Arvind Ltd announces Q2FY18 consolidated results for the 2nd quarter ended Sep. 30, 2017.
  Print Print |  E-mail

Arvind Fashions and Anup Engineering set to become independent of parent Arvind Limited

From L to R - Mr. Kulin Lalbhai, Executive Director, Arvind Ltd., Mr. Jayesh Shah, CFO, Arvind Ltd, Mr, Sanjay Lalbhai, CMD, Arvind Ltd and Mr. Punit Lalbhai, Executive Director, Arvind Ltd.- Photo By Sachin Murdeshwar GNS

From L to R – Mr. Kulin Lalbhai, Executive Director, Arvind Ltd., Mr. Jayesh Shah, CFO, Arvind Ltd, Mr, Sanjay Lalbhai, CMD, Arvind Ltd and Mr. Punit Lalbhai, Executive Director, Arvind Ltd.- Photo By Sachin Murdeshwar GNS

Mumbai, November 08, 2017 (GNS) :Arvind Limited, India’s largest textile and branded apparel player, announced its decision today to demerge its Branded Apparel and Engineering businesses from the parent company.

The Branded Apparel business will be demerged into the entity Arvind Fashions Limited. At 25% CAGR, the branded apparel business is one of the fastest growing apparel and accessory businesses in the country. It has a rich portfolio of international and owned brands. The portfolio of brands includes US Polo Association, Arrow, Flying Machine, Tommy Hilfiger, Gap, Calvin Klein, Hanes, Gant, Nautica, Izod, Ed Hardy, Elle, Cherokee, The Children’s Place and Aeropostale. It also owns the value chain ‘Unlimited’ and is the franchise partner of the world’s largest beauty retailer ‘Sephora’. Shareholders of Arvind Limited will be entitled for 1 equity shares of Arvind Fashions Limited for every 5 shares held by them.

The Engineering business will be demerged into an entity which will be named Anup Engineering. This business is engaged in the manufacturing of critical process equipment. Anup has been consistently growing at 25% and delivering a robust financial performance. Shareholders of Arvind Limited will be entitled for 1 equity shares of Anup Engineering Limited for 27 shares held by them.

On completion of the process, both the companies will be listed on BSE and NSE.

Commenting on the development, Sanjay Lalbhai, Chairman and Managing Director of Arvind Limited said “In last few years, Arvind has nurtured a diverse set of businesses. Two years ago, we demerged Arvind Smart Spaces as an independent company, and its performance has exceeded expectations. We are very pleased to announce that Arvind Fashions and Anup Engineering will now also pursue their independent courses. Arvind Fashions has already demonstrated an industry-leading track-record in the branded apparel and accessory space. Anup has demonstrated an impeccable trajectory on customer delight, topline growth and profitability. Financial independence will help unlock the full potential of these businesses.”

He further elaborated “This demerger frees up our resources and allows us to renew our focus on our Textiles business, which is not only our foundation but is now well-placed to achieve an accelerated growth trajectory. Over next 3-4 years, we will invest almost INR 1500 crores and transform the textile business. We will do this by focusing on three engines of growth and transformation namely Vertical integration -creating garment manufacturing to become an end-to-end solution provider and strategic supply chain partner to the world’s most successful brands and retail concepts , Next generation products – redefining textiles by focusing on path-breaking technologies and manufacturing processes like multi-functional textiles and smart-enabled wearables and Advanced Materials – enable textiles to catalyse the company’s entry into fields like human protection, industrial process, infrastructure and transportation, and thereby build a business with high entry barriers, intellectual property creation, and high returns

This focus will not only enable us to grow at an accelerated pace, but also drive better return on investments and build a business model that is future-ready.”

Metta Capital Advisors LLP acted as financial advisors to the transaction, while Walker Chandiok & Co LLP acted as independent valuers and provided the share allotment and share exchange ratios.ENDS