Sign in | Join free

Indian company arvind to partner with chinese mill for denim

Indian company arvind to partner with chinese mill for denim Source: english.ctei.gov.cn
Date: 10-05-2012
Visits: 250
Very Poor

In a bid to cash in on the declining denim capacities in China, textile conglomerate Arvind Ltd. is set to partner with a local denim mill there to tap the Chinese market. The textile conglomerate is banking on its superior quality denim fabric to make a mark in the neighbouring country.

"We are going to partner with a denim mill in China and plan to sell our denim fabric there. Not only is our denim fabric superior in quality to that of China, it is also about 10 per cent cheaper in cost," said Sanjay Lalbhai, CMD, Arvind Ltd. Talking about the company's export plans, Lalbhai said that with the US and Europe markets not doing good in the fiscal 2011-12, the company is now focusing on newer regions like South East Asia and Brazil, apart from China.

"Exports will remain good for us. It is rather the domestic market that is a worry. However, it is an aberration. Our long term view is that the Indian domestic market will outperform exports," he added.

Internally, the company has planned an investment outlay of Rs 300 crore for expanding its brands, retail, and technical textiles business segments in the 2012-13 financial year.

"Brands, retail, and technical textiles will be the three major avenues for investment this year," said Lalbhai. Apparently, higher inventory cost had left squeezed Arvind's operating margins in its brands and retail segment. Add to that, poor domestic economy had resulted in weak retail demand in the country in last couple of quarters.
However, the company is expecting both input costs and retail demand to improve post June, said Lalbhai.

Meanwhile, Arvind Ltd., which saw its CARE rating rise from BB to A minus, is looking to bring down its debt:EBIDTA ratio to 2 in next two years from the current 2.9. "This way we expect our rating also to move up to AA," said Jayesh Shah, director and CFO, Arvind Ltd.
like 180 Unlike 20
Users Comments
No comments to display
Are you sure you want to delete this comment.
Add your comment
User Name:
Email: Will not be published
Rate This article:
Comment:
Maximum 3500 characters
Your name
Your email address
Your friend email address
  • /images/ourservices/125-600/pricetrend.jpg
  • /images/ourservices/125-600/product.jpg
  • /images/ourservices/125-600/videos.jpg
Suntex Asia Limited
32341 Users
have already joined suntexasia.com. Shouldn't you?
Full registration will provide you access to all our free services. It takes only one minute and it is free Go here
Quick registration (it's free)
Accesss to some of our free services
Select membership
Full Name
User Name
Email
Password
Enter the code
nrwep
(Note: If you can't read the letters, reload the page to generate a new one.)
terms and conditions
 
Members Login
Already registered
Email
Password
Forgot your password
golden fees
Enter your e-mail address
Choose your room