Textile major Arvind’s profit plummeted 15 per cent for the second quarter. Revenues witnessed a 13 per cent rise. Q2 turned out to be another challenging quarter for the industry with GST implementation impacting Arvind’s domestic textile business.
Even the consumer facing brand business was impacted in the month of July as both the wholesale and retail channels were under pressure. However, the brand business saw a strong performance in August and September leading to good growth overall.
Arvind will demerge the branded apparel and engineering businesses from the parent firm into separate listed firms. The move will help unlock the full potential of the two divisions. The apparel business will be merged with Arvind Fashions while the engineering division will be shifted to Anveshan Heavy Engineering. Demerger will free Arvind’s resources and allow it to renew its focus on the textile business, which is not only the foundation but is now well-placed to achieve an accelerated growth trajectory.
Over the next three or four years, Arvind will invest almost Rs 1,500 crores and transform the textile business. Arvind is one of India’s largest manufacturers and exporters of textile products. The company is also one of the largest producers of denim fabrics.