“The new business environment presents new opportunities. We have looked at each business individually and adopted a strategy that best suits them respectively. Our efforts over last several years have brought us to a stage where we are ready to maximize the potential within our organization. With solutions in sight for our core business issues and tremendous growth opportunities in the new ventures we will emerge as a stronger, more competitive organization that is well-positioned to respond to and succeed in the ever-changing market place. We wanted to convey to the world this new thinking and direction at Arvind,” said Mr. Sanjay Lalbhai, CMD, Arvind Ltd.

The company will focus on enhancing its own brands as well as growing the global brands through partnerships and increasing its presence across customer segments and categories. Arvind expects a 40% CAGR in the Brands business driven by revenues from new brands such as US POLO, IZOD and Hartmarx group of brands and a 40% growth in its joint venture business. Arvind share of revenue from Branded apparel business is likely to be about Rs.700 crores in next two years time.

Arvind’s Apparel retail business, is to be focused on two segments of bridge to luxury and value retail. Value retail under the umbrella of MegaMart is targeting a 8 fold increase in revenue to Rs 1000 crores in 3 years spread over 1.9 Million square feet and over 270 doors through a combination of existing smaller format stores and the new initiative of larger format stores selling over 130 brands on discount. The first of the large format stores is operational in Chennai from January 2008 and another 5 stores in Pune, Hyderabad, Faridabad and Chennai are to be opened in 2008-09. The company targets to open 30 such stores in 21 cities over next 5 years.

The fabric business despite negative macro factors like current downturn in denim, the rising cotton & fuel prices and the appreciating rupee continues to generate positive cash accruals. The company is to realign its product portfolio and marketing approach from the existing traditional model. In the domestic market the company is going to evolve a direct fabric retailing initiative to target the premium customers in the country. In the larger industrial segment company is focusing on servicing the performance wear, work wear and industrial application fabrics. The company is also hoping to resolve the high energy cost problem with an alternative arrangement very soon.

The garment business is witnessing improved price realization, volume growth as well as profitability improvements due to productivity gains and will continue to add value to the textile business. The company is in initial stages of conceptualizing extending the garmenting expertise and marketing front end to build a buying house style operation.

To reduce the impact of high level of borrowings on the company’s profitability, Arvind is focusing on debt reduction using cash flows of fabric business as well as through unlocking of value in non strategic assets. “The company holds certain valuable but non strategic assets on one side and at the same time requires cash for its rapidly growing businesses, hence through a combination of cash flows from fabric operations, capital infusion from promoters and sale of non strategic assets we plan to raise about Rs.700 crores over 3 year to be utilized towards debt repayment” says Mr. Jayesh Shah, CFO, Arvind Ltd.

The Arvind Mills Ltd. also unveiled its new corporate identity and announced that the company has been renamed as Arvind Ltd. The new logo is an apt reflection of the company’s changed avatar. To present this new face of Arvind Mills, the company has embarked on a re-branding exercise and has roped in Bangalore based Ray+Keshavan to develop its corporate brand strategy, vision, values and design its new brand identity. All the sub-brands under Arvind will sport the new logo.

The new Arvind marque is composed of unique hand-crafted letters that reflects the unique organisation that is Arvind. Stylish, sharp but well rounded - the forms of the logotype stand for an organisation that is integrated and works across the value chain - from stylish fabrics to iconic brands.

At the same time the letterforms have an element of classicism and a sense of gravitas - symbolic of an organisation that has a rich heritage while remaining contemporary through changing times. The burgundy red also is iconic of a mature brand, its rich tones of red carry a sense of depth and more than a hint of passion that has built an institution called Arvind.

Highlighting the significance of the change in Identity, Mr. Lalbhai, said, “Over eight decades, we have changed the face of fashion by constantly evolving. As we get ready to address wider opportunities to create wealth for stakeholders, we have evolved new ways of thinking and a new direction. The new identity reflects the shift in the corporate identity from a large integrated textile player to a lifestyle solutions company and the name of the company reflects the same trust but new opportunities”.

The Brand’s Vision is to enable people to experience a better quality of life by providing enriched and inspiring lifestyle solutions. The Brand’s Essence is Enriching Lifestyles. The Brand Promise is bringing newness to consumer’s lifestyle and providing inspiring solutions to help deliver enriched lifestyle experiences to consumers. The Brand Values are Creative, proactive and effective where as the Differentiators are Collaborative relationships, people, innovations and global mindset.

About Arvind Ltd.
Established in 1931 as a global leader in the development and production of textiles, Arvind Ltd. is India’s largest integrated textile company and operates across the entire value chain from design to fabric to brands. Arvind was the first company in India to bring international brands when they brought Arrow to India. Arvind now has licensing relationships with many international brands like Arrow, GANT, Cherokee, USPA, Hart Schaffner Marx, Sansabelt, Pierre Cardin and JV with VF Corporation with brands like Lee, Wrangler, Jansport, Nautica, Kipling & Tommy Hilfiger.

In addition Arvind owns a number of successful Indian brands viz Flying Machine, Newport, Excalibur and Ruf and Tuf among others. The company also owns India’s largest value retail chain Megamart having 83 outlets in 30 towns. Recently Arvind also opened a 40,000 sq ft Megamart Outlet centre in Chennai.

The sales for the year are up by 23% at Rs.2271 crores as against Rs. 1848 crores in the last financial year. Profit after tax and before extraordinary items was up by 8% at Rs.27.36 crores compared to Rs. 25.27 crores in the previous financial year. Previous year had an extraordinary income of Rs. 94.29 crores, hence Profit after tax and extraordinary items was Rs.120 crores. The operating profit for the year at Rs.304 crores is 5% lower than the previous year figure of Rs. 321 crores. Keeping in mind the current profit levels the board of directors has not recommended any dividend for the year.

The sales during the fourth quarter stood at Rs. 665 crores as against Rs.491 crores in the corresponding quarter last year. Profit after tax is Rs. 5 crores same as in corresponding quarter last year.

Commenting on the results, Mr. Jayesh Shah, Chief Financial Officer and Director, Arvind Mills said, “While the company’s fabric business continues to maintain the current profitability despite the downturn in denim, the rising cotton & fuel prices and the appreciating rupee, the Brands and Retail businesses have been showing steady and healthy growth”.

As a strategy to tap the fast growing market for branded apparel retailing, the company is signing up licensing agreements with leading companies to bring in international brands and also build its portfolio of own brands.

The company’s first Megamart Outlet Centre launched in Chennai in January 2008 - which will also be the largest value mall in the city - housing a gamut of categories including men women & kids wear, accessories, luggage, footwear etc. from leading brands.

About Arvind Mills Ltd.: Established in 1931 as a global leader in the development and production of textiles, Arvind Mills is India’s largest integrated textile company and operates across the entire value chain from design to fabric to brands. Arvind was the first company in India to bring international brands when they brought Arrow to India. Arvind now has licensing relationships with many international brands like Arrow, GANT, IZOD, Cherokee, Pierre Cardin and Hart Schaffner Marx.

Mumbai - Arvind Brands, division of Arvind Mills Ltd. announced today that it has signed an exclusive license agreement with The Hartmarx Corporation. As a part of the agreement, Arvind Brands will have exclusive rights to design, distribute and retail in India, Hart Schaffner Marx, Pierre Cardin and Sansabelt – global brands reputed in the men’s apparel segment.

Hartmarx Corporation is America’s largest men’s tailored clothing company, catering to 40% of the tailored clothing market in US. The company currently manages more than 35 brands either owned or licensed. Focused on the young, ambitious and contemporary minded men, Hartmarx through its iconic brands like Hart Schaffner Marx, Pierre Cardin and Sansabelt offers a wide range of formal dressing for men with a classic American style. Hartmarx processes a proud tradition of product quality and innovation, backed by valued relationships with the retail partners.

The three brands - Hart Schaffner Marx, Pierre Cardin and Sansabelt will be distributed through large departmental stores and multi branded outlets.

Mr. Homi Patel, CEO of Hartmarx said, “We are extremely excited to be working with the group at Arvind Mills on the introduction of the Hart Schaffner Marx, Sansabelt and Pierre Cardin brands in India and look forward to a long and mutually beneficial relationship for both companies.”

“The tie up with Hartmarx Corporation, USA’s No. 1 tailored clothing company, will not only add strength to our portfolio but will also help us in taking a dominant position in the suits market. Arvind Brands will initially introduce 3 iconic brands in India – Hart Schaffner Marx, Pierre Cardin and Sansabelt, but the door is open to bring in many of the brands in the future from Hartmarx stable which successfully manages more than 35 brands in US. These brands reinforce our commitment to associate with world class labels that have carved a unique place in fashion history. Our decision to associate with Hartmarx Corporation in India is a meeting of minds, capabilities and objectives,” says Mr. Sanjay Lalbhai, Chairman and Managing Director, Arvind Mills Limited.

“The addition of Hart Schaffner Marx, Pierre Cardin and Sansabelt to our basket of international brands will further enhance our position in the premium apparel category. The suit segment in the Indian market is all set to explode. We would like to encash on this opportunity. Our partnership with Hart Marx will certainly help us take an aggressive stance in the men’s suits market,” said Mr. J Suresh, CEO of Arvind Brands.

Hart Schaffner Marx: The flagship brand of the Hartmarx Corporation, Hart Schaffner Marx, the classic American style has defined the standard for the professional man for 120 years since 1887. By providing quality and comfort with an unparalleled sense of style, Hart Schaffner Marx fuels confidence and ambition.

Pierre Cardin: Pierre Cardin has been one of the world’s leading fashion innovators for over 50 years and has developed a level of recognition globally that surpasses all other designers. Pierre Cardin revolutionalised the fashion business by being the first couturier to launch a ready to wear collection in 1959; applied a brand licensing system in 1960.

Sansabelt: Sansabelt (Sans, French for without), one of America’s best selling quality trouser brands that changed the way men purchased trousers. The unique patented waistband featuring an exclusive triple-zone, triple-action elastic webbing that offered Men the style and comfort made Sansabelt one of the top selling quality trouser brands in the USA, Canada and Mexico. The exclusive inner waistband feature differentiates Sansabelt from its competition.
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About Arvind Mills Ltd.: Established in 1931 as a global leader in the development and production of textiles, Arvind Mills is India’s largest integrated textile company and operates across the entire value chain from design to fabric to brands. Arvind was the first company in India to bring international brands when they brought Arrow to India. Arvind now has licensing relationships with many international brands like Arrow, GANT, Cherokee, IZOD,USPA & JVs with VF with huge portfolio of brands like Lee, Wrangler, Nautica Kipling and Jansport and JV with Tommy Hilfiger.

In addition Arvind also owns a number of successful Indian brands viz Flying Machine, Newport, Excalibur and Ruf and Tuf. Arvind pioneered India’s largest value retail chain concept through Megamart, currently operating 83 outlets in 30 towns across the country. Recently Arvind launched 50,000 sq ft Megamart Outlet Centre at Chennai, styled after outlet malls in USA.