Arvind Mills wants to shed its textile player tag and become an aggressive player in the brands and retail space. Sanjay Lalbhai, its Chairman and Managing Director, says the growth in the retail businesses will outstrip the fabrics business in the near-term. "We are strengthening our brands and retail model to create value for stakeholders. Brand and retail business is likely to comprise 70-80% of the portfolio by 2015. We expect organised apparel in retail to grow to USD 6-7 billion by 2015. Retail sales are likely to double to Rs 1,000 crore by 2015.”


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The denim manufacturer plans to target the mass textile retail segment via Mega Mart. "We will focus on the domestic market for sustainable growth.”

According to him, the company is adding 200,000 sq ft of real estate every year to scale its retail business. "We will infuse Rs 200 crore in the retail business in the next two years. We may rope in a strategic investors for our retail business expansion and are also eyeing a foreign brand in the super premium segment."

Lalbhai expects the current fabric business to grow at 10-15% annually. "The Indian denim market is growing at 15% as compared to 4-5% degrowth globally."

Arvind Mills, he says, plans to monetise its land bank, which is valued at Rs 700 crore. "We are likely to get government approvals for land development by December 2009. This will be used for low-cost housing, residential, and commercial purposes. Three townships are in the pipeline. We are likely to bring in a developer at a later stage."

The company`s telecom subsidiary is value creating, he says. "We are leaders in data and traffic managment system. Our telecom subsidiary is seeing a 30-40% business growth."

Speaking on the road ahead for the rupee-dollar, Lalbhai says he expects the Indian unit to be volatile. "The rupee advantage is not sustainable."

I am sure it will rock in future and certenly it will be multibagger.
Key factor
1. They hv 700 cr land bank. Now they want to build township there. So earning will be 1200-1400 Cr
2. They targetted to the brand and retail. here profit margin is much better than manufacture of denim.

Risk factor :
1. Execution - they dont hv talent to build township
2. retail is very much competitive.

I am betting on it. It will give more return than other script.