Arvind Mills Ltd renamed Arvind Ltd
Arvind Mills Ltd will unlock its non-strategic assets that lie in the form of its land holdings, reports Saurabh Turakhia.Updated: May 12, 2008, 20:18 IST
Arvind Mills Ltd, which has donned a new brand identity and logo and has been renamed as Arvind Ltd, will unlock its non-strategic assets that lie in the form of its land holdings.
Speaking to Hindustan Times, Karthik Krishnan, chief manager, strategy and projects, Arvind said, "Our long-term debt stands at Rs 1200 crore and short term debt at Rs 600 crore. With the sale of the three land parcels in Ahmedabad, we will reduce our long-term debt from Rs 1200 crore to Rs 500 crore over the next three years."
Sanjay Lalbhai, chairman and managing director of Arvind said, "We are planning to release about 700 acres of land that we own in Ahmedabad. We are estimating that we will get Rs 700 crore over a period of 3 years from this exercise."
The company is also getting aggressive with its value retail venture- MegaMart. Speaking to Hindustan Times, Suresh J, CEO-brands and retail, Arvind said, "We have 83 small MegaMart stores, spreading over an area of 3000 to 6000 square feet each, which will go up to 125 by March 2009. Similarly, we will add five more large format stores of MegaMart by March 2009. Right now, we have one in Chennai which spans 40000 square feet."
"We will invest Rs 80 to Rs 100 crore every year for the next three years for our MegaMart project as well as other multi-brand outlets," he added.
While the large format MegaMart stores will stock all brands, the smaller MegaMart stores will sell Arvind's private label and owned brands such as Excalibur, Flying Machine, Newport and Ruf and Tuf.
The company, whose consolidated revenues for 2007-08 stood at Rs 2665 crore is expecting to cross the Rs 4000 crore mark by 2010-11. It expects that revenue shares of its branded apparel business and retail ventures will be 18 per cent (Rs 700 crore) and 16 per cent respectively by then. The share of its fabric business, currently over 50 per cent of the consolidated turnover will go down to 45 per cent.
Arvind Ltd's shares have gained Rs 1.35 or 2.7 per cent to close the day at Rs 51.30. However, the scrip has gained Rs 9.8 or 23.61 per cent from its month-ago level. The 52 week high for the scrip was Rs 93.5 recorded on 31 December 2007.