With a bouquet of over 21 brands, Arvind Lifestyle Brands Ltd, part of the $1 billion diversified Arvind Group, is on a rapid growth path. It is on course to profitability in 2011-2012 and hopes to achieve a turnover of Rs 1,200 crore, up from Rs 825 crore it logged the previous fiscal, according to Mr J. Suresh, Managing Director and Chief Executive Officer, Arvind Retail Brands Ltd.
“During the first half this year, the company has grown by over 50 per cent and we expect to sustain this growth during the second half of the financial year. Significantly from a phase of investments, we are on course to turning the corner and entering into profitability mode,” Mr Suresh told Business Line .
“We have worked closely with each of the brands be it Arrow, US Polo, Tommy Hilfiger, Gant and iZod. From a situation where we were loss making with a turnover of Rs 200 crore in 2005-2006, we will close this year with Rs 1,200 crore for sure, registering a growth of about 50 per cent and entering the profitability mode. The group has ambitious plans to double the turnover within couple of years and possibly make it a one billion dollar company by 2015,” he said.
Both Arvind Lifestyle Brands Ltd and Arvind Retail have been doing well. In the growth of the former, two of the major brands, Arrow and US Polo, both operated through joint venture licensee pacts, have contributed immensely, he said.
US Polo
In less than two years, US Polo would contribute over Rs 150 crore and Arrow, one of the long serving brands, Rs 350 crore. These point towards great acceptance in the market place and demand for these brands and products across age groups, he said.
Asked about the challenges of handling close to two dozen brands and the hectic pace of managing them against overlapping interests and the possibility of cannibalising some of its own brands, Mr Suresh said these are carefully thought out and the overall product attributes, packaging and presentation make a difference. “Very few realise that Arvind Brands is like HUL, which has multiple brands under its fold,” he said.