Integrated textiles player Arvind Limited on Tuesday said it has commissioned one of the largest garmenting facilities in the country at Bavla, near Ahmedabad.
Aimed at strengthening its positioning in garmenting, the three manufacturing facilities in Bavla near Ahmedabad are set up with a combined investment of Rs 350 crore, which will be implemented in phases over the next few of years.
The new facilities, which will have peak capacity of 36 million pieces a year or 3 million pieces a month, will generate additional revenues of Rs 1,000 crore for Arvind, the company informed here.
Sanjay Lalbhai, Chairman and Managing Director, Arvind Ltd, said, "At present only 10 per cent of the fabrics we produce are converted into garments. Our aim is to convert 50 per cent of our fabrics into garments over the next 5 years."
The Bavla facilities, Lalbhai added, "..will also contribute to the company’s foray into performance and functional wear (active wear) and synthetics."
"These new facilities are among the several we are plan to create over the next few years," he added.
Workforce
Last year in October, the company had inked an investment intention to set up a garmenting hub near Ahmedabad with an approximate investment of Rs 300 crore.
"Setting up of the garmenting hub by Arvind is a progressive development for the State of Gujarat. These facilities will help in creating employment opportunities for inclusive development of the State. The State government, through the new garment policy, aims to attract Rs 1 lakh crore in investment and create 10 lakh jobs in the next five years," said Rupani in a joint statement released after a meeting with the business house on Tuesday in Gandhinagar.
The garmenting facilities will employ 12,000 people - mostly tribal women as operations reach optimal capacity.
Garmenting operations, considered to be the largest employment generator in the entire textiles value chain, also provide a high return on investment.
On a path to transform its textiles business by developing three large garmenting clusters each in Gujarat, Jharkhand and Andhra Pradesh, Arvind Limited looks to more than double its current workforce of about 45,000 at optimal operational levels of these clusters.
All these clusters are being planned in rural and semi-urban localities and will provide employment to locals in the adjoining areas.
Demerger
The announcement comes ahead of company's planned demerger of its branded apparel and engineering businesses into separate entities. Post demerger, Arvind has laid down plans to invest Rs 500 crore per annum for the next 4-5 years with an aim to double revenue from its textile business to Rs 12,000 crore.
Arvind Limited shares ended positive on the National Stock Exchange (NSE) to close at Rs 314.50 with gains of over 2 per cent.