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Arvind Fashions, the branded apparel and accessories business of Arvind, the $1.7-billion conglomerate, aims to more than double its revenue from Unlimited, its value fashion retail brand.
Betting big on the fast-growing, organised value fashion market in the country, which is expected to grow from $2 billion to $15 billion by 2023, the company expects to garner one-third of its total revenue from Unlimited at ₹2,000 crore, in the next three years.
Unlimited is a large format (8,000-10,000 sq ft) value fashion store for families, which primarily sells in-house brands such as Karigari, Anahi, Sugr, Ruggers, Excalibur, Colt, Newport, etc along with a couple of licensed brands such as Elle Studio and Cherokee. Ninety per cent of the apparel and accessories retailed at Unlimited are priced below ₹1,000 with the average price point at ₹550.
“Unlimited is one of the key drivers for our future value creation as it is the only brand in our portfolio that addresses the value fashion segment, which can take advantage of the largest growth segment in the Indian apparel market — the value fashion segment. Every other brand we have addresses the mass premium and premium segments. Unlimited currently contributes to 25 per cent of our sales. We expect it to contribute to one-third of our business in three years, at ₹2,000 crore” J Suresh, MD & CEO of Arvind Fashions Ltd, told BusinessLine.
Upbeat on growth
The value fashion market is driven by a handful of players including Max Fashion, Fbb, Reliance Trends, Pantaloons and Unlimited. Arvind entered the value fashion segment in early 2016 by re-branding its large format discount stores — Megamart to Unlimited, with a focus on value fashion. For the first two years after re-branding, the company had just 50 Unlimited stores.
“We are very bullish on the fast growing value fashion market and added another 50 stores in the last 18 months. In parallel, we also closed a lot of Megamart stores. We plan to add 30-35 Unlimited stores every year and are targeting to become a ₹2,000 crore company by 2022. We will end this fiscal year at ₹830 crore,” said Suresh. The company has 90 Unlimited stores and 10-odd Megamart stores across 60 cities.
Late last year, Arvind Ltd decided to de-merge its branded apparel and engineering businesses from the parent company. The branded apparel business will be listed as Arvind Fashions Ltd after the de-merger which is expected to come through in the first week of February.
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