Arvind to raise Rs 700 crore over 3 years

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The Lalbhai Group-owned Arvind Mills Ltd has been renamed as Arvind Ltd. While announcing the change in the company's name and logo on Monday, CMD Sanjay Lalbhai, said that the promoters of the company will infuse Rs 188 crore equity which will take their stake from 34% to 47% in the company.

With the infusion of capital, the company will now focus on enhancing its own brands as well as growing the global brands through partnerships and increasing it presence across customer segments. Lalbhai further said, "The company will raise Rs 700 crore over three years for debt repayment. For the purpose, we will unlock the value from our non-strategic assets." The company has a land portfolio worth Rs 700 crore in Ahmedabad which could be unlocked in the future. "We have appointed consulting firm Ernst & Young to prepare a feasibility report on what kind of value can be created from the sale of the land," added Jayesh Shah, director and chief financial officer at Arvind Ltd.

Meanwhile, Arvind apparel retail business, called MegaMart is targeting an eight fold increase in its revenues to Rs 1,000 crore in three years. The new initiative of larger format stores will sell over 130 brands on discount. The first of the large format stores is currently operational in Chennai and other five stores will be opened in Pune, Hyderabad, Faridabad and Chennai by 2009. The company targets to open 30 such stores in 21 cities over next five years.