Textile and apparel major Arvind is expecting revenues of its retail business to jump by 55-60% year on year to Rs 850 crore this fiscal, on the back of a strong growth in both its lifestyle brands business, which includes labels like Arrow, Gant, Izod, Flying Machine and Energie, and its value retail business, Megamart.
In the coming quarters, the company will be looking at extending its international presence, alongside expanding retail points domestically.
Speaking to FE, J Suresh, chief executive officer and managing director of Arvind Retail and Arvind Life Style Brands said, ?We are seeing excellent growth in both arms of the business and we expect a profitable year, with a 55-60% growth in revenues. The recent addition of brands such as Energie, is going to contribute immensely to our business.?
Energie, a premium Italian denim wear label, licensed and launched by Arvind last quarter, will contribute close to 5-6% of revenues after the addition of five new stores by the end of the year.
Charting new territories will also be major contributor to Arvind’s fortunes in the next few years.
One of the company’s owned brands Flying Machine is set for takeoff to South Africa, where Arvind sees great opportunity for the label.
Flying Machine will enter the market alongside Arrow, the international apparel line that Arvind hold’s the license for in several geographies. License for Izod, the sports wear brand from the Philips-Van Heusen house will be extended to the Middle East this year.
?International sales contribute to about 6-7% of our revenues currently and we will look to take this to 10% by 2015,? Suresh said.
In the domestic market, Suresh says expansion is on track, with exclusive brand outlets for the brands division, and Megamart stores being rolled out rapidly. With close to R25-30 crore investments in the Life Style Brands division every year, Arvind will add 30 US Polo stores by mid 2011 to the existing 17, and take the total number of Arrow stores to 130 from 102 by the fiscal end. Two Izod stores and six Gant stores will also be opened by the end of next fiscal. Megamart, with an investment of R50-60 crore, will be scaled up to 300 stores by next year. Currently there are close to 175 Megamarts spread across the country.