Forms JV with Japanese suits manufacturing company Goodhill Corporation
Apparel and textile manufacturer Arvind announced on Wednesday its entry into the customised suiting segment in association with Japanese suits manufacturing company Goodhill Corporation. The two companies announced the formation of a joint venture in which Arvind owns 51 per cent.
The joint venture, Arvind Goodhill Suit manufacturing Pvt. Ltd., had established a plant in Bangalore with an investment of Rs.40 crore, said Kulin Lalbhai, Executive Director, Arvind. The plant, which employs about 1,000 workers and which began operations in January, at present has a capacity to produce 3.5 lakh jackets and 6 lakh trousers annually. Mr. Lalbhai said the capacity would be doubled in phase two of the project. Arvind, which employs 9,000 workers at its seven facilities in Karnataka, was planning a knitting unit in Chitradurga district and Arsikere in Hassan district, Mr. Lalbhai said.
“This venture will form the bedrock of our strategy for this sector,” he said. He said the output from the plant would be available in the domestic market and for exports. Asked about the risk of domestic sales undercutting the company’s own brands, Mr. Lalbhai said, “We will service all Indian brands, including those of our competitors.” “The suiting brand, which will prove to be disruptive in the market, would be unveiled in a few months,” he said.
Goodhill Corporation earned revenue of about 4 billion yen in 2013, said President Hideki Yoshioka.