It is only a takeover of stocks, says CEO
Arvind Lifestyle Brands, a subsidiary of Arvind Ltd., on Monday, said it had acquired the India operations of U.S.-based Hanesbrands Inc. Arvind is targeting revenues of Rs.500 crore in the next four years from the business, which includes basic and intimate apparel under Hanes and Wonderbra brands.
This acquisition follows Arvind’s purchase of Debenham’s, Next and Nautica brands in India in September 2012. Last week, it entered into an exclusive agreement to manufacture and distribute Ed Hardy apparel and accessories in India. Addressing a press conference, Sanjay Lalbhai, Chairman & Managing Director, Arvind, said, “This transaction signals our entry into the highly lucrative market of branded apparel essentials with lingerie and undergarments. This market segment is estimated at over Rs.18,000 crore, and is expected to grow over 18 per cent from thereon year-on-year.”
About 60 per cent of this market is in the organised sector.
Hanes has been in India for five years and Arvind plans to increase points of sale from 5,000 to 15,000 in three years.
Without providing details of the transaction, J. Suresh CEO & MD, Arvind Lifestyle Brands, said “There were no assets in terms of stores to take over so it was only a takeover of the stocks amounting to Rs.10-15 crore. We will continue to import Wonderbra products but plan to make Hanes locally. We plan to grow Hanes from Rs.45 crore to Rs.500 crore in four years.’’
“We have focussed on and built a strong position in the Indian men’s wear, women’s wear and kidswear segments and so it was only logical that we look at the branded apparels essentials and lingerie market as the next area of growth,” said Mr. Suresh.