Arvind rolls out garment manufacturing hub in Gujarat
- Published | 28 November 2018
Arvind Ltd launches its largest garment hub in Gujarat with two manufacturing facilities commencing operations at Bavla, eyes expansion.
India: Vertically integrated textile company Arvind Ltd announced the launch of its largest garment hub in Bavla, 30 km from Ahmedabad, investing INR 350 Crore that the company said would generate additional revenues of INR 1,000 Crore. This venture will have a significant impact on the Apparel market in the years to come.
As part of its expansion strategy, Arvind Ltd, the USD 1.7 billion textile-to-retail conglomerate, on Tuesday announced the launch of its largest garment hub in Gujarat with two manufacturing facilities commencing operations at Bavla near Ahmedabad. A third facility will come on stream over the next few weeks, the company said in a media statement.
These manufacturing facilities, set up with an investment of ₹350 crore, will strengthen Arvind’s position in the global textiles and garment market as an integrated fiber to fashion provider and solutions provider to global retailers and brands. These facilities will add a capacity of 3 million garments per month and generate additional revenues of ₹1,000 crore.
According to BlueWeave Consulting, Gujarat has been at the forefront of the textiles value chain. The state’s progressive textile policy has seen Gujarat become the leader in cotton production, spinning, and fabric production. Now, with a supportive garment policy, the state is poised to become a large garment hub as this part of the global textile value chain becomes large in India. Arvind is leading this movement and the commencement of operations at the new facilities in Gujarat is a significant step towards this. The textiles sector is being seen as a significant provider of employment in the near term in India as the country ramps up capacity.
According to an upcoming report by BlueWeave Consulting on “Global Apparel Market, By Product, By Category, By Distribution Channel, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the global apparel market is expected to witness a significant growth with a healthy CAGR over the next few years. Growing awareness about the latest fashion trends, along with demand for sports and fitness clothing, has driven the demand from the global apparel market. Demand for green and organic clothing has emerged as a huge opportunity for the market to grow in the future. However, the apparel market has been affected by factors such as raw material costs and affordability and availability of labor. The apparel market is mainly focused on the design and production of yarn, clothing, and its distribution. The raw materials may vary from natural to synthetic. As an integral part of the global fashion industry, the apparel industry is highly responsive to changing design trends as well as manufacturing and delivering products to wholesale and retail markets. These factors make the apparel industry highly competitive and fragmented due to the presence of several niche segments and competitors and therefore will fuel the market demand over the forecast period.