Aarvee Denims exports double, profit up 46%
Aarvee is keen to scale up its exports to Rs 150 crore in 2011-12, up 39% over 2010-11, said Shah while announcing the results on Monday.
By Shramana Ganguly Mehta, ET Bureau | Updated:
AHMEDABAD: China's loss was Indian denim's gain in 2010-11. As China struggled with its cotton supplies, Ahmedabad-based Aarvee Denims and Exports Limited reported 100% jump in exports in last fiscal as heavyweight clients Walmart and VF Corporation came looking for denim. Despite the glut in the domestic market for denim fabric owing to steep prices, Aarvee sailed through last fiscal comfortably as it did not push it local buyers for growth. With 55% hike in denim fabrics in the Indian markets over the last one year, it was not comfortable for those in business. "We re-focussed on the international business that although comprise a small percent of our business, but helped us tremendously," said MD Ashish Shah.
Aarvee is keen to scale up its exports to Rs 150 crore in 2011-12, up 39% over 2010-11, said Shah while announcing the results on Monday. Exports comprise Rs 108 crore in the Rs 494 crore sales that the company reported for the last fiscal. The company reported PAT of Rs 33.44 crore, up 46% than last fiscal.
Aarvee has pumped in Rs 100 crore for the current capacity expansion of its denim plant. It plan to reach 84 million metres by the year end from 60 million metres.
The company closed down about 10 of its De Extase outlets in Mumbai and New Delhi that weren't profitable during the period. "The rentals were too high and the stores were giving us negative returns. The remaining 45 stores would however, continue to showcase our fabric strengths, rather than our retailing potential," he said.
Aarvee is keen to scale up its exports to Rs 150 crore in 2011-12, up 39% over 2010-11, said Shah while announcing the results on Monday. Exports comprise Rs 108 crore in the Rs 494 crore sales that the company reported for the last fiscal. The company reported PAT of Rs 33.44 crore, up 46% than last fiscal.
Aarvee has pumped in Rs 100 crore for the current capacity expansion of its denim plant. It plan to reach 84 million metres by the year end from 60 million metres.
The company closed down about 10 of its De Extase outlets in Mumbai and New Delhi that weren't profitable during the period. "The rentals were too high and the stores were giving us negative returns. The remaining 45 stores would however, continue to showcase our fabric strengths, rather than our retailing potential," he said.
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