Arvind eyes Rs 4000 crore revenue by FY10
Arvind Ltd is targeting revenue of Rs 4000 crore in 2009/10 and plans to sell off some of its non-strategic assets over the next three years to pay off its debts.
By PTI |
MUMBAI: Arvind Ltd is targeting revenue of Rs 4000 crore in 2009/10 and plans to sell off some of its non-strategic assets over the next three years to pay off its debts, top officials said on Monday.
The revenue growth will be led by expansion in its retail unit Megamart, they said. The company is targeting an 8-fold rise in revenue from Megamart to 10 billion rupees in the next three years.
"Most of the growth in revenue will come from Megamart and brands," Chief Financial Officer Jayesh Shah told reporters at a press conference on Monday.
Megamart's revenue for FY08 was 1.4 billion rupees. Arvind's net sales for FY08 was about 22.7 billion rupees. Brands and retail contribute around 19 percent of Arvind's annual revenue. "We see that becoming almost 40 percent in two years from now," Shah said.
The company, which earlier in the day said it had changed its name to Arvind Ltd from Arvind Mills Ltd, plans to invest about 4 billion rupees on retail expansion in the next three years, he added.
Arvind's founders plan to infuse capital of 1.88 billion rupees through the exercise of warrants, by May 2009, to recapitalise the firm, Chairman and Managing Director Sanjay Lalbhai said at the conference.
This will raise promoters' stake in the company to 47 percent from 34 percent now.
It plans to raise about 7 billion rupees to pay off some its debt through through sale of non-strategic assets, consisting mainly of 5 million square feet of land in Ahmedabad, over the next three years, Shah said.
The company's total debt stood at 14 billion rupees at the end of March 2008.
Arvind has hired consulting firm Ernst & Young as advisor for the proposed sale. E&Y is expected to submit its report within two months, Shah said.
Arvind shares ended 2.7 percent up at 51.30 rupees in the Mumbai market.
The revenue growth will be led by expansion in its retail unit Megamart, they said. The company is targeting an 8-fold rise in revenue from Megamart to 10 billion rupees in the next three years.
"Most of the growth in revenue will come from Megamart and brands," Chief Financial Officer Jayesh Shah told reporters at a press conference on Monday.
Megamart's revenue for FY08 was 1.4 billion rupees. Arvind's net sales for FY08 was about 22.7 billion rupees. Brands and retail contribute around 19 percent of Arvind's annual revenue. "We see that becoming almost 40 percent in two years from now," Shah said.
The company, which earlier in the day said it had changed its name to Arvind Ltd from Arvind Mills Ltd, plans to invest about 4 billion rupees on retail expansion in the next three years, he added.
Arvind's founders plan to infuse capital of 1.88 billion rupees through the exercise of warrants, by May 2009, to recapitalise the firm, Chairman and Managing Director Sanjay Lalbhai said at the conference.
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This will raise promoters' stake in the company to 47 percent from 34 percent now.
It plans to raise about 7 billion rupees to pay off some its debt through through sale of non-strategic assets, consisting mainly of 5 million square feet of land in Ahmedabad, over the next three years, Shah said.
The company's total debt stood at 14 billion rupees at the end of March 2008.
Arvind has hired consulting firm Ernst & Young as advisor for the proposed sale. E&Y is expected to submit its report within two months, Shah said.
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Arvind shares ended 2.7 percent up at 51.30 rupees in the Mumbai market.
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