Arvind (company)

File:Arvind Mills Image.jpg|Arvind Mill in 1930s File:Shri Sanjay Lalbhai.jpg|Sanjay Lalbhai, the Chairman and managing director of Arvind Limited ==History and operations==

, the co-founder of Arvind Mills|292x292px • 1897: Arvind Mills started a business for sarees. • 1931: Arvind Mills Ltd was incorporated by three brothers Kasturbhai, Narottambhai and Chimanbhai. with a share capital of ₹165,000 ($2500) in Ahmedabad. The products manufactured were dhoties, sarees, mulls, dorias, crepes, shirtings, lingerie, coatings, printed lawns and voiles cambrics, twills and gaberdine. • 1934: Became established as the foremost textile units in the country. • 2014: The company published its first Sustainability Report, 'Fundamentally Right'. • 2015: partnered with USA-headquartered Invista, owner of the Lycra fibre brand to manufacture stretch denim fabric in India. • 2016: GAP joined hands with Arvind to sell apparels through NNNow.com • 2016: Arvind Fashion Brands tied up with cricket legend Sachin Tendulkar and launched True Blue, a menswear label that embodies the spirit of the global Indian. • 2016 (October) announced decision to generate about 740 crores by diluting 10% stake in its brand business arm pegging its enterprise value at 8,000 crore and same would be picked up by Multiples, the Private Equity firm founded by Renuka Ramnath. • 2017: Launched its own Ready-To-Wear brand. • October: signed a Memorandum of Understanding (MoU) with the Gujarat state government to establish a mega apparel factory in the state, a 300 crore project in Dahegam with capacity to produce over 24 million garments once fully operational. • November: India's largest textile and branded apparel player announced decision to demerge its Branded Apparel and Engineering businesses from the parent company, into the entity Arvind Fashions Limited and the shareholders of Arvind Limited would be entitled for one equity share of Arvind Fashions Limited for every five shares held by them in parent company. Engineering business would be demerged into an entity named as Anup Engineering and would be engaged in the manufacturing of critical process equipment and Shareholders of Arvind Limited will be entitled for 1 equity shares of Anup Engineering Limited for 27 shares held by them in parent company. Both the companies were planned to be listed on BSE and NSE on completion of process. • 2018 (March): Adient (NYSE: ADNT), announced the formation of Adient Arvind Automotive Fabrics a joint venture with Arvind Limited for development, manufacture and sale of automotive fabrics in India and the new company would be based in Ahmedabad, India, and would manufacture fabrics for automotive seating at a fabric manufacturing facility. ==Financial restructuring==

In the mid-1990s, the company undertook a massive expansion of its denim capacity even though other cotton fabrics were slowly replacing the demand for denim. The expansion plan was funded by loans from both Indian and overseas financial institutions. With the demand for denim slowing, the company found it difficult to repay the loans, resulting in an increased interest burden on the loans. In the late 1990s, the company encountered financial problems due to its debt burden, resulting in incurring significant losses. The company came up with a debt-restructuring plan for the long-term debts being taken up in February 2001. This complex financial restructuring exercise, which involved several domestic and international lenders, is considered to be the benchmark and a case study in India. The restructuring was overseen by Jayesh Shah, CFO, and advised on by a JP Morgan Hong Kong team, led by Ahmad Ayaz. In 2018, Arvind Ltd. demerged its branded apparel and engineering business into separate entities for enhanced focus and value addition for the shareholders of the Company. It got the nod from NCLT Ahmedabad bench for demerger in Oct 2018. Arvind Fashions, the branded apparel entity, will be scaling up existing brand portfolio and improve profitability across brands. Anveshan Heavy Engineering, earlier known as Anup Engineering, has laid down capex plans of ₹80 crore to double existing fabrication capacity of 15,000 tonnes per annum by implementing product mix. Out of the planned investment, ₹40 crore has already been invested. ==See also==