Taking on an established player like Raymond is an ambitious plan. Especially as not all the brands it manages are profitable. Arvind has 1,300 retail outlets across the country, including its multi-brand clothing stores called Unlimited, its outlets for custom tailored products called The Arvind Store, and big brand stores for its international brands. It sells clothing under company brands like Flying Machine and True Blue. It has also tied up with large global brands like GAP, GANT, Tommy Hilfiger, Calvin Klein, Aéropostale, and Sephora to sell their products in India through standalone franchisee outlets for each of these brands. Brands and retail is the second largest business segment in the group with revenues of ₹3,852 crore in 2017-18.

Betting on technology has helped Arvind in the past. An example of success is the advanced material division which makes products for human protection, industrial use, transportation, and some projects for the armed forces that it doesn’t disclose. It is a ₹500 crore business in terms of revenue and Punit says it will reach ₹1,000 crore by FY20. Kotak Securities’ deputy vice president (research), Pankaj Kumar, sees Arvind’s technical textiles (nonwoven fabrics) business growing at a faster pace with the potential to touch ₹1,500 crore in the next four-five years. Analysts are excited about this space.

“Technical textiles have immense potential, particularly in developing countries. India currently accounts for less than 5% of the world technical textile production,” say Chhoda, Panchmatia and Sidhwa of ICICI Securities.

In his heyday, Kasturbhai Lalbhai was among the top industrialists of pre-Independence India. Though his legacy has seen its fair share of troubles, his descendants seem to have struck the right balance of experience and youth. Punit and Kulin’s disruptive ideas complement Sanjay Lalbhai’s experience. It’s a combination that’s helping the storied company move firmly into the future—even as it keeps its foot firmly planted in the present.

(This story was originally published in the November 2018 issue of the magazine)

Sanjay Lalbhai

Arvind: Stitching a new future

Phoenix rising