Arvind Fashions, the Bengaluru-based company known for selling popular brands such as Arrow, Tommy Hilfiger, and Calvin Klein, has set its sights on becoming a zero-debt company within the next two years. The company’s vice chairman, Kulin Lalbhai, revealed that this transformation will be achieved through increased cash flow and a strategic emphasis on franchise-based expansion.
To facilitate this financial objective, Arvind Fashions has prudently streamlined its brand portfolio, reducing it from over 20 brands to just five prominent fashion labels. Currently burdened with approximately Rs 300 crore in debt, the company’s management has declared their intention to eliminate this liability.
Arvind Fashions’ managing director and CEO, Shailesh Chaturvedi, has divulged the company’s plans to enhance its retail operations. This includes a 25% expansion in store size dedicated to each brand, enabling them to offer a wider array of products such as footwear, children’s wear, and innerwear. Additionally, Arvind Fashions has commenced a pilot project for a large retail format that will bring together all their brands under one roof.
The company’s sales performance stands strong, with brands like US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine contributing significantly to its revenue. To further stimulate growth, Arvind Fashions aims to increase sales by 12-15% annually while improving EBITDA by 100 basis points each fiscal year.
In pursuing an “asset-light model,” Arvind Fashions plans to open 150-200 exclusive brand stores annually, with a significant majority being franchise-operated. This approach will drive expansion while maintaining a tight grip on operational efficiency.
With a clear vision and a robust strategy in place, Arvind Fashions is confident in its ability to transform into a debt-free company while reinforcing its market position as a leading provider of apparel and accessories.
