Arvind Ltd, one of the largest integrated textile, apparel and branded apparel companies, is expanding its denim manufacturing capacity to 140 million metres by setting up a plant in Bangladesh.
In a joint venture with Nitol Group of Bangladesh, Arvind Ltd will set up 30 million metres of denim manufacturing capacity over a period of three years, with a total investment of about $25 million.
Commenting on the development, Jayesh Shah, director and CEO, Arvind Ltd, said, “We look at Bangladesh as a strategic location in terms of the unique advantages it offers. Garments exported from Bangladesh do not attract any import duty, if the fabric is manufactured in the country itself.”
Bangladesh is among the fastest-growing garment markets in the world. With low cost of labour and high productivity, it is expected to continue its growth momentum. Demand for denim fabrics in Bangladesh is growing at over 25 per cent per annum and is currently at 280 million metres.
Nitol Group, which has a turnover of $100 million, will have a 20 per cent stake in the JV. Nitol Group already has a JV with Tata Group and VIP industries.
– IndiaRetailing Bureau
