Arvind to expand garment business' facilities in Ethiopia and workforce

By

Isabelle Crossley

Published
Sep 13, 2018

Arvind plans to outsource all of its textile production from India to other countries so that it can focus on manufacturing clothing. The business is working on new facilities in Ethiopia and will also expand its Indian workforce, according to a report from Bloomberg.

Arvind aims to increase its garment production from 10 percent of its business to between 30 and 40 percent in order to become one of India’s largest apparel brands that will cover all price points. One of the ways the business is working to achieve this is its plan to employ between 5,000 and 8,000 female workers who will produce clothing in the business’ Jharkhand and Gujarat facilities.

The business is currently working on new production facilities in Ethiopia. By manufacturing in Ethiopia, Arvind can take advantage of Ethiopia’s duty free access to European markets. Arvind is also working to shift from mainly cotton production to manmade fibres as they are cheaper. Manmade fibres are also predominantly used in sportswear and athleisure clothing and these two sections of the market are swiftly growing in India.

The business expects its Return on Capital Employed (ROCE) to increase from the current ten percent to 18 percent by the 2022- 2023 fiscal year. Arvind currently has 20 foreign brands in India and also aims to have a stronger focus on technology moving forward.