Arvind Mills to set up denim manufacturing plant in Bangladesh

The company has entered into a joint venture with the Nitol group of Bangladesh for setting up the 30 million metres denim manufacturing plant over a period of three years at a total investment of USD 60 million.

The Nitol group will have a 20 per cent stake in the joint venture company, a press release issued here today said.

"We shall be manufacturing high quality denim fabric to cater to the requirement of the European market. Since we are already exporting 36 million metres of denim to Bangladesh annually, we have a ready market available there," Chief Financial Officer Arvind Mills Jayesh Shah said.

Arvind reported a profit of Rs 20 crore in the first quarter of the 2010-2011 financial year, ending June. It had suffered a loss of Rs 3 crore in the corresponding period a year ago.
The company's consolidated revenue increased by 11 per cent in the first quarter of FY'11 to Rs 865 crore, up from Rs 781 crore in the corresponding period a year ago.

The company also plans to enhance its manufacturing capacity in both the denim and woven fabric segments by 16 million metres through an investment of Rs 100 crore.

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