Arvind Plans Third Design Studio in the US
Following the establishment of design studios in London and Amsterdam, the Gujarat-based textile company Arvind is planning a third international design center in the US. By entering the US market, the company aims to enhance its global innovation abilities and improve its proximity to customers in important regions.
The suggested US studio will enhance the firm’s network of design and technical skills in key international markets, assisting in refining product development, innovation, and customer interaction, according to vice-chairman Punit Lalbhai.
"Our studio in Amsterdam and our studio in London, featuring high-caliber design and technical expertise, along with being nearer to clients, will impact our progress moving ahead."
"Currently, a third studio is being envisioned in the US, where we are boosting our capabilities to improve our innovation, design, and customer focus," Lalbhai states.
The expansion arises as Arvind aims to transcend its conventional expertise in fabric production and establish a more robust foothold in higher-value, vertically integrated garmenting, while adapting to evolving sourcing preferences of global brands. The company is experiencing heightened interest from international clients in sourcing from India after the establishment of the India-UK free trade agreement, as brands aim to diversify their manufacturing presence across different regions.
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“A lot more customers are interested in sourcing from India. Everybody is travelling to India to see how they can move some of their business here and de-risk their exposure to some of their highly indexed geographies,” Lalbhai says.
Arvind anticipates that the initial advantages of the trade agreement will begin to manifest in business during the first half of the fourth quarter, with UK business projected to be considerably greater next year. The chance is expected to be more focused on finished clothing rather than fabric, based on the sourcing tendencies of the British market.
The chance arises as Arvind is readying itself for a bold expansion of its garment operations. The company aims for approximately 15 percent growth through current brownfield opportunities, while developing a bolder growth plan of 25 percent that may be introduced in the next few quarters.
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In the coming three to four quarters, the emphasis will be on leveraging brownfield prospects and progressing one or two greenfield initiatives, according to Lalbhai. “The UK is a vertical market. Customers like to buy end products in that market and it will be more of garments,” Lalbhai says.
The Varanasi facility is anticipated to be significant in this growth. The unit will produce basics and knitted apparel, which Lalbhai noted as some of the company’s most lucrative segments. “We are making very ambitious plans on garment greenfield investments of the scale that have never been thought of at Arvind. The next three-four quarters, the objective is to maximise all the brownfield opportunities and focus on one or two greenfields that we have already sparked. That is enough to give 15 percent growth. There is a 25 percent growth model that is on the drawing board which should hopefully be launched a few quarters down,” he says.
Approximately 25 million units of essential capacity are anticipated to be added, even though these smaller items are excluded from the company’s current capacity of 50 million pieces.
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The upcoming six to eight months will concentrate on enhancing the facility. Arvind has allocated Rs.120-150 crore for garment investments in FY27 as a component of its total capital expenditure plan of Rs.450-500 crore. An additional Rs.200 crore is designated for advanced materials, while the remainder is allocated for fabric capacity and upkeep.