ARVIND MILLS

The Company was incorporated in 1931 as The Arvind Mills Limited and over the past eight decades Arvind has truly emerged as one of the most dependable and trusted brand name in India. Since the nature and identity of the business has been completely transformed in last 76 years, Arvind no more can be identified just as a mill, it has now more related businesses apart from only mills businesses but its name still reflects the words Mills in its original na me. The business of the Company has in recent times expanded into garment manufacturing, apparel , retailing and few other associated areas .
The Key developments of the year under review are summarized below:  Merger of Arvind Brands Limited and its subsidiaries with the Company with effect from 1st April, 2006;  Wholesale branded apparel business of erstwhile Arvind Fashions Limited has been sold to VF Arvind Brands Private Limited with effect from 31st August, 2006 for a total consideration of Rs.181.65 Crores, after making necessary provisions for claims and other contingent liabilities, the company made one time profit of Rs.100.12 Crores;  With the denim manufacturing capacity in India going up by almost 100%, the prices and volumes in domestic market are u nder severe pressure;  The cotton cost for the second consecutive year remained low and the company has also benefited from the low cost inventory it had accumulated.  The company has registered a Net Profit after Extra -ordinary Items of Rs.119.56 Crores compared to Rs.127.16 Crores in the previous financial year, a drop of 6%. Plant Locations : Naroda Road, Ahmedabad 380 025, Gujarat (Two Units) Santej, Taluka Kalol, Dist. Mehsana 382 721, Gujarat Khatrej, Taluka Kalol, Dist. Mehsana - 382 721, Gujarat Khokhara Mehmdabad, Ahmedabad 380 008, Gujarat Gut No. 172, Daravali Village, Taluka Mulshi, Dist. Pune 412 018, Maharashtra. 55, Whitefield Road, Mahadevapura post, Bangalore 560 048.

t research has decisi el i dicated tremendous growth in the  R organized retail sector in India. This sector is currentl estimated at around Rs.16000 crores with an approximate growth rate of 30%. Organized retail which is currentl onl about 3%-4% of the annual retail spend in India, is expected to rapidl gain share and grow to approximatel 1 lakh crores by year 2010.

Profit Before Tax (PBT)

 The PBT of Rs. 27 crores is 80% lower than the previous year's figure of Rs. 136 crores. This is primarily due to the impact lower denim volumes and reali ations.  Net Profit (PAT) The Profit after Tax and extraordinary items at Rs. 120 crores for the current financial year is lower by 6 %age compared to Rs.127 crores in the previous financial year.  Debt The debt of the company was Rs. 1934 crores a s opposed to Rs. 1841 crores last year. This comprised additional loans taken during the year from banks and FIs, higher utili ation of working capital credit facilities and inclusion of Arvind Brands' debt.

Garment Operations: The garment business now contributes to 15% of the Company's turnover. The turnover has increased by 17% compared to the previous financial year's figure. The growth is on account of both, better productivity in shirt operations and the addition of jeans garment operations. Shirting: The shirting business continues to be stable. The business has suffered few temporary reverses due to the sluggish post -festival retail season. The Company is focused on offering only value added and mid premium products in the shirting sphere. It has made significant investments to move towards this goal. This includes a state-of-the art printing facility that will allow it to enter the women's top wear segment.