With its existing asset base already operating at 100% utilisation, the company is also exploring an asset-light route to add capacity and capitalise on the demand environment.
Gujarat-based textile major, Arvind Ltd is looking to tap a strong denim demand cycle by bringing Japanese consultants and designers on board, while exploring leased and other asset-light manufacturing capacity, as its denim business reaches an all-time high.Arvind’s denim fabric volumes rose 34% year-on-year to 17.5 million metres in the June quarter, the highest level in 16 quarters, with the company seeing strong demand visibility through the end of the year. “We see a robust demand going forward. Till the end of the year, we do not see any pressure on volumes,” Punit Lalbhai, vice-chairman of Arvind Ltd, said.With its existing asset base already operating at 100% utilisation, the company is also exploring an asset-light route to add capacity and capitalise on the demand environment. Arvind is looking at taking over non-functional assets available in the market and operating them itself, including through leased arrangements, rather than relying entirely on fresh capital-intensive capacity. “Currently, not much has happened, but in the future we are exploring those options. It is a good demand cycle and we are trying our best to take advantage of it,” Lalbhai told investors on Thursday.At the same time, Arvind is investing in product development and customer proximity to strengthen its position in the global denim market. The company has brought Japanese consultants and designers on board, with management saying the move has helped make its denim offering more premium. The company is also strengthening its global design network, with design hubs in the US and UK and plans to evaluate one or two additional locations in Europe. These hubs are intended to bring Arvind closer to customers and enable it to respond faster to changing product requirements. The strategy is helping Arvind cater to customers across geographies by offering products from different manufacturing locations and providing greater flexibility on country of origin.The company’s optimism on denim is also finding resonance with other Indian textile and apparel manufacturers. Bengaluru-based Gokaldas Exports vice-chairman and managing director Sivaramakrishnan Ganapathi said the company was seeing increased interest in Indian denim manufacturing. “The denims are dominating the scene now, so there are a lot of denim inquiries and denim business coming to India,” Ganapathi said.For Arvind, the combination of record-high denim demand, full utilisation of its existing asset base and strong visibility until the end of the year is prompting the company to look beyond conventional capacity expansion. Its plan to use leased or otherwise underutilised assets could allow it to add capacity more quickly, while investments in Japanese design expertise are aimed at moving its product portfolio further up the value chain. “Till the year end, we have very good visibility on our denim business,” an Arvind management official said.Published on August 14, 2026
