Arvind gains on inking pact with German based PD Fiber Glass Group

Arvind is currently trading at Rs. 81.05, up by 1.15 points or 1.44% from its previous closing of Rs. 79.90 on the BSE.

The scrip opened at Rs. 80.20 and has touched a high and low of Rs. 81.90 and Rs. 80.20 respectively. So far 56,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 111.15 on 01-Nov-2011 and a 52 week low of Rs. 46.05 on 14-Dec-2010.

Last one week high and low of the scrip stood at Rs. 90.70 and Rs. 78.00 respectively. The current market cap of the company is Rs. 2,063.00 crore.

The promoters holding in the company stood at 43.42% while Institutions and Non-Institutions held 31.52% and 24.85% respectively.

Textile major Arvind has inked pact for the formation of a joint venture (JV) with the Germany based PD Fiber Glass Group for the manufacture of glass fabrics in India. The venture will cater to the requirements of a cross section of industries like Automobiles & Transportation, Wind Energy, Aerospace, Ship Building & Infrastructure etc. To sustain high levels of GDP growth, infrastructure in India will have to develop at a rapid phase.

The joint venture, Arvind PD Glass Composites, will have equity participation ratio of 51:49 from Arvind and PD Group respectively. A total investment of Rs 80 crore in a span of 5 years is planned for this initiative. The setup will manufacture 30,000 MT/year of glass fabrics. This JV is projected to achieve revenue of Rs 250 crore after the first phase of investments. The company is expecting to double this revenue to Rs 500 crore after the investments in the second phase.

The new facility will manufacture woven, bi-axial and multi-axial glass fabrics along with stitched and chopped mat-glass fabrics. A large part of the new company's output will be marketed overseas. India currently is a small market for glass fabrics, but as the Indian Aerospace, Auto and Wind energy sectors grows; the demand is likely to increase considerably.

Furthermore, India is making rapid strides in wind energy by becoming the 4th largest player in the world and is also fast becoming a hub for automobile manufacturers. These three sectors - Wind Energy, Automotive & Infrastructure - are likely to lead the growth of the glass fabric market in India.

Ahmedabad based Arvind is the flagship company of the Lalbhai group. The company is one of India's leading composite manufacturers of textiles and is also among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics. Arvind also markets branded apparels.