Arvind is going to have a onetime write-off of about Rs 35 crore of the Merchandise Exports from India Scheme (MEIS) incentives that were credited to the income earlier.
The Ministry of Textiles has issued a Notification dated January 14, 2020 withdrawing MEIS for export of garments and made-ups retrospectively from March 7, 2019. MEIS is an export incentive granted to exporters at the rate of 4% of FOB value of exports to overcome tariff and non-tariff barriers, and logistics hardships for penetration into new markets. As a result of this the company will have a onetime write-off.
Arvind is India’s largest integrated textile player and is one of the oldest and most respected groups in the Textile Business in India. The company is also one of the largest producers of denim fabrics and is supplier to a large number of fashion brands in the world.
