Textile stocks like Arvind are in focus after Reserve Bank of India (RBI) discontinued issuance of Letters of Undertaking (LoU) and Letters of Comfort for trade credit. As well, Arvind SmartSpaces, the realty arm of fashion and apparel firm Arvind, is looking to cross the Rs 1,000-crore revenue mark in the next four years.
In an interview with CNBC-TV18, Kulin Lalbhai, Executive Director of Arvind spoke about the latest happenings in his company and sector.
The 10-year old business of Arvind Smart Spaces started developing projects on Arvind land. Since last four-five years, company has become completely an independent entity developing new parcels of land, he said.
Since demerging, the company has seen a rapid growth, both toline and bottomline have grown at more than 30 percent, he added.
Next three years, the company has another 8 million square feet being developed primarily in Bangalore and Ahmedabad. “We are focused on the mid-income residential segments in these two cities and we have recently made a foray into Pune,” said Lalbhai.
The company is focused on the residential space. We are seeing a lot of traction in the mid-market space and affordable housing segment is an area we are already in, he said.
He believes that the government’s focus on home ownership will create a lot of primary demand. “We will definitely be in the affordable and the mid-income residential space,” he added.
Speaking about letters of undertaking (LoU) instrument, he said we use all kinds of ways to raise capital but the LoU instrument is negligible. So it has no impact on the company.
For full interview, watch accompanying video…
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