The Hindu Business Line : Arvind Mills turns active on new joint venture

The counter, which was in a declining mode even a few weeks ago, today gained 3.25 per cent to close at Rs 46. Traded volume was more than double of the recent averages.

On the BSE, it clocked a quantity of 24.8 lakh shares and on the NSE its volume was even higher at 36.67 lakh shares.

Arvind Mills today announced formation of yet another joint venture, the third in the last nine months. The latest one is with a top Italian fashion name - Diesel.

In the new joint venture, Diesel India Fashion Arvind, the company will have a 49 per cent stake, Mr Drashan Mehta, President of Arvind Brands (now a division of Arvind Mills) and CEO of VF Arvind Brands, told Business Line.

This high-end fashion outfit would open a store each in Mumbai and New Delhi before the end of this year.

The joint venture plans to open another 15 stores in the next three years.

Earlier in a restructuring exercise, Arvind Mills took over the garments business of Arvind Brands Ltd, then a 100 per cent subsidiary, and also merged Arvind Fashions Ltd, formerly a wholly owned subsidiary, with it (with a retrospective effect from April 1, 2006).

Post-restructure, the net increase in asset valuation was Rs 24.52 crore, which has been credited to revaluation reserves in Arvind's 2006-07 accounts. Arvind Brands had spawned a 40:60 joint venture in September 2006 with VF Corp of the US.

The other recently formed 50:50 joint venture is Arya Ombitalk Radio Trunking Services. The other partner is JM Bakshi group. The radio licence of Arvind is in the process of being transferred to the joint venture. With this new outfit, Arvind will have a total of four joint ventures, the oldest being Arvind Murjani Brands, an equal partnership with Murajani, formed some three years ago.