Indian textile manufacturer Arvind Limited is preparing to open a new studio in London as part of its plan to benefit from rising international demand for garments made in India amid ongoing global supply chain diversification away from Bangladesh and Vietnam.
The London facility will display Arvind’s complete garment portfolio to international buyers and is intended to strengthen relationships with global fashion brands looking for alternative sourcing hubs. The initiative aligns with the company’s asset-light global expansion strategy ahead of the expected India-UK and India-European Union free trade agreements (FTAs).
Vice Chairman Punit Lalbhai said the company is witnessing demand from UK and European buyers that currently exceeds its garment manufacturing capacity. He explained that the new London studio would enhance Arvind’s global market presence while giving international customers direct access to its full range of apparel offerings.
Lalbhai noted that the India-UK trade agreement could be finalised soon, while the India-EU FTA is also expected to progress by the end of the year. According to him, global brands are increasingly considering India as a key sourcing destination as they seek to reduce reliance on manufacturing bases in Bangladesh and Vietnam.
Arvind said the London studio would support its strategy of building “virtual vertical supply chains,” combining its own manufacturing facilities with a network of long-term partner factories across multiple countries.
The company already collaborates with manufacturing partners in Sri Lanka and Bangladesh and now plans to strengthen these alliances while exploring selective new partnerships to address anticipated growth in demand once the trade agreements are implemented.
As part of its broader international sourcing strategy, Arvind is also increasing its partnerships in Bangladesh and Egypt, particularly in denim and fashion textile production.
The company continues to follow an investment-light growth model while expanding both garment manufacturing and textile production capabilities. Arvind plans to raise its garment manufacturing capacity by around 20% this year. It is also investing in expanding knitting operations, improving printing facilities, and carrying out debottlenecking projects across its fabrics and Advanced Materials divisions.
Lalbhai added that India’s Advanced Materials sector is projected to grow by 18% to 20%, supported by new capital investments. Arvind has allocated capital expenditure of up to Rs. 500 crore (approximately US$51.96 million) for FY27.