Arvind CMD Sanjay Lalbhai in Mumbai on Monday. (Fotocorp)

Mumbai, May 12: Arvind Mills today announced a recast of its operations along with an image makeover that will see the company acquiring a new name — Arvind Ltd — and sporting a new logo.

Arvind, which aims to grow to a billion-dollar company by 2009-10, has revamped its strategy to create a more customer-centric business. It plans to move into the business-to-customer space with a greater emphasis on retail.

“We want to get closer to the customer with a new portfolio of fabrics and designs. We will soon be in newer markets with our fabric portfolio that will include protective and functional fibres,” said Sanjay Lalbhai, chairman and managing director of Arvind Ltd.

The company will have a three-pronged strategy to drive growth. It will rework its fabric portfolio to include both performance and protective fibres. It plans to transform itself from a pure fabric and apparel solutions company to a diversified business group with a focus on branded apparel. Further, in a major push to its retail business, Arvind will first venture into Tier II and III cities followed by large format stores in metros and a portfolio of private labels.

Arvind’s retail brand Megamart is looking to set up 250 small format stores by 2012 and 30 large outlets by 2012. Megamart also targets an eight-fold increase in revenues to Rs 1,000 crore in three years.

According to company chief financial officer Jayesh Shah, Arvind plans to raise Rs 700 crore over three years for debt repayment. The amount will be raised through a combination of cash flows from the fabric business, capital infusion from promoters and the sale of non-strategic assets.

“There are a number of assets on our accounts that are non-core in nature and we are looking at unlocking value from these non-core assets,” Lalbhai added.