Arvind Fashions is India’s largest casual and denim apparel company, a branded fashion house that designs, sources, markets, and retails a portfolio of licensed and owned labels. It was carved out of the textile giant Arvind Limited and listed separately in 2016, then spent the next several years ruthlessly pruning its portfolio-exiting loss-making brands, selling its value-retail chain, and divesting its beauty business-to emerge as a pure-play branded apparel company focused on five marquee brands. The recurring approach that explains everything else is an asset-light, direct-to-consumer model built around premiumisation: it licenses globally recognised names, sells them through its own network of over a thousand exclusive stores, and measures success by return on capital employed, which crossed 23% in FY26. # Business segments Five brands at different stages of maturity-a ₹2,000-crore casualwear anchor, two premium international labels, a heritage formalwear name, and a youth-focused denim brand being rebuilt for digital-all distributed through a shared network of exclusive stores and multi-brand formats. ## 1. U.S. Polo Assn.: the cash cow that anchors the portfolio **India’s largest casualwear brand, generating over ₹2,000 crore in sales by selling mid-premium clothing and accessories across every channel and category, with adjacent lines like footwear and handbags now driving nearly a third of its business.** - **The biggest brand by far** - U.S. Polo Assn. is the #1 casualwear brand in India and the single largest engine in AFL’s portfolio, hitting a net sales milestone of ₹2,000 crore in FY25. - **Licensed, not owned** - it is the official brand of the United States Polo Association, a non-profit governing body for polo since 1890, and AFL operates it in India under licence, having built the business here since 2009. - **Adjacent categories are the growth lever** - footwear, handbags, innerwear, and accessories now account for roughly 30% of U.S. Polo’s business, so growth no longer depends solely on selling more shirts and jeans. - **Bigger stores to show everything** - the brand has been opening multi-storied flagship stores of about 4,000 square feet that display the full range-men’s, women’s, and kidswear-while its average exclusive store runs at 1,200 square feet across 151 cities. - **Athleisure and sustainability add new reasons to buy** - it launched a sportswear line called ‘USPA Sports’ and a ‘Responsible Jeans’ label, keeping the brand relevant as consumer tastes shift. ## 2. Tommy Hilfiger: the premium international label **India’s #1 super-premium casualwear brand, licensed from PVH, selling at price points from ₹1,999 to nearly ₹19,000 through a tightly controlled network of 95 stores in 38 cities.** - **A global name with local pull** - founded in 1985 and present in India since 2004, Tommy Hilfiger is one of the world’s most recognised premium lifestyle brands, and AFL holds the licence to operate it here. - **Accessories stretch the brand** - beyond sportswear and denim, the brand sells an extensive range of belts, wallets, luggage, socks, perfume, handbags, and eyewear, so a customer who walks in for a shirt can leave with a complete look. - **Premium positioning means premium real estate** - its exclusive stores average 1,400 square feet and sit in high-end locations, reinforcing the brand’s status and justifying its higher price tags. - **A short GST disruption, then back to double-digit growth** - a transitory GST rate change affected the brand for a few weeks in early 2026, but it returned to double-digit growth immediately afterwards, confirming demand was intact. ## 3. Calvin Klein: the bridge-to-luxury powerhouse **India’s second-largest super-premium casualwear brand and the market leader in men’s underwear and women’s lingerie, riding premiumisation to industry-leading sell-through rates.** - **The most glamorous label in the stable** - Calvin Klein, founded in 1968 and in India since 2007, is positioned as an ultra-chic fashion label and is India's second-largest casualwear brand in the super-premium segment. - **Accessories are expanding fast** - Calvin Klein is growing its accessories line with men’s and women’s handbags, turning a clothing brand into a broader lifestyle proposition. - **Smaller stores, faster turns** - its exclusive stores average 1,000 square feet, and the brand delivers industry-leading sell-throughs, meaning stock moves off shelves quickly and discounting is minimal. ## 4. Arrow: the formalwear heritage play **A 170-year-old menswear brand that ranks among India’s top three formalwear labels, selling everything from wrinkle-free shirts to wedding collections through 190 stores across 94 cities.** - **First-mover advantage in India** - Arrow was launched in India in 1993 as the country’s first premium international brand, giving it a three-decade head start in building recognition among working men. - **Innovation in the details** - the brand sells products with detachable collars, auto-press wrinkle-free shirts, anti-UV fabric, and stain-resistant clothing, solving real wardrobe problems rather than just selling fashion. - **A demand-pull supply chain** - Arrow uses automated replenishment driven by actual sales, so stores carry fresher stock and the company avoids piling up inventory that would later need to be discounted. - **Timing, not a structural problem** - a subdued performance in early 2026 was caused by a one-time model change and a weak wedding calendar, not by any loss of brand relevance. ## 5. Flying Machine: the youth-focused denim brand being rebuilt **India’s original jeans brand, launched in 1980, now repositioned as a digital-first youth label with a fresh identity and a fast-growing online business that grew 70% in direct-to-consumer sales in the most recent quarter.** - **A 40-year legacy, now rebooted** - Flying Machine was India’s first denim brand and remains among the top three, but it has undergone a complete transformation with a new logo, new design, and new positioning aimed at Gen Z and millennials. - **Digital-first distribution** - the brand clocked 50%+ growth in its direct-to-consumer online business in Q4 FY26 and is live across multiple e-commerce platforms, with its own dedicated website planned for launch later in FY27. - **Flipkart was a partner, now it is just a channel** - AFL originally brought Flipkart in as a 31.25% minority shareholder to build online capabilities, then bought that stake back for ₹135 crores in cash in December 2025, making the brand a wholly owned subsidiary while keeping it on Flipkart’s platform. - **Priced for the mass market** - with a selling price range of ₹499 to ₹3,999 and an average store size of just 750 square feet, Flying Machine is the most accessible brand in the portfolio, designed to capture volume in Tier 3 and 4 towns through a value format called FMX. # Multi-brand retail formats **Three store formats bring all five brands under one roof, each targeting a different customer and price point-full-price premium, outlet discount, and footwear accessories.** - **Club A for the premium occasion shopper** - a super-premium format on high streets selling full-price, non-discounted merchandise from Tommy Hilfiger, Calvin Klein, U.S. Polo Assn., Arrow, and Flying Machine, with stores in Bangalore, Delhi, Surat, and Lucknow and more planned. - **Megamart for the bargain hunter** - a factory-outlet format located in outlet districts, offering discounted merchandise across all AFL brands with an outlet-appropriate look and feel. - **Stride for footwear and accessories** - a mall-based multi-brand format focused exclusively on footwear, handbags, and accessories from AFL’s brand portfolio. # Group structure and partners **A single listed entity with a streamlined structure: two key operating subsidiaries for the PVH-licensed brands and Flying Machine, after a multi-year clean-up that sold or shut every non-core business.** - **Demerged from Arvind Limited** - AFL was incorporated in 2016 and listed separately on the BSE and NSE, with Arvind Limited remaining its holding company and its registered office still at the Arvind Limited premises in Ahmedabad. - **Flying Machine is now wholly owned** - after entering into an agreement to buy back Flipkart’s 31.25% stake in Arvind Youth Brands Private Limited for ₹135 crores in December 2025, AFL will fully own the subsidiary that runs Flying Machine upon completion of the formalities, though the brand continues to sell on Flipkart. - **Everything else was sold or shut** - the ‘Unlimited’ value retail chain was sold to V-Mart for roughly ₹150 crores in FY22; the Sephora beauty business was sold to Reliance Beauty in November 2023; and dormant brands like GAP, EdHardy, and Aeropostale were discontinued, leaving a clean, five-brand portfolio.