< = ="http://pagead2.googlesyndication.com/pagead/show_ads.js"> Arvind has announced an equal joint venture with the B Safal Group on Tuesday for residential land development at Ahmadabad. The project will develop 1 million square feet of residential complex and is valued at Rs 225 crore after completion.

The textile major holds 600 acres of land in Ahmedabad. It has applied to the state government for two townships. The JV will develop one-third of the land held by Arvind. This deal values the entire land parcel at Rs 775 crore. Its profit after tax is seen at Rs 60 crore post the completion of the project.

Arvind's retail business is likely to grow 40% over the next 4-5 years. The retail business is spread over 8 lakh sq ft and the company is targeting an additional 2 million sq ft. FY11 sales are estimated at Rs 750-800 crore.

The recent move by the Chinese government to de-peg the yuan from the dollar revaluation will give a further fillip to the company's textile exports as Chinese exports will now become more expensive. Around 50% of Arvind's sales are exported.

In an interview to CNBC-TV18, Sanjay Lalbhai, CMD, Arvind, said that the company will monetize land worth Rs 800 crore in the next three years. "We will monetise land worth Rs 100 crore in FY11."

Lalbhai stated that the sale value of JV is seen at Rs 225 crore. "We will start selling flats in the next 4-5 months and expect an average selling price of Rs 2,300-2,400 per sq ft. Around one-third of the land will be kept back for sale after 2-3 years."

Profits from the JV will be jointly shared by Arvind and B Safal Group, he added. "The upfront cash of Rs 70 crore will be use to repay debt."

He expects sales and PAT of Rs 4,000 crore and Rs 120-130 crore in FY11.