ARVIND MILLS

Presented by,

Keval Boricha 15PGP084

Indian Institute of Management Raipur

INTRODUCTION

Industry :Textile

Founded :1931

Headquarters :Ahmedabad

Employees :2500+

Business Area :Spinning, weaving, processing and garment production.

Sector :Public Sector

Our vision-

‘We will enable people to experience a better quality of life by providing enriching and inspiring lifestyle solutions’

HR VISION

‘The Foundation That Integrates Culture, Vision & Values , Creates an Environment That facilitates The Maximization of Human Potential’

INTRODUCTION

• Arvind Mills is the flagship company of the Lalbhai Group.

• We are producers of composite manufacturer of textiles with headquarters in Ahmedabad, Gujarat, India.

• India's largest denim manufacturer apart from being world’s fourth-largest producer and exporter of denim.

• In the early 1980s, the company brought denim into the domestic market, thus started the jeans revolution in India.

• Today it not only retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.

MILESTONES

• 1931 – Arvind Mills Ltd. is incorporated with share capital Rs.165000 ($55000) in Ahmedabad.

• 1980 - Arvind records highest levels of profitability. The new strategy – ‘Reno vision’, points at changing the business focus from local to global, towards a high-quality premium niche market.

• 1987 – Modernization programme to triple the production of denim cloth and to produce double yarn fabrics for exports.

• 1991 – Arvind reached 100 million meters of denim per year, becoming the fourth largest producer of denim in the world.

• 1998 – Arvind Mills emerges as the world's third largest manufacturer of denim. Arvind Mills goes live with SAP R/3 ERP package in April 1998 in their new manufacturing units.

• 2003 – `P1+` rating by CRISIL, which indicates a very strong rating for their commercial paper.

• 2005 – Arvind creates a unique one-stop shop service on a global. Arvind Mills has managed to post a profit growth in excess of 80 per cent. Arvind Mills decides to buy entire stake in Arvind Brands from ICICI Ventures.

• 2010- Arvind launches ‘The Arvind Store’

• 2011- Set up joint venture for marketing Tommy Hilfiger brand

• 2012- Signs distribution agreement with Billabong Arvind acquires India operations of Debenhams, Next, Nautica.

• 2014- Buys 49% stake in Calvin Klein in India Set up joint venture (JV) with Goodhill Corporation of Japan for launch of formal suits

MILESTONES

Business segment & structure

Our Associations

Denim

With over 100 Million denim fabric manufacturing capacity, Arvind is one of the largest producers of denim in the world.

Our customers:Miss Sixty | Diesel | Replay | Armani Exchange | Ann Taylor | Hugo Boss | Calvin Klein | Polo Ralph | A & F | Jack & Jones | Levi’s | Lee | Wrangler | Gap | Zara | Esprit | H & M | Quick silver |

Our market share in India • Arvind sold over 44 Million meters in India in FY 2014-15- a 37% rise against about15% growth in market. • With market share of over 13%, Arvind is the largest player in domestic market in India. • Arvind has about 50% market share with leading national & international brands in India

Shirting and Khakis Fabrics

SizeWith over 70 Million denim fabric manufacturing capacity, Arvind is the largestproducers of shirting & Khaki fabrics in the country.

CustomersBanana Republic | Brooks Brothers | Ann Taylor | Hugo Boss | Calvin Klein | PoloRalph | Eddie Bauer| Express | J Crew | Louis Phillip | Van Heusen | Arrow | ColorPlus | Esprit | Paul Smith | Park Avenue |

Growth • Arvind’s shirting & Khaki volume grew by 41 % in FY 2014-15 . • It expects to revenue to grow by over 20% in current FY • Arvind is planning to set up 30 Million shirting fabric capacity at a total investment of Rs. 400 cr. over next 3 years. The second 10 Million plant will commence operation in FY 2016-17.

Analysis of company’s performance

The stock market generally depicts the trend of the sentiments of people towards a company, fortunately the same has been highly appreciable for Arvind ltd.

Analysis of company’s performance

44%

31%

25%

Percentage holding

Promoters Institution Non-institution

2011-122012-13

2013-142014-15

0.00%

5.00%

10.00%

15.00%

20.00%

Return on equity

2011-12 2012-13 2013-14 2014-15

Sales (in Cr.) 3495 3876 4862 5225

500

1500

2500

3500

4500

5500

Sales (in Cr.)

Revenue (

in c

r)

Analysis of company’s performance

FUTURE GROWTH OF COMPANY

Canvas of 600 – 700 cities in India

Share of Brands & Retail as well as fabric retail expanding to 40%

To add 100 Million Meters fabric manufacturing capacity: cap ex Rs. 850 cr.

ARVND is focused on scaling up the brands business at 30% CAGR over FY13-18 fromINR15b to INR50b

Spreading into the footwear business with capital of INR 30000 crore

In FY10, the B2C business contributed 29% of total revenue, which increased to 35% inFY13. Management expects it to increase to 40% in next two years.

What Do We Offer?

Our Summer trainee program is to designed to:-

Nurture young talent

Identify young talents whom we can include in our world of future

Summer trainee program duration- 2 months- April and May Project- Trainee will be assigned Real Time business project

across business verticals. There will be a day to day project coach assigned along with a Board member as a project mentor

Profile 1: Retail Management

Stipend- Rs 50000/month Location- Mumbai / Bangalore / Delhi / Hyderabad /

Ahmedabad Other allowance- Travel allowance, Stay allowance for 1st

15 days of joining Benefits- Interns will get to work closely with the Managing

Directors of respective locations PPO opportunity- Yes (pretty high)

Profile 2 : Financial management Stipend- Rs 40000/month Location- Ahmedabad Other allowance- Travel allowance, Stay allowance for 1st

15 days of joining Benefits- Interns will get to work closely with the CFO PPO opportunity- Yes (moderately high)

Profile 3 : Operation Management

Stipend- Rs 35000/month Location- Ahmedabad Other allowance- Travel allowance, Stay allowance for 1st

15 days of joining Benefits- Interns will get to work closely with the CFO PPO opportunity- Yes (moderately high)