About VardhmanAbout Vardhman

VardhmanVardhman is a major integrated textile producer in is a major integrated textile producer in India. The group was setup in 1965 at Ludhiana, India. The group was setup in 1965 at Ludhiana, Northern India. The Group portfolio includes Northern India. The Group portfolio includes manufacturing and marketing of Yarns, Fabrics, manufacturing and marketing of Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel.Sewing Threads, Fibre and Alloy Steel.

MissionMission

VardhmanVardhman aims to be world class textile aims to be world class textile organization producing diverse range of products for organization producing diverse range of products for the global textile market. the global textile market. VardhmanVardhman seeks to seeks to achieve customer delight through excellence in achieve customer delight through excellence in manufacturing and customer service based on manufacturing and customer service based on creative combination of statecreative combination of state--ofof--thethe--art technology art technology and human resources. and human resources. VardhmanVardhman is committed to be is committed to be responsible corporate citizen.responsible corporate citizen.

S P Oswal, ChairmanS P Oswal, Chairman-- Vardhman GroupVardhman Group

�� Yarns:Yarns:--Grey YarnsGrey YarnsDyed YarnsDyed Yarns

�� FabricsFabrics�� Sewing ThreadsSewing Threads�� SteelSteel�� FibreFibre

ProductsProducts

Groups of the VardhmanGroups of the Vardhman

StrengthsStrengths

�� Abundant Raw material availability that helps Abundant Raw material availability that helps company to control costs and reduces the company to control costs and reduces the leadlead--time across the operation.time across the operation.

�� Availability of low cost and skilled manpower Availability of low cost and skilled manpower provides competitive advantage to company.provides competitive advantage to company.

�� Availability of large varieties of cotton fibre Availability of large varieties of cotton fibre and has a fast growing synthetic fibre and has a fast growing synthetic fibre increase the market.increase the market.

�� company has large and diversified segments company has large and diversified segments that provide wide variety of products.that provide wide variety of products.

�� company has manufacturing flexibility that company has manufacturing flexibility that helps to increase the productivity.helps to increase the productivity.

WeaknessesWeaknesses

�� Company is highly dependent on cotton.Company is highly dependent on cotton.�� Lower productivity in various segments. Lower productivity in various segments. �� Lack of Technological Development that effect Lack of Technological Development that effect

the productivity and other activities in whole the productivity and other activities in whole value chain.value chain.

�� Unfavourable Labour laws.Unfavourable Labour laws.�� Lack of Trade membership, which restrict to Lack of Trade membership, which restrict to

tap other potential market.tap other potential market.�� Lacking to generate Economies of Scale.Lacking to generate Economies of Scale.�� Higher Indirect Taxes, Power and Interest Higher Indirect Taxes, Power and Interest

Rates.Rates.

OpportunitiesOpportunities

�� Large, Potential, Domestic and International Large, Potential, Domestic and International market.market.

�� Product Development and Diversification to Product Development and Diversification to cater global needs.cater global needs.

�� Elimination of Quota Restriction leads to Elimination of Quota Restriction leads to greater market Development.greater market Development.

�� Market is gradually shifting towards Branded Market is gradually shifting towards Branded Readymade Garment.Readymade Garment.

�� Increased Disposable Income and Purchasing Increased Disposable Income and Purchasing Power of Indian Customer opens new market Power of Indian Customer opens new market Development.Development.

�� Greater Investment and FDI opportunities are Greater Investment and FDI opportunities are available.available.

ThreatsThreats

�� Competition from other developing countries, Competition from other developing countries, especially china.especially china.

�� Continuous Quality Improvement is need of the Continuous Quality Improvement is need of the hour as there are different demand patterns all hour as there are different demand patterns all over the world.over the world.

�� Elimination of Quota system will lead to Elimination of Quota system will lead to fluctuations in Export Demand.fluctuations in Export Demand.

�� Threat for Traditional market for power loom Threat for Traditional market for power loom and Handloom products and forcing them for and Handloom products and forcing them for product diversification.product diversification.

�� Geographical disadvantages.Geographical disadvantages.�� International Labour and Environment Laws.International Labour and Environment Laws.