1. Production And Operation Management
Presentation
on
ARVIND MILLS
Presented By:
Anshul Verma – 313
Pranjal Singh – 333
Gurjant Singh Sandhu – 328
Dering Naben - 323

2. Introduction
Type
Public (NSE, BSE)
Industry
Textiles
Founded
1931
Headquarters
Ahmedabad
Chairman & MD
Mr. Sanjay S. Lalbhai
Net income (mar’ 2013
Profit Rs. 261.22 Cr
Revenue (mar’ 2013)
Rs. 3,873.75 Cr.
Employees
25,620
Website
www.arvindmills.com

3. Textile & Apparel’s Contribution to India’s GDP

4. Market Size
India's share of global textile exports is expected to increase
from the current 4% to around 7% over the next three-years
Textile and Apparel Industry Size
India’s total textile and
apparel
industry
size
(Domestic + Exports) was
estimated to be Rs 4,18,000
crores (USD 89 billion) in
2011 and is projected to
grow at a CAGR of 9.5% to
reach Rs 10,50,000 crores
(USD 223 billion) by 2021

5. Business
 Fabric
 Denim, Voiles, Shirting, Khakis, Knitware.
 Garment Exports
 Shirts and Jeans
 Arvind Brands (Own)
 Flying Machine, Newport, Ruf & Tuf, Excalibur, Mainstream

Arvind Brands (Licenced)
 Arrow, Energie, USPA, U.S.A. 1949, Izod, Cherokee, Mossimo
 Arvind Brands (Joint Venture)
 Bridge to Luxury, Tommy Hilfiger, Lee, Wrangler

Other
 Real Estate, Telecom, Engineering, Infrastructure, Education

6. Major Players In The Industry
Company
Welspun India Ltd
Vardhman Group
Alok Industries Ltd
Business Areas
Home textiles, bathrobes, terry towels
Yarn, fabric, sewing threads, acrylic fibre
Home textiles, woven and knitted apparel fabric,
garments and polyester yarn
Raymond Ltd
Worsted suiting, tailored clothing, denim,
shirting, woollen outerwear
Arvind Mills Ltd
Spinning, weaving, processing and garment
production (denims, shirting, khakis, knitwear)
Bombay Dyeing &
Bed linen, towels, furnishings, fabric for suits,
Manufacturing Company Ltd
shirts, dresses and saris in cotton and polyester
blends
Garden Silk Mills Ltd
Dyed and printed fabric
Aditya Birla Nuvo, a diversified conglomerate of Madura Garments —lifestyle market (Louis
the Aditya Birla Group, comprising three Philippe, Van Heusen, Allen Solly, The Collective)
divisions — Madura Garments, Jayashree Jayashree Textiles —domestic linen and worsted
Textiles and Indian Rayon
yarn
Indian Rayon —viscose filament yarn
Mafatlal Industries Ltd
Shirting, poplins, bottomwear fabrics, voiles
ITC Lifestyle
Lifestyle market
Reliance Industries Ltd
Fabric, formal menswear

7. Critical Success Factor for Arvind Mills

8. SWOT Analysis Of Arvind Mills
Strengths
Opportunities
 Operational Efficiency and Fast Machines
 Price Competitiveness
 Skilled and comparatively cheap labour
 Cheap Labour
 Redefining product portfolio by increasing
the no. of brands to 120
 Debt Restructuring
 Access to Export Market
 Product Diversification
 Forward Contracts for Naphtha and
Cotton
 Greater penetration within industry
majors like Levis and Gap

9. Weaknesses
Threats
 Business Concentration leading to
increased risks
 Inability for the organization to
forecast market conditions
 Wrong Assumptions and Forecasts
 Low Market Share spread increased
global competition especially from
China
 High Set-up cost of new plant
 Inability to retain skilled personnel
 Complacency of management due
to earlier successes
 High employee iteration especially
senior skilled managers

10. Success and Failures
Success
 Strong portfolio of domestic and
international brand
Failures
 Less productive machines in process
 Presence only in big cities
 Economies of scale through
complete integration
 Not doing enough to build brand
equity
 Latest manufacturing tools
 Wrong Assumptions and Forecasts
 Wide geographical presence

11. Weakness in Operations
 Less productive machines in process
 Not doing enough to build brand equity
 Tough competition from local and international players
 Inability to keep up with the changing market demands
 Lack of new ideas

12. Recommendations
 Improve cash management and minimize borrowings
 Improve capacity utilization
 Enhance market share
 Product portfolio optimization
 Corporate Governance Measures
 Improve capital budgeting