Arvind mills history
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  • 1. Arvind EAR EVENTS 1931 - The company was incorporated on 12th December, in Ahmedabad. The company manufactures cotton textiles. Products manufactured are dhoties, sarees, mulls, dorias, crepes, shirtings, coatings, printed lawns & voiles cambrics, twills gaberdine etc. count ranging from 20's to 120s are spun & the cloth width ranges from 28 to 54. 1962 - The Company entered into an agreement with TootalBroadhurst Lee Co. Ltd., of Manchester for the know-how and treatment of fabrics for crease resistance, smooth drying, etc., bearing trade marks `Tebilised Double Tested'. 1979 - Ahmedabad Laxmi Cotton Mills, Co., Ltd. was amalgamated with the Company in April. 1981 - The Company signed an agreement with Gaskiya Textile Mills Ltd., Nigeria for providing technical and managerial services for a period of five years. The Nigerian company undertook to set up a composite textile mill having 23,976 spindles and 174 Sulzer looms. 1983 - Generating set of 865 KVA was added and order was placed for another generating set of 1100 KVA. - The Company started providing technical and managerial services toGaskiya Textile Mills Ltd., Nigeria from May. 1987 - The Company took up a modernisation programme to triple the production of denim cloth and to produce double yarn fabrics for exports. - As per the directive of the High Court of Gujarat on 30th March, the cumulative preference shares of the Company were cancelled and debentures were issued.
  • 2. - 5,250-15% preference shares of Rs 100 each were converted into 13% non-convertible redeemable debentures of the face value of Rs 100 each of the aggregate value of Rs 4.81 lakhs. - 15,750-4.5% preference shares (including redeemable preference shares) were converted into 12.5% non-convertible redeemable debentures of the face value of Rs 100 each of the aggregate value of Rs 13.13 lakhs. 1988 - The new product groups identified were the Indigo dyed blue denim, high quality two-ply fabrics for exports, and special products such as buttasarees, full voils and dhoties. - During the year, the Company entered the field of telecommunication and consumer electronics business. - An agreement was entered into with NCL for marketing of the EPABX system to be produced by the Company. - The Company undertook to further expand the capacity to produce denim at the rate of 60,000 metres per day. These new production facilities for this product were formed as an export oriented unit under the name ARVIND EXPORTS. - The Company proposed to undertake projects: (i) The Video Magnetic Tape conforming to VHS standards. (ii) Manufacture of artificial leather cloth and coated fabric of premium quality. (iii) Manufacture of worsted woollen yarn and suitings, the Company obtained a letter of intent for the manufacture of this. (iv) The Company proposed to produce and market, ready made garments. - 28,00,000 No. of equity shares issued as rights in June-July, (prem. Rs 10 per share Prop. 7:10). Only 17,53,800 shares taken up. The balance 10,46,200 shares, along with 2,78,300 shares out of retainable excess subscription of 2,80,000 shares, were allotted privately. Another 1,40,000 shares offered to employees (prem. Rs 10 per share). Only 55,700 share taken up. The balance 84,300 shares were allowed to lapse.
  • 3. 1989 - An agreement was signed with Victor Company of Japan Ltd. (PVC) to get technical assistance and licence for the production and marketing of video cassettes. - With the issue of convertible debentures in August, the Company also issued 5,00,000-14% secured non-convertible debentures of the face value of Rs 100 each on rights basis in the proportion 1 debenture: 14 No. of equity shares. Only 1,40,868 debentures taken up. The Balance 3,59,132 debentures were allotted privately (2,60,000 debentures to Vijaya Bank, 73,132 debentures to UCO Bank 50,000 debentures to ICICI and 3,60,000 debentures to LIC.) The debentures shall be redeemed at the end of 7 years from the date of allotment at a premium of Rs 5 per debenture. - During August, the Company issued 14,43,750-12.5% secured fully convertible debentures of Rs 120 each of which 5,94,500 debentures were offered on rights basis in the proportion 1 debentures: 12 equity shares and 29,725 debentures to employees/workers of the Company on an equitable basis. - Of the balance 8,19,525 debentures, the following debentures were reserved for allotment on a preferential basis: (i) 80,000 debentures to LIC, GIC and UTI, (ii) 1,25,000 debentures to ICICI (iii) 40,000 debentures to HDFC, (iv) 40,975 debentures to employees/workers of the Company and (v) 1,00,000 debentures to NRIs on repatriation basis. The remaining 4,33,550 debentures were issued to the public. - The following debentures were allotted: (i) 6,83,675 debentures as rights to equity shareholders; (ii) 5,90,160 debentures to the public; (iii) 2,45,000 debentures to financial institutions (1,25,000 debentures to ICICI, 80,000 debentures to LIC, GIC & UTI, and 40,000 debentures to HDFC); (iv) 1,07,190 debentures to
  • 4. NRIs and (v) 930 debentures to employees of the Company. - Rs 40 (Part-A) of the face value of each debenture was automatically and compulsorily converted into 2 equity shares of Rs 10 each at a premium of Rs 10 per share at the end of 6 months from the date of allotment of debentures. - The remaining Rs 80 (Part-B) of the face value of each debenture was also automatically and compulsorily converted into 2 equity shares of Rs 10 each at a premium of Rs 30 per share at the end of the second year from the date of allotment of the debentures. 1990 - The Electronics Division developed a 8040 EPABX system which was undergoing prototype checks. - After receiving the approvals of the High Court of Gujarat, the management of the Nagri Mills Co. Ltd. was taken over by the Company from October. - It was proposed to modernise the existing installed capacity of 36,960 spindle and instal a denim plant to produce denim cloth at the rate of 23,000 metres per day. - The Asoka Mills, Ltd., a member of the Lalbhai Group, became a sick unit and a revival scheme was presented to BIFR. As per the scheme, the Company consented to act as a new promoter of The Asoka Mills, Ltd. 1991 - The Company proposed to set up a new composite mill with a capacity of 25,000 ring spindles, 60 airjet looms and with a modern process house to produce, both for the domestic and international markets, classical oxfords, gabardines and tussores. - The Company issued 65,44,384-12.5% secured redeemable partly convertible debentures of Rs 140/- each. - Out of the issue 62,32,746 debentures were offered on rights basis to the existing equity shareholders in the ratio of 6
  • 5. debentures for every 10 equity shares held. Additional 9,34,928 debentures were allotted to retain oversubscription. - The balance 3,11,638 debentures were offered to employees/workers of the Company (all were taken up). During August, 1894 part A debenture and 913 part B debentures were forfeited. - As per the terms of issue, part-A of Rs 105/- of each debentures was to be converted into three equity shares of Rs 10 each at a premium of Rs 25/- per share at the end of 15 months from the date of allotment. - The balance amount, i.e. part-B of Rs 35/- of each debentures, was to be redeemed at par at the end of seventh, eighth and nineth year from the date of allotment in three instalments of Rs 12/-, Rs 12/- and Rs 11/- respectively. 1992 - The Company increased the production of denim cloth by 23,000 tonnes per day by modernising the plant located at Khatraj of Ankur Textiles. - The International Finance Corporation, Washington (IFC) approved the proposal made by the Company for an investment of US $ 18 million comprising of a loan of US million and subscription to 42,50,000 No. of equity shares of the Company at a price of Rs 55 per share. - During October, the Company offered 40,32,976 zero interest secured fully convertible debentures of Rs 800 each to its shareholders on rights basis in the proportion of 1 debenture: 10 equity shares held/all were taken up). - Another 2,01,649 debentures were offered to the employees on an equitable basis (all were taken up). 11,718 debentures were forfeited. - Part A of Rs 260 of each debenture will be converted into 4 equity shares of Rs 10 each at a premium of Rs 55 per share on
  • 6. 1st April, 1993. Accordingly 168,91,628 No. of equity shares allotted. Part B of Rs 540 of each debenture will be converted into 6 equity shares of Rs 10 each at a premium of Rs 80 per share on 1st April, 1994. 1993 - The Company proposed to expand the denim manufacturing capacity by 85,00,00 metres per annum. The Company also proposed to set up a new composite mill for producing annually 120 lakh metres of high quality shirting fabrics to be marketed in the domestic as well as international markets. - The Company entered into an agreement with Lanffenmuhle of Germany, for acquiring technical knowhow to manufacture high quality denim. - During September, the Company issued 4,03,298 zero interest secured fully convertible debentures of Rs 950 each to corporate bodies, etc. on private placement basis. - Part-A of Rs 320 of each debenture will be converted into 4 equity shares of Rs 10 each at a premium of Rs 70 per share on 1.4.1994. Part-B of Rs 630 of each debenture will be converted into 6 equity shares of Rs 10 each at a premium of Rs 95 per share on 28.2.1995. - The Company issued 1,27,81,186 No. of equity shares of Rs 10 each at price per share of US $ 9.78 equivalent to Rs 305.33 in the form of GDR in the international market aggregating upto US 5 million. 1994 - The Company's operations were divided into 3 units viz., Textile Division, telecom division and garments division. The Textile Division undertook to upgrade its products international parties. The telecom division developed an innovative commercial offer for marketing its C-DO RAX equipment. The Garment Division marketed
  • 7. jeans under the brand name `Flying Machine'. The Garment division proposed to market its jeans under the brand name `Newport' in North India. - The Company, Arvind Products Ltd. and Essar Investments Ltd. jointly presented to BIFR arrangement for amalgamation of Ahmedabad Manufacturing Calico Pringing Co. Ltd., (Calico & Dla Ltd. a wholly owned subsidiary of Calico Ltd.) with Arvind Mills Ltd. 1995 - The performance of textile division was significantly affected due to an unprecedented rise in cost of cotton. - Garment division launched ready to stitch jeans pack under the brand `Ruf&Tuf'. - The company proposed to expand denim fabric capacity from 800 lakh meters to 1200 lakh meters per annum. Also proposed to establish a project to manufacture 3600 tonnes per annum knitted fabrics in technical collaboration with `Alamac' a division of West Point Stevens, Inc., U.S.A. - By the order of BIFR dated 23rd June, the scheme of amalgamation of Asoka Mills Ltd. with the Company was sanctioned effective 1st April 1994. - As per the scheme of amalgamation, the Company was to issue 3,68,284 No. of equity shares of Rs 10 each to erstwhile shareholders Asoka Mills Ltd. (AML) in proportion 1:3 for the shares held in AML. 1996 - The Company prepared a scheme of arrangement with the creditors of Nagri Mills Co., Ltd. with a view to revive and rehabilitate the unit of that company and to take over its management and control by investments in its share capital. - Rohit Mills Ltd. was merged with the Company under a scheme approved by BIFR. Directors are also considering the proposal to merge ArvindIntex Ltd. (AIL) engaged in the cotton spinning activities with the company.
  • 8. - Arvind Clothing Ltd., Arvind Fashions Ltd., Asman Investments Ltd., Arvind Products Ltd., Admirial Investments Ltd., Kailash Industries Ltd., Arvind Worldwide Inc., Arvind Worldwide (M) Inc., Arvind Overseas (M) Ltd., Big Mill Laufenmuhle GmbH are subsidiaries of the Company. - The Company undertook to set up ArvindCotspin Ltd., an export oriented unit for manufacture of high quality cotton yarn, at Kolhapur, Maharashtra. The plant was to be equipped with the state-of-the-art machinery manufactured by Rieters of Switzerland and Lakshmi-Reiters in India. - 6,91,510 shares issued to the members of Rohit Mills Ltd., on its merger with the Company. 1997 - The marketing and distribution network of Newport brand was strenthened and the relaunched `Flying Machine/Ruggers' brand were strengthened. - The Company reported a fire in the goods godown & folding packing department in Naroda road unit of the company. - 38,50,000 redeemable pref. shares allotted on private placement basis to institutional investors. - Arvind Mills Ltd. has set up the anti-piracy cell for the first time in India to curb large scale counterfeiting of their highly successful brands Ruf and Tuf and New Port jeans. - Arvind Mills Ltd, which has a exclusive technical collaboration with Virkler of US, is all set to revolutionalise the denim market, with the introduction of Speed Wash technology. The company is also in the process of launching Speed Wash denim in Mumbai and Delhi. - Arvind Mills Ltd. has adopted the franchisee system for the manufacture and distribution of Ruf and Tuf jeans. - India's largest denim manufacturer, Arvind Mills Ltd, on 21.8.97 ruled out plans to merge with Arvind Polycot, another
  • 9. unit of the parent Lalbhai Group of companies. - Arvind Fashions Ltd., a 100 per cent subsidiary of Arvind Mills, which has set up a state-of-the-art manufacturing facility in Bangalore to produce Lee jeans, is doubling its capacity to one million pairs from five lakh pairs annually beginning mid next year. - Wrinkle-free or No-Iron Cotton (NIC) shirts in 100 per cent cotton will be launched by Arvind under the Arrow brand. - Arvind Mills is setting up a new textile facility for the manufacture of shirting, knit fabric and cotton bottom-weight fabric with an investment of 0 million. - WestPoint Stevens Inc. and Arvind Mills of Ahmedabad, India, have entered into an agreement where the former will provide the latter with technical assistance and marketing expertise. - The garment business division of Arvind Mills launched `Rugger' casualwear and `New port' gaberdine jeans. - The 26 MW captive power project set up by Arvind Mills Limited has run into problems with the environmental committee set up by the Gujarat government. - The rating assigned to the bonds programme of Gujarat Industrial Investment Corporation Ltd. (GIIC) has been downgraded from A to BBB- by the Credit Rating Information Services Of India Ltd. (Crisil). - Crisil has also downgraded the fixed deposit (FD) programme of GKW Ltd. from FB to FC and the non-convertible debenture (NCD) and commercial paper programme of Arvind Mills Ltd to BBB+ and P2 from AA- and P1+, respectively. - The company has entered into a technical collaboration with Alamac Knits Inc, a subsidiary of West Point Stevens of USA, for the knits unit. 1998 - Arvind Mills, established in 1931 as a textile company, has emerged as the world's third largest manufacturer of denim.
  • 10. - Production of denim fabric at one of the units located at Arvind Mills Naroda Road factory at Ahmedabad, which was affected by a fire on January 27, has been restored to its normal capacity. - Arvind Mills Ltd. will be launching youth and kids range of garments in Lee and kids range in Ruggers this calendar year. - Arvind Mills, the leading textile manufacturing company of the country and the third largest Denim producer in the world, went live with SAP R/3 in April 1998 in their new manufacturing units in just 7 months. - The company has two brands in its wholly owned subsidiaries Arrow (premium segment shirt brand) and Lee (premium segment jeans brand). 1999 - Textiles major Arvind Mills is spinning off its textile brands and garments business into a separate company and is looking for private equity investors to take a significant stake in the garment company. - The US-based Clue Peabody & Company, the owners of Arrow brand have extended the Arrow trademark agreement for another five years with Arvind Clothing Ltd, part of the Arvind Mills Ltd. (AML). - The company has been experiencing extremely encouraging response for the Arrow and Lee brands, while the threat from the unorganised sector continues to dog the popular segment brands Newport and Ruf&Tuf. - Arvind Mills has set a two-month deadline for hiving off its garments division into a separate company and sale of its real estate in Delhi. 2000 - Crisil has downgraded the debenture issues of Arvind Mills Ltd. indicating that the instruments were in default. - Arvind Cloth Ltd, a wholly-owned subsidiary of Arvind
  • 11. Mills Ltd, has launched special shirts to mark the 150th international anniversary celebration of the `Arrow' brand. 2001 - Arvind Mills which defaulted on a 5 million floating rate note issue, has put forward a debt restructuring proposal that could significantly reduce its debt burden and sharply improve its financial health. - Shareholders of Arvind Mills has approved the firm's proposal to come out with a rights issue of equity shares worthRs 75.41 crore as well as the issue of warrants to lenders. - Dupont India Ltd has chosen Arvind Mills Ltd (AML) as an accredited mill for its Lycra Assured Programme. - Arvind Mills has posted a net loss of Rs 44.59 crore for the quarter ended September 30, 2001. 2002 -Arvind Mills Ltd has informed BSE that Mr.BalajiSwaminathan of ICICI Bank Ltd., and Mr. S. Sridhar of Export-Import Bank of India (EXIM) has been appointed as a Nominee Directors on company's Board. -Arvind Mills Ltd has informed BSE that at the board meeting of the company held on November 20, 2002, the following changes in the Company's Board of Directors have been considered. 1. The following directors have resigned Dr Prabodh M Desai Mr J C Shah Mr Shailen H Desai Mr J P Shah Mr V L Mote Mr Naishadh I Parikh 2. The following have been appointed as Directors on the Board of Directors Mr Jayesh K Shah Mr Deepak M Satwalekar Mrs Rama Bijapurkar Mr JaitirthRao 3. Mr Arvind N Lalbhai, Chairman and Managing Director of the company has resigned from the position of Managing Director but will continue as Director and Chairman of the Board of Directors of the Company. 4. Mr Jayesh K Shah has been appointed as a Wholetime Director on the
  • 12. Board of Directors of the company with his designation as Director and Chief Financial Officer. 2003 -For the fourth quarter, Arvind Mills has witnessed 280% growth in the net profit to Rs.38crs as against Rs.10cr for the corresponding period last year. -Arvind Mills Ltd has been assigned a 'P1+' rating by Crisil, which indicates a very strong rating for their commercial paper. -The Union Government refused to grant tax concession applicable under Indo-Mauritius Double Tax Avoidance Agreement to the Arvind Mill's plan to form JV with Ganesh Ltd. -ICICI Bank, one the warrant holder of Arvind Mills have executed its entitlement of its conversion of its warrants into its equity shares. -Arvind Mills Ltd informed its members that trading in Secured Redeemable Non convertible Triple plus debentures of Rs.1000 each series N3 has been suspended. -Mr.Ramnik V Bhimani, Company Secretary has been appointed as the Compliance Officer ofArvind Mills Ltd. -ICICI Emerging Sector, the private equity arm of ICICI Bank, has acquired a 54 per cent stake in the Bangalore-based Arvind Brands, the apparel arm of the Sanjay Lalbhai-promoted Arvind Mills, -Arvind Mills Ltd has informed that they have acquired 12,61,233 shares amounting to 1.56% of the total paid up capital of Arvind Products Limited. 2004 -Delist from Delhi Stock Exchange (DSE) with effect from September 2, 2004 2007 -Arvind Mills Ltd has appointed Mr. G M Yadwadkar, General Manager, IDBI, Ahmedabad as their Nominee Director on the Board of the Company in place of Mr. V K Panditw.e.f. October 25, 2007. 2008
  • 13. -Arvind Mills Ltd has informed that the name of the Company has been changed from The Arvind Mills Ltd to Arvind Ltd and a fresh Certificate of Incorporation has been issued by The Registrar of Companies, Gujarat, Ahmedabad. -Members of are hereby informed that the name of Arvind Mills Ltd shall be changed to Arvind Limited and the trading symbol of the Company be changed from ARVINDMILL to ARVIND w.e.f. July 07, 2008. 2010 - Arvind Ltd has appointed Dr.Bakul H. Dholakia as an Additional Director on the Board of the Company.