SRV ARCHANA

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A

SEMINAR REPORT AND VIVA

ON

ARVIND MILL TEXTILE INDUSTRY

Submitted in partial fulfillment for the award of the degree

Master of Business Administration

Chhattisgarh Swami Vivekananda Technical University, Bhilai

SUBMITTED TO: SUBMITTED BY:MR.MAHENDRA IKHAR ARCHANA BHANDARI

MBA 3rd SEM

Shri Shankaracharya Institute of Technology and ManagementJunwani, Bhilai (C.G.) 490020


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INDEX

1. Introduction 3-4

2. Sector synopsis..5

3. History and operation6-9

4. Arvind product .10-13

5. Organization structure.14-17

6. Enriching lifestyle..18

7. Brand of Arvind mill..19-20

8. Past and the future opportunities. 21-23

9. Subsidiaries and outlook.24-25

10 Arvind mill strategy26

11 Arvind mill new product27-31

12. Conclusion..32


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INTRODUCTION

OF

ARVIND MILLS TEXTILESECTOR

Arvind Mills was incorporated on 12th December June 1931, by Sanjay Lalbhai's

grandfather, Kasturbhai Lalbhai, and his two brothers, Narottam and Chimanbhai, in

Ahmadabad. When Sanjay Lalbhai took over the reins in 1975, Arvind Mills was at the

crossroads.

By the late 1990s, Arvind Mills was the third largest manufacturer of denim in the world,

with a capacity of120 million meters. Therefore, in the early 1990s, Arvind Mills initiated

massive expansion of its denim capacity. With the best of technology and business

acumen, Arvind has become a true Indian multinational, having chosen to invest

strategically, where demand has been high and quality required has been superlative.

Today, the Arvind Mills Limited is the flagship company of Rs.20 billion (US$ 500

million) Lalbhai Group. In the regular changing scenario of fashion, company has

maintained its focus on its core product which gives an upper hand in the competition

through the world. With its presence across the textile value chain, the company

endeavors to be a one-stop shop for leading garment brands.Forevision and

Technology has brought Arvind to be one of the top three producers of Denim in the

world, and on its way becoming the Global Textile Conglomerate, Arvind is already

making its presence felt in Shirtings, Knits and Khakis fabrics apart from being all set to

create ripples in the ready to wear Garments world over.


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SECTOR SYNOPSIS

With a total market size (2004-05) of US$ 38 billion, the textiles domestic market

Comprises US$ 25 billion and exports US$ 13 billion.

The Indian textiles sector has a strong contribution to the Economy.

14 per cent contribution to industrial production .

4 per cent contribution to GDP

16 per cent contribution to export earnings

Direct employment to more than 35 million people

The textile industry functions in the form of clusters (roughly 70 in number) across

India, producing 80 per cent of the countrys total textile. It is diverse, with the hand-

spun and hand woven sector at one end of the spectrum, and the capital intensive,

sophisticated mill sector at the other.


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HISTORY ANDOPERATION

Arvind Mills was established in 1931. It was founded by the three brothers Kasturbhai

Lalbhai, Narottambhai Lalbhai and Chimanbhai Lalbhai one of the leading families of

Ahmadabad.

1931 Arvind Mills Ltd. is incorporated with share capital Rs.2525000 ($55000)

in Ahmadabad. Products manufactured are dhoties, sarees, mulls, dories,

crepes, shirtings, coatings, printed lawns & voiles cambrics, twills gaberdine etc .

1987 The Company took up a modernisation programme to triple the

production of denim cloth and to produce double yarn fabrics for exports. The

new product groups identified were the indigo dyed blue denim, high quality two-

ply fabrics for exports, and special products such as butta sarees, full voils and

dhoties.

1991 Arvind reached 100 million meters of denim per year, becoming the fourth

largest producer of denim in the world.

1992 The Company increased the production of denim cloth by 23,000 tons per

day by modernizing the plant located at Khatraj of Ankur Textiles .

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 meters of high quality shirting

fabrics to be marketed in the domestic as well as international markets.


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1994 The Company's operations were divided into 3 units viz., Textile Division,

telecom division and garments division.

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`.

1997 The marketing and distribution network of `Newport` brand was

strengthened and the relaunched `Flying Machine' and 'Ruggers` brand were

strengthened.

y

The Company reported a fire in the goods godown & folding packing

department in Naroda Road unit of the company.

y Arvind Mills sets up the anti-piracy cell for the first time in India to curb large

scale counterfeiting of their highly successful brands Ruf & Tuf and Newport

jeans.

y Arvind Mills adopts the franchisee system for the manufacture and distribution

of Ruf and Tuf jeans.

y Arvind Fashions, doubles its capacity in the state-of-the-art manufacturing

facility in Bangalore to produce Lee jeans.

1998 Arvind Mills emerges as the world's third largest manufacturer of denim.

1999 Arvind Mills sets a two-month deadline for hiving off its garments division

into a separate company and sale of its real estate in Delhi.

2000 CRISIL downgrades the debenture issues of Arvind, indicating that the

instruments were in default.


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2001 Arvind Mills defaults on a $125 million floating rate note issue and puts

forward a debt restructuring proposal that could significantly reduce its debt

burden and sharply improve its financial health.

Arvind Mills posts a net loss of Rs 44.59 cror for the quarter ended September 30,

2001.

2003 For the fourth quarter, Arvind Mills witnesses 280% growth in the net

profit

Arvind Mills Ltd is assigned a `P1+` rating by CRISIL, which indicates a very strong

rating for their commercial paper.

2004 Company turns itself around showing remarkable improvement in

financial performance.

2005 For the fourth quarter in a row, Arvind Mills has managed to post a profit

growth in excess of80 per cent.


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BOARDOFDIRECTORS

CHAIRMAN AND MANAGING DIRECTOR

Mr. Sanjay S. Lalbhai is the Chairman and Managing Director of the Company. He is a

Science Graduate with a Master's degree in Business Management. He has been

associated with the Company for more than 30 years. He also holds directorships in

Arvind Spinning Ltd., Mauritius, Amol Decalite Limited, Torrent Pharmaceuticals

Limited, Arvind Worldwide Inc., USA, Arvind Worldwide (M) Inc. and Arvind Overseas

(M) Ltd.

DIRECTORANDCHIEFFINANCIALOFFICER

Mr. Jayesh K. Shah is a Whole time Director with the designation of Director and Chief

Financial Officer of the Company. He is a Commerce Graduate and a Chartered

Accountant and has been with the company for more than 23 years. He has a

distinguished academic career and extensive administrative, financial, regulatory and

managerial expertise. He also holds directorships in various companies.


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ARVINDPRODUCTS

TEXTILES / YARNS / GARMENTS

The Arvind Mills Limited

The Arvind Products Limited

OTHERS

Atul Limited

Amol Dicalite Limited

Anup Engineering Limited

A) ARVIND MILLSLIMITED

The Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931.

With the best of technology and business acumen, Arvind has become a true Indian

multinational, having chosen to invest strategically, where demand has been high and

quality required has been superlative. Today, The Arvind Mills Limited is the flagship

company of Rs.20 billion (US$ 500 million) Lalbhai Group.Arvind Mills has set the pace

for changing global customer demands for textiles and has focused its attention on

select core products. Such a focus has enabled the company to play a dominant role in

the global textile arena. With its presence across the textile value chain, the company

endeavors to be a one-stop shop for leading garment brands.Forevision and

Technology has brought Arvind to be one of the top three producers of Denim in the

world, and on its way becoming the Global Textile Conglomerate . Arvind is already

making its presence felt in Shirtings, Knits and Khakis fabrics apart from being all set to

create ripples in the ready to wear Garments world over.


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B) ARVINDPRODUCTSLIMITED

The company is a subsidiary of The Arvind Mills Limited. The principal business

segments of the company include manufacturing and marketing of Voiles fabrics,

Bottom weight fabric (khakis) and Yarn. The company operates through its divisions via:

Arvind Intex (with both ring and open end yarn manufacturing under one roof), Arvind

Cotspin (manufacturing 100% cotton yarn and double yarn in a wide range of counts

and varieties) and Ankur Textiles

OTHERS

A) ATULLIMITED

The Rs.600 crore Atul Products, set up in 1947, is one of the Asia's largest and

greenest chemical complexes. The company has grown to become India's largest

dyestuffs manufacturer, making and marketing over 250 varieties of chemical and

intermediates, from basic commodity chemicals to specialty intermediate required for

the agrochemical, defense, dyestuff, leather, paper, pharmaceutical and textile

industries. Atul exports to more than 50 countries.

B)AMOLDICALITELIMITED

A group company with the business ranging from Textile clothing to Filter Aids to Perlite

Products.


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C)ANUPENGINEERING LIMITED

It is one of the leading Engineering companies engaged in manufacturing process

equipment for Chemicals, Refineries, Petrochemicals, Pharmaceuticals, Fertilizers,

Drugs and Allied Industries. The company is equipped with Laboratory to carry out

various destructive and non-destructive tests apart from an independent quality control

department


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ARVINDINNOVATION

Arvind mill has a strong Research and Development focus on process improvement,

cost reduction and new product development. This is evident in the fact that Arvind mill

continuously modifies its production process to enhance flexibility on the use of various

types and quality of cotton. To further meet customer needs, Arvind mill has also

introduced a new dyeing and processing method for denims.

State-of-the-art technology and equipment have made Arvind mill one of the top three

producers of denim in the world, paving the way for the Company to emerge as a global

textile conglomerate. This cutting edge position comes to Arvind mill courtesy

technologies such as Open-end Spinning, Foam Finishing, Mercerizing, Slasher-dyeing,

Rope-dyeing, Air-Jet, Projectile and Wet Finishing. Its only natural that Arvind mill

quality fabrics are in high demand in the markets of Europe, US, West Asia, the Far

East and Asia Pacific.


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ORGANISATIONOF ARVIND MILL

HUMANRESOURCESHuman Resources for a business enterprise needs a conceptual outlay to enable

business managers to identify, plan and implement planning for manpower.

Fundamentally, business situations have changed the world over. The rise of the

intellect has been imminent. Human resource planning can no longer confine itself to

the traditional sources for hiring and retaining. The human resources of today see their

roles having changed from that of a doer to that of a thinker and on most occasion a

thinker doer.

HUMANRESOURCEVISION

Be The Foundation That Integrates Culture, Vision & Values , Creates an Environment

That facilitates The Maximization of Human Potential.

PHILOSOPHY

WE BELIEVE:

In people and their unlimited potential.

In content and focus in problem solving

In teams for effective performance.

In intellect & its power.


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WEENDEAVOUR

To select, train and coach people to obtain higher responsibilities

To nurture talent to build leaders for tomorrow's corporation.

To reward, celebrate and activate all intellectual business contributions

WEDREAM

Of excellence in all endeavors.

Of mutual benefit and prosperity.

Of making the world a better place to live in.

We Make Things Happen.

FINANCE

Arvind Mills is acclaimed in the Indian corporate field for its financial skills. Be it the

phase of rapid growth or downturn; the company has demonstrated swift, sharp and

robust financial acumen to navigate the Company through different phases of economic

cycles. Arvind Mills was the first Textile Company from India to issue GDRs in the year

1992-93. Highly complex financial restructuring exercise involving more than 80

domestic and international lenders which the Company implemented following the major

downturn in the business cycle during year 2000-2002 is considered to be the

benchmark for the Indian corporate. Arvind Mills has been making judicious choice of

fund-raising avenues in the domestic as well as international markets so as to construct

very efficient capital structure, which is in the tune with operating risks and enhances

the shareholders Value.The Company has laid down the Risk Management policy to


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manage the financial risks emerging out of currency and interest rate risks . It runs an

active treasury desk so as to make use of modern hedging tools available to manage

financial risks.Arvind Mills was the first Textile Company in India to implement ERP,

SAP as back as in the year1997-98. The company follows best accounting practices to

prepare its financial statements as envisaged in the Indian and international accounting

standards.

UTILITIES

Arvind established its own Naphtha based combined cycle cogeneration plant in 1997.

The same has been converted into Natural Gas fuel. Being operated on Natural gas fuel

it is totally emission free and environment friendly.

Arvind is serving the nation by preserving the precious resources with establishment of

highly efficient combined cycle cogeneration plant both at Naroda and Santej (main two

facilities). At the same time it is also serving the objective to provide stable, reliable,

uninterrupted quality power and economic steam.

By achieving the highest availability constant production needs is being attained . By

Maintenance of constant quality power in terms of voltage and frequency which

attributes to consistent production rate with less maintenance of the equipment.


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Achievements

1. By 1991 Arvind reached 1600 million meters of Denim per year and it was

The third largest producer of denim in the world.

2. Arvind mill look its place amongst the foremost textile units in the country.

3. Asias first fabric manufacturing unit to receive an ISO 14001 certification.

4. Recently awarded as the Reid and Taylor of the year 2007 by Asia retail congress.

5. Brand of the year Award 2007 (kids wear category) by Clothing manufacturer

association of India.

6. Pinnacle Award for Shoppers Stops for the best brand in the kids segment .


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ENRICHING LIFESTYLES

Styles may be short lived, but for well over seven decades Arvind Mill has been defining

and shaping many a collection and trendsetting styles across the ramps and retail

outlets of the fashion capitals of the world. Arvind mill is today synonymous with a vast

range of lifestyles products - be it fabrics or brands. Time and again we have been

called to produce some of the finest fabrics and exacting dresses for some of the

world's most quality conscious brands - while evolving our own extensive brand

portfolio.

Arvind mill is amongst a few organizations worldwide with a portfolio of brands that are

distinctive and relevant across diverse consumers. At Arvind, brands work across

multiple channels, price points and consumer segments.


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ARVINDBRAND

Arvind Brands, a subsidiary of Arvind Mills, is an important player in the Indian branded

apparel industry. With an array of international brands like Lee, Arrow, Tommy Hilfiger,

Wrangler and domestic brands like Newport, Flying Machine, Ruf n Tuf and Excalibur,

the company was present in most of the segments of the market. But the company was

facing severe competition from major brands like Louis Philippe, Park Avenue and small

brands like Trigger and Blackberrys. Also, with several MNC brands poised to enter the

Indian market, the company was under pressure. The case discusses the various

brands of Arvind Brands and its competitors and outlines in detail, the efforts made by

the company to organize its brands.

The case also throws light on the future of the branded apparel industry vis--vis Arvind

Brands.

Issues:

The issues facing branded apparel companies in post-MFA scenario (2005),

which are testing times for several players.

The positioning and targeting issues of multi-brand marketers.

The issues concerning branding and brand management in the Indian apparel

industry.


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Arvind Brands Competitive Position in the Indian Branded Apparel Market

Arvind's Brand Basket

According to a study by KSA-Technopak, the two companies that have the greatest

potential (because of their presence in all the stages of the garment manufacturing

process) to benefit from the post-MFA trade scenario are Raymond and Arvind. Arvind

sourced its fabric from the parent company- Arvind Mills, which gave it advantages over

other players...

Growth Strategies

As of 2005, Arvind mill with its formidable set of brands was in a comfortable position .

Most of its brands had high recall value and enjoyed a fair share of loyalty.From the

perspective of its parent company, Arvind Mills, which produced 110 million meters of

denim every year, the garment division, i.e. Arvind was the future growth engine...

Outlook

Most analysts believed that the big brands owned by large textile houses like Arvind mil

treated their ready-to-wear segment as an augmentation of their fabrics business and

due to this mindset, lacked fresh ideas and were unable to keep up with market trends .

According to Sahni, "The marketers of big brands were often not willing to experiment

and tap smaller towns and cities. They concentrated only on big cities by setting up

large exclusive stores and were averse to the idea of placing their products in multi-

brand stores...


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ARVIND MILL: PAST ANDFUTUREOPPURTUNITIES

Arvind Mills Limited is the flagship company of Rs 20 bn (US$ 550 m) of the Lalbhai

Group. It enjoys the distinction of being the worlds largest exporter and Asias largest

producer of Denim. Various brands owned by Arvind include Flying Machine, Newport

and Ruf & Tuf in Jeans and Excalibur in shirts. Apart from these, the company has

licenses from reputed International brands like Arrow, Lee, Wrangler and Tommy

Hilfiger for the Indian market.

Financial performance: Over the years

In the past, the company faced financial difficulties due to a downslide in denim markets

and heavy depreciation charges as new projects were commissioned at Santej. Also,

these projects were largely financed by high cost debt, which resulted in a huge interest

cost burden severely affecting its profitability. The same has been reflected in the FY00

and FY01 results (see table below). It underwent a restructuring exercise in FY02 which

was approved by a majority of the lenders and which saw the interest costs reduce by

nearly 50% in 1QFY02 itself. The company bounced back in FY03. It reported its

highest ever operating profit at Rs 4.3 bn, signifying a CAGR of 108% since FY00.

Increased proportion of value added fabrics in Denim and resurgence of demand

globally resulted in higher price realizations contributing 63%

of the total revenue.

Going

forward, Arvind Mills with its vertically integrated set-up is poised to capitalize on the

immense opportunities available for export growth post the quota system and has

already undertaken steps to increase its production capacity. However, an appreciating


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rupee albeit at a slower pace, volatile cotton prices and cyclical nature of denim which

has assumed the nature of a commodity are the downside factors to be considered.

BUSINESSUPDATE

The textile park project for outsourcing Shirting/Denim/Khakis fabric has begun

Operations with looms set up by third party vendors.

The Bangalore Jeans stitching and washing facility with an annual capacity of 4

Million pieces has commenced operations towards end of September 2005.

The erection of10 Million meters Denim fabric processing plant is complete. The

Plant is expected to be operational by middle of November 2005

The activity for increasing the Knits garment capacity by 1 Million pieces per

Annum to 4 Million pieces has commenced. The project is expected to be

completed by end of March 2006.

TEXTILEEXPANSION

Textiles maker Arvind Ltd will spend about Rs200 crore in FY11 to raise textile capacity

in denims and shirting, a senior official said on Friday. We would be adding about 10%

in capacity both in denim and shirting fabrics. Shirting would be slightly higher, chief

financial officer Jayesh Shah told Reuters in an interview. The capex would be funded

mostly through internal accruals. Ahmadabad-based Arvind, the third largest maker of

denim globally, counts Levi Strauss, Gap Inc and VF Corp as clients. The firm is

expecting a growth of at least 15% in consolidated sales helped by a robust brand and

retail business, Shah said. It had reported a consolidated revenue of Rs3, 280 crore for

the year ended 31 March, a 19% rise over the previous fiscal.


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Cotton prices have risen about 10% since 21 May when India allowed exports of cotton

after a one-month halt. Cotton prices are up to 34% higher than those prevailing

previous year, prompting textile firms to increase product prices. To the extent possible

every textile company is trying to pass on the cost push. Through the value chain all

of us are going to take some hit in margins. I dont think customers are going to pay

more, Shah said. Arvind Mill had reported a consolidated net profit of about Rs500

million in FY10 compared with a net loss of Rs994 million a year ago . Shah expects

profits to continue growing this fiscal as higher sales and price increases partially offset

the impact of raw material costs.The firm is also planning to unlock value by developing

a part of its 1,000-acre land bank situated in and around the city of Ahmadabad. We

are looking at how best to use this to realize the maximum value. One of the thought

process would be to develop some of it, to create higher valuation, Shah said. Many

major textile firms are tapping into realty to diversify and grow its revenues . Bombay

Dyeing & Manufacturing, Century Textiles & Industries, Provogue India and Alok

Industries are some of the other firms intent on developing or selling valuable land

parcels to boost cash flow and cut debt. Shares in Arvind were trading down 0.78% at

Rs31.75 in a weak Mumbai market.


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SUBSIDIARIESPERFORMANCE

Arvind Products Limited a 54% Subsidiary saw its turnover rise by 9% to Rs.96.23

Crores in the current quarter compared to Rs.88.66 Crores in the corresponding quarter

Previous financial year. The earnings of the company saw a substantial improvement

due to better performance of the Khakis product group. The losses for the quarter were

Contained at Rs.0.37 Crores in the current quarter compared to Rs.4.46 Crores in the

Corresponding quarter previous financial. The company is very likely to return to

positive Earnings in the near future. The revenues for Arvind Brands Limited went up by

44% to Rs.100 Cores in the current Quarter compared to Rs.69 Crores in the

corresponding quarter previous financial year. The festive season saw all the brands

performing very well compared to the previous Year.

OUTLOOK

The company has been focusing over the years on reducing its dependence on denim

and has progressively grown in other product categories including shirting fabric, and

knit fabric. Expansion of garment facilities is also a part of the diversification and

Verticalisation strategy. The contribution of these businesses to both revenues and

profits of the company has increased over the years. However, denim continues to be

the mainstay of the company and the current glut in the market is likely to affect average

realization and profit margins in remaining two quarters of the year. Denim depicts

cyclicality and the company estimates that denim is currently in its down cycle

internationally with increasing capacities and lower offtake.The company is better

equipped to handle the current expected downturn than it was in the past . This is mainly

from two factors: Product diversification as discussed earlier and the ability to produce.


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denim at one of the lowest costs in the region . The outlook on denim is negative for both

volume as well as prices in the international market and positive for volumes in the

domestic market. The domestic market prices willbe under severe pressure due to large

capacities being added with domestic market in focus. The company has been

approaching the domestic market with lot of innovative strategy and is confident of

retaining its position as Indias premier denim supplier. The outlook on all other product

groups is very positive and they are expected to cushion. the fall in overall margins of

the company due to weaker denim demand. The supply side factors like cotton, power

cost are under control and are likely to remain

At current low levels. The costs of dyes and chemicals have gone up substantially over

the Period of last year, but are expected to be stable at these levels in near future .


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ARVIND MILLSCHANGESNAME,FOCUS,STRATEGY

Textile major Arvind Mills which has been recently going through a bad patch owing to

rising rupee, reducing exports and falling margins is undertaking a business

transformation in a bid to become a billion dollar company. The company has firstly

changed its name from Arvind Mills Ltd to Arvind Ltd with a new logo and identity to

reflect a company which is diversified with focus on branded apparel and retail .

The promoters will increase their stake from 34% to 47% and infuse Rs.188 crore

capital into the company. Also, half of the Rs.1400 crore debts which Arvind Ltd has

would be repaid by selling off land at Ahmadabad and Bangalore thus positively

affecting the companys profitability.Arvind is now giving more focus to brands and retail

which uptil now contributes 19% of total revenue. It will also move to become an

integrated textile player by producing fabric as well as retailing it. With a combination of

its own as well as licensed brands, Arvind aims to become the largest apparel brand in

India with focus on Tier II and III cities.The strategy may work out to be rewarding for

the company as it has a good portfolio of domestic and international, and has been a

established national player. The move also helps it to ward off any risk it faces from the

recession in export markets.


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ARVIND MILLUNVEILS 150 NEWPRODUCT

Arvind Mills Ltd (AML) has launched a new marketing initiative wherein it unveiled about

150 new products like Teflon coated fabric called Threads of Life. The fabric would be

available in the next six months. AML head of international sales and marketing Girish

Rao said that the company was targeting a 10 per cent growth this year as compared to

last year. The company reported a Rs 363 crore turnover last year. The fabric is

sourced by internationally acclaimed fashion brands like banana republic, Tommy

Hilfiger, GAP, JC Penny and others. Mr. Rao added that the Crosshatch range and

over-constructed fabric range just launched would lead the trend in the international

fashion market.

Arvind's expansion and diversification projects have suffered from substantial time and

cost overruns as well as stabilization problems, which have coincided with the ongoing

downturn in the denim industry.In 2000, Arvind Mills, once the darling of the bourses

was in deep trouble. Its share price was hovering between a 52 week high of Rs 20 and

low analysts no longer tracked the Arvind Mills scrip.As the denim business continued

to decline in the late 1990s and early 2000, Arvind Mills defaulted on interest payments

on every loan, debt burden kept on increasing. Of Rs 9 (in the mid 1990s, the share

price was closer to Rs 150). Leading financial


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1. Arvind Mills was the flagship of the Lalbhai group. It had significant presence in

textiles, ready-to-wear apparel, agro-chemicals and dyestuffs. Arvind Mills had 5 denim

wear brands which were leaders in their respective segments in India.

2. Fabric with velvet. It is closely woven and has a thick, short pile on one side .

3. A textile fabric with diagonal ribs (combination of plain and purl stitches, producing a

somewhat elastic fabric).

The company's credit rating had also come down. CRISIL downgraded it to "default" in

October 2000 from "highest safety" in 1997. In early 2001, Arvind Mills announced a

restructuring proposal to improve its financial health and reduce its debt burden. The

proposal was born out of several meetings and negotiations between the company and

a steering committee of lenders.


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BEYONDBUSINESS

At Arvind, it is firmly believed that a successful company must play an active role in the

development of the society from which it springs. Besides pursuing its business goals, it

should also be responsible corporate citizen. It is because of these beliefs that Arvind is

always on the forefront of extending a helping hand for the needy, downtrodden and for

the society at large.

Arvind has always been actively involved in the educational institution, hospitals and

research institutions of Ahmadabad, its hometown. It co-pioneered the world renowned

Indian Institute of Management, Ahmadabad (IIMA), and helped set up the Ahmadabad

Textile Industry Research Association (ATIRA), and The Kasturbhai Lalbhai Textile

Training Center to develop and enhance the skills of textile workers . The Narottambhai

Lalbhai Rural Development Fund and The Lalbhai Group Rural Development Fund

where founded to undertake special programs for the economically deprived. It also

assists the nearby villages, through nutritional programs, food camps and the

harnessing of solar energy.


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SHARDA TRUST

At Arvind, we believe in repaying to society in our own little way through a social arm of

ours Sharda Trust

Established in 1995 with the support of Arvind Mills, Strategic Help Alliance for Relief to

Distressed Areas (SHARDA), its purpose is to help the urban poor in improving their

quality of life. The Trust has based its strategy on the premise that a family has five

basic needs, listed below and ranked according to their priority. These are:

Basic physical infrastructure for clean potable water at the door steps in

adequate quantity at convenient hours, individual toilets and hygienic

surroundings.

Primary health-care.

Access to high quality secondary and tertiary health care.

Reading, writing and arithmetic skills (3Rs) for all.

Skill and ability to compete in todays environment.

SHARDA Trust joined hands with the Ahmadabad Municipal Corporation to upgrade the

physical environment and living conditions in a slum pocket called Sanjay Nagar. The

Municipal Corporation assigned the task of implementation to this Trust, which

completed the project within time and budget. So innovative was the Trust's approach,

that on 7 August 1998, the United Nations Centre for Human Settlement (UNCHS)


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included the Sanjay Nagar project in its "100 Best Practices Global List".

Subsequently, the Trust has taken several initiatives like providing secondary and

tertiary healthcare to the urban poor through networking with prominent hospitals in the

city. About eight hundred patients have benefited and approximately Rs.13 lakh have

been spent on this activity.

The Trust collaborated with the National Institute ofFashion Technology (NIFT), Gandhi

agar, and helped the urban poor to train in the area of sewing machine operation . The

Trust also organized placement activity with the local garment manufacturers and has

so far trained and placed over 300 persons in Ahmadabad.

Spoken English and basic mathematics for the youth belonging to poor families and

providing them with computer skills is the other activity that the Trust has undertaken in

collaboration with the Chandraprasad Desai Memorial Foundation. The Trust is poised

for a rapid expansion in all its projects.


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CONCLUSION

A huge window of opportunity has opened up the Indian textile industry for various

players need to get act together. Government is playing the role of facilitator bytaking

various majors. Its now for players to make investments inbuilding the capacities and

making them integrated manufacturers. The industry enjoys significant strength and

advantages, such as availability of raw materials, labour, domestic market and

supportive government policies. As we analyzed the various data based on

questionnaire, a fact has came into light that Arvind Mills is the most known and popular

Brand in context of major Textile giant followed by Reliance and Birla Group . Because

of applying innovative ideas such as providing various facilities, launching new schemes

& offers Arvind Mills garments are more used by people as compared to other one .

Except it, people firstly prefer for good quality and comparatively low prices Textile

garments then they emphasized on qualities and durability.

Documents

SRV ARCHANA