This presentation is about the strategy followed by Arvind mills to transform them-self as a world class retailer.

1. Strategic Management
on
Arvind Mills
By,
Ajay |Ayushi |Abhinaya |Deepak |Manish |Hari

2. Law 1
Cost & Price always declines
March 31, 2013 March 31, 2012
Cost of consumables 1641 1569
•The cost of consumables given above is for the entire Arvind mills products.
•There is a huge fluctuation in textile industry due to various distribution
level
•As the cost is increasing the price of the end product is also increasing

3. Law 2
Competitive position determines
your position
• Return on Asset : 11%
• Market Share: 10.12%
• Largest Competitor Market Share (S Kumar's): 9.51%
• Relative Market Share: 1.06
• Which determines that Arvind Mills is the market
leader in textile industry.

6. Market Share Trends
211.8 229 296.9 337
600
800
1000
1100
0
500
1000
1500
2000
2011 2012 2013 2014
Shirting Market Gaining
Raymond Arvind
143.7 185.6
314.1
419.1
526 458
460
504
0
200
400
600
800
1000
2011 2012 2013 2014
Garmenting
Raymond Arvind Mills
642.7
807.1 850.4 955.3
800
1100
1400
1600
0
500
1000
1500
2000
2500
3000
2011 2012 2013 2014
Denim
Raymond Arvind Mills

7. Competitive Advantage of Arvind
Mills
Focus on Retail company want to achieve 80% of its sale through
apparel.
Globalization Strategy
Launching of spectrumplaza.com
Tie ups with Indiatimes.com and rediff

8. Law 3
Customers & Profit pools don’t stand
still
Flying Machine Newport Ruf n Tuf Excalibur
Launched 1980 1993 1997 1995
Age group 15-30 18-28 15-30 18 & Above
Price range 500-2500 600-1500 299-699 500-1000
Difficulties
faced
Hike in exise to
8%
Hike in exise to
8%
Distribution
hurdle
----
Retailer own outlet own outlet Big Bazaar
Brand
ambassador
Abhishek
Bachchan
Saif Ali Khan Akshay kumar ----
Tag Line Who Needs
Phoren?
The Measure
of Success
---- ----
Attractive Customer Segment

9. International Brands
Arrow Lee Wrangler Tommy Hilfiger
Licensed Cluett,
peabody & co.,
USA
VF corporation VF corporation JV with
Murjani group
Age group 27-35 4-14 & 17-25 17-25 &25-40 18 & Above
specifics Four sub brand
•Classic
•Premium
•Urban
•Sports
Adjudged the
images fashion
award “most
admired
Jeanswear”
brand
•Fashion
conscious
•Love wearing
denim on
weekend
•Retail
ambience was
given
importance
Introduced
men’s
sportswear,
men’s
Jeanswear,
junior
Jeanswear

10. Customer Loyalty Program (Megamart)

12. Law 4
Simplicity gets results
Value Chain In The Textile Industry
12

13. PRODUCTION PLANNING AT
Arvind Mills
Not
ApprovedBuyer
requirements Design
Goes to the
customer for
approval
Marketing dept.
generates sale
order with delivery
date
Planning of raw
materials
Planning of work
Routing and
schedulingQuality Control
Production Planning and Control

14. Product Flow

15. Information Flow

16. PROCESS DIAGRAM

17. MANUFACTURING PROCESS AT
Arvind Mills

18. Manufacturing Process at
Arvind Mills

19. KEY PERFORMANCE
INDICATORS @ Arvind Mills
Delivery on Time
Productivity Improvement
Improvement of Equipment Efficiency
Reduce WIP
Reduce Overheads
Reduce Obsolescence
Improving the Bottleneck Stages

20. Point of Departure
 Less productive machines in process has to be
eliminated.
 Presence in only big cities & lack of rural penetration.
 Growth can be attributed mainly to the denim
garments, which is the largest garment segment today.
Mills with obsolete and old machinery.
Spinning the capital intensive part was handled by
the automatic mills

21. Point of Arrival
Vertical integration, diversification and huge capacity
setup.
Process innovation and cost player strategy to defend
its Foreign Market.
Improving its supply chain and inventory management
through further tying up with farmers, usage of ERP
system and increase in the plant efficiency with the
use of technology .
Alliance with establish brands.
Explore the rural market with affordable brands like
Newport .