INTRODUCTION

VISION:
We will enable people to experience a better quality of life by providing enriching and inspiring lifestyle solutions.

MISSION:
WE BELIEVE In people and their unlimited potential; in content and in focus on problem solving; in teams for effective performance, in the power of the intellect. WE ENDEAVOUR To select, train and coach people to obtain higher responsibilities; to nurture talent, and to build leaders for the corporations of tomorrow; to reward, celebrate and activate all intellectual business contributions. WE DREAM Of excellence in all endeavors; of mutual benefit and prosperity; of making the world a better place to live in.

BRANDS:

Own Brands Mainstream

Gant

Flying Machine

Ruf & Tuf

LICENSENED BRANDS

Energie

USPA

Arrow

Izod

Mossimo

JOINT VENTURE BRANDS

Tommy Hilfiger

lee

Wrangler

MILESTONES

2010 Arvind launches The Arvind Store, a concept putting the companys best fabrics, brands and bespoke styling and tailoring solutions under one roof. Arvind launches its first major Real Estate projects. Arvind becomes one of Indias largest producers of fire protection fabrics. 2007 Arvind expands its presence in the brands and retail segment by establishing MegaMart One of Indias largest value retail chains. 2005 Arvind creates a unique one-stop shop service on a global scale, offering garment packages to reputed national and international customers. 1997 Indias largest state-of-the-art facility for shirting, gabardine and knits is set up at Santej. 1991 Arvind emerges as the third largest manufacturer of denim in the world. 1987 Arvind enters the export market for Denims with a dual focus - Denim for leisure and Denim for fashion wear. 1980 Arvind records highest levels of profitability. The new strategy Reno vision, points at changing the business focus from local to global, towards a high-quality premium niche market.

1934 Arvind establishes itself amongst the foremost textile units in the country. 1931

The inception of Arvind Mills Limited at the hands of three brothers - Kasturbhai, Narottambhai and Chimanbhai Lalbhai

Mr. Sanjay S.Lalbhai (CHAIRMAN)

BOARD OF DIRECTOR

LIFESTYLE FABRICS ANUP ENGINEERING

RETAIL

ARVIND INFRASTRUCTURE

ARVIND ACCEL

TELECOM BUSINESS

KNOWLEDGE ACADEMY

Ashish Kumar (CEO) Kamal Singal (CEO Rishi kapoor (CEO)

J . Suresh (CEO)

Dinesh Yadav (CEO)

Vipen Malhotra (President)

Milan Shah (CEO)

EACH BRAND IN BREAF

Flaying machine

Arvind Mills group company Arvind Brands has plans to fly its flagship denim brand, Flying Machine, to international destinations that include the US and western Europe, in addition to extensive plans for the brand in it''s home market, India. According to J Suresh, CEO, brands and retail, Arvind Brands, the company has created a really global brand with Flying Machine. The denim brand is present in markets such as the Middle East, Kenya, South Africa and Russia through other brands from its stable. Additionally, Arvind Brands has also been marketing and distributing brands such as Arrow, Lee, Excalibur and Wrangler in the domestic market. It recently entered into a joint venture with luxury and casual apparel maker Diesel for a premium branded retail venture. According to a Morgan Stanley report, Arvind Mills is eyeing a five to seven times increase in its branded apparels business over the next three to four years. In FY 2007 the turnover of the company''s branded apparel business was around Rs250 crore. It has now signed up Bollywood star celebrity Abhishek Bachchan to endorse the Flying Machine brand. Earlier this year, Arvind Brands announced a package to re-launch Flying Machine with an Italian designer, a new brand identity and exclusive retail stores. Bachchan''s endorsement of the Flying Machine brand gives is designed to give the re-launch a huge push, and will be supported by a new multimedia campaign. According to Abhishek Bachchan, "Flying Machine reflects the pride of India and is a

phenomenal example of India''s potential at present day. Their designs, quality and value are top notch and that this is done by an Indian brand is remarkable. I am glad to be associated with Flying Machine as its brand ambassador." He was speaking at the unveiling of the autumn-winter collection at the press conference in Mumbai. Arvind Brands CEO J.Suresh, talking about the brand''s venture of its renewed line, said "The new Flying Machine is all about a ''state of mind'', which wrenches the hinge of any limits on style and performance and goes beyond, while also taking pride in running along lines of originality and roots. Abhishek Bachchan is symbolic of today''s ''no-limits India'', which prides itself on its strides even as it remains rooted in the cultural sensibilities. Abhishek Bachchan brings on board a terrific persona, a fresh and an impeccable style, youthfulness and an incredible ability to marry class with mass." Flying machine products are designed by young Italian Designer, Chicco, who has been a designer for a number of internationally successful denim brands, such as Replay and Evisu. According to Chicco, "The AW07 collections is set in the streets of Europe and is inspired by ''Fashion Tripping'' a concept, representative of a fantasy that combines influences from every fashion capitals into a young persons wardrobe." Over 300 new options will be launched this season. The denims are dark and distinctive with clean washes and new fits and coordinated with a large collection of shirts, knits, jackets, winter wear and cool accessories to give a thematic global look.. Alok Dubey, business head, Flying Machine, commenting on the designer''s work for the line, said, "Chicco''s designs have given Flying Machine the cutting edge of designer fashion and a very international air. The potent combination of superstar Abhishek Bachchan, Italian designer Chicco and our world class retail environment designed by JHP London, will amplify the brand''s badge value and reinforce the brands core identity as an iconic international fashion brand. The pricing of course remains sensible and competitive."

Flying Machine products are at leading retail outlets, department stores, and over 50 exclusive stores.

RUF & TUF DENIMS Arvind Mills, the flagship company of the Lalbhai Group, is one of Indias leading composite manufacturer of textiles. Its headquarters is in Ahmedabad, Gujarat, India. It manufactures a range of cotton shirting, denim, knits and bottomweights (Khakis) fabrics. It is Indias largest denim manufacturer apart from being worlds fourthlargest producer and exporter of denim. In the early 1980s, the company brought denim into the domestic market, thus started the jeans revolution in India. Today it not only retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.

U.S. Polo Assn USPA Properties and Arvind Lifestyle Brands have opened the 50th U.S. Polo Assn. store in India at Linking Road, Mumbai. USPA Properties is a wholly owned subsidiary of United States Polo Association and Arvind Lifestyle Brands is a part of Arvind Mills.

Speaking on the occasion, David Cummings, president and CEO, USPA Properties, said: International expansion is a key strategy for the U.S. Polo Assn. brand and the opening of the 50th store in India reinforces our strength as a leading International brand. This opening also marks an important moment in our relationship with Arvind, a licensee and valued partner to us for several years. Arvind has done a tremendous job in expanding the business in India. We look forward to continuing to work together to provide the Indian market with apparel and other products that are true to the heritage of the sport of polo.

Arvind Brands has been the exclusive manager and authorized supplier of the U.S.

Polo Assn. brand in India since 2007.

J. Suresh, MD and CEO, Arvind Lifestyle Brands and Retail, said that the popularity of polo in India has led to demand for retail apparel and other merchandise that are true to the sport. He said that the company looks forward to continued growth in India. In 2010, U.S. Polo Assn. brand wholesale sales totaled $7.12 million in India and $475 million worldwide. Some of the other USPA stores in India are located in Delhi, Mumbai, Bangalore, Chandigarh, Pune, Ahmedabad, Hyderabad, and Kolkata. USPA Properties and Arvind expect to operate a total of 100 stores in India by the end of 2012. Arvind has introduced International labels such as Arrow, Izod, GANT, U.S. Polo Assn., and Energie in India. It also has its own brands like Flying Machine and Excalibur Gant, among others and operates 200 plus retail chain 'Megamart' in India.

ENERGIE

The denim collection is so unique that you would know exactly which brand name it carries in once glance. Their denims are treated and each one undergoes meticulous treatment process that allows the fabric to stand on its own, whilst at the same time creating a trend for people to follow. Energie Clothing's goal is to provide innovative clothing line which is why it is way ahead from its competitor brands. Energie collections are sold worldwide and they have more than one hundred branches all over the globe and so access to their great designs is easy. The good news is they are also available at George Harrison Menswear we have jeans, belts, knitwear, jackets, t-shirts & Energie shirts.

IZOD IZOD's roots goes back to Arthur James "Jack" Izod's bespoke tailor shop in London, where Jack Izod produced shirts and held a royal warrant to provide shirts to the royal household. A visiting executive from David Crystal Inc. became intrigued by the name and purchased the rights to it. The Izod of London mark was initially applied to a successful line of women's shirts and then expanded to include menswear and childrenswear. David Crystal Inc. first added color to the line and subsequently coupled the brand with the Lacoste brand in order to broaden selection and appeal. IZOD's athletic roots and colorful persona were thus first formed. Now associated with the legendary French tennis player Ren Lacoste but still lagging in sales, the David Crystal executive began giving away the shirts to famous people, including, the Duke of Windsor, Sam Snead, Ben Hogan and Bing Crosby; the shirts began to resonate with consumers. Over time, the shirts became popularized as IZOD shirts and, by the 1980's, they had become a signature piece of "preppy" wardrobes in the United States. When the preppy look began to fade at the end of the decade, so did the brand's sales. IZOD's owner, at this point known as Crystal Brands, split the brands in the early 1990's in an effort to maintain market share, marketing the similarly designed goods at different price points and in different channels but without success. Lacoste was sold and then, in 1995, PVH purchased IZOD. IZOD Today Since our acquisition of IZOD, PVH has remained true to the brand's history of athleticinspired and colorful style, as well as functional design. We rebuilt the brand's prestige steadily through the remainder of the 1990s. With its renewed strength, the IZOD brand was licensed for new product categories, including soft home goods, leather outerwear andgoing back to the brand's roots-men's tailored clothing and ties. A wholesale IZOD women's sportswear line was launched in 2003. Initially as a licensed business, we now operate the business directly. In 2007, PVH acquired the naming rights to the sports and entertainment arena in the New Jersey Meadowlands now known as the IZOD Center. In 2009, IZOD became the official

apparel provider of the Indy Racing League, IndyCar Series, Firestone Indy Light Series and the Indianapolis Motor Speedway and, in 2010, added on the official title sponsorship of the IndyCar Series, aligning its athletically-inspired product and target audience with a national pastime open wheel auto racing. For consumers, IZOD continues to expand and innovate. Its offerings include classic sportswear, jeans, IZOD Golf, IZOD LX (a luxury sportswear line), IZOD XFG (extreme function golf) and IZOD PFX (performance apparel). For Spring 2011, IZOD PFX offered its most performance oriented line of athletic-wear to date and for Fall 2011, the A.J. Izod Ltd. line was launched in department stores, featuring suit separates, trench coats, and eclectic sportswear. The brand has also begun to expand internationally. PVH has announced a strategic licensing arrangement with a Chinese partner, which has committed to distribute IZOD branded men's and women's sportswear in more than 1,000 points of sale across China, one of the world's fastest growing markets. The brand is also licensed to a major apparel company in India for men's sportswear and accessories, another emerging economy with significant potential.

CHEROKEE A wedge is born. In Venice Beach, California. From humble beginnings as a shoe repairman, James Argyropoulos, the son of a Greek immigrant, launches his custom-made footwear designs for the "flower child" generation. At first, sells the shoes out of his garage. Soon thereafter, gets picked up by Macy's and Bloomingdale's, among other department stores. Then, a brand blossoms. Cherokee expands to selling apparel for women and kids. The company not only grows nationally, but also internationally - with wholesalers in such countries as China, England, Russia and Australia Change is good. Responding to market shifts, Cherokee focuses on value. Earns a reputation as a trusted American brand known for casual comfort at affordable prices for women, men,

kids and baby Together is better. Cherokee launches a hugely successful partnership with Target. Soon becomes one of the bestselling family lifestyle brands in the nation. Northern exposure. Cherokee expands to Canada, linking arms with Zellers, one of the country's oldest and largest retailers. Causes a sensation Hip Hip Hooray! Cherokee teams up with UK-based Tesco - one of the world's largest retailers - and attracts another strong family brand following. Jeans hit the top of the charts; one in every three babies wears the brand. Worldwide and wonderful. Cherokee explodes on a grand scale, from Central and Eastern Europe, Mexico, Chile and Peru to South Africa, Israel, Brazil, India and Spain Cherokee re-launches the brand website and a new blog giving Authentic Americana a visual language and voice. Today Cherokee is everywhere. Now in 29 countries, including Russia, Japan, and China. The brand continues to get a phenomenal response to it's casual, comfortable American looks. Cherokee re-launches the brand website. Mossimo Iconix Brand Group Inc announced that it has signed its first license agreement in India. Iconix has entered into a long-term Direct-to-Retail (DTR) license with Arvind Limited for its Mossimo brand in India.

Arvind, a multi-faceted wholesaler, retailer and distributer, will hold the exclusive multiyear license to manufacture and distribute Mossimo apparel and accessories throughout India. The Mossimo brand will be available in 170 stores in India, which are owned or franchised by Arvind. Arvind currently operates 170 stores with plans to grow to 500 stores by 2014. Mossimo is projected to launch in India during 2011.

Neil Cole, Chairman and CEO, Iconix, commented, "India is an exciting new frontier for Iconix as we continue to roll out our portfolio of brands throughout the world." Cole added,

"India's growing middle class has a preference for American brands and retail outlets are quickly developing, making this a prime time for our expansion into the marketplace."

J Suresh, MD and CEO Arvind Lifestyle Brands Ltd and Arvind Retail Ltd., said, "Mossimo in an internationally recognized brand and we are thrilled to work with Iconix to bring Mossimo into India. As the brand rolls out next spring, we foresee a very successful launch."

Mossimo is currently available in a range of retailers throughout the world from Target in the United States to free-standing stores in Australia and department stores in Latin America and Japan

Tommy Hilfiger New Delhi/Bangalore: American apparel-maker Tommy Hilfiger plans to add 500 stores in India over the next five years to capitalize on the brand's surging popularity, the company has told the Department of Industrial Policy and Promotion (DIPP), the nodal agency that clears such foreign investments.

Tommy Hilfiger Arvind Fashion Pvt Ltd, a 50:50 joint venture between the US premium lifestyle brand and Ahmedabad-based Arvind Ltd, will invest Rs 60 crore in 45 companyowned stores; a significant number of the stores will be opened through franchisees, according to a foreign investment application filed by the company and reviewed by ET.

Currently, Tommy Hilfiger operates 58 franchisee outlets and over 60 shop-in-shops in other department stores. The expansion will take Tommy Hilfiger's presence to 631 points of sale by 2016-17.

Both partners will invest Rs 15 crore each, whilst Rs 30 crore will come from the company's internal accruals, the alliance said in its application to the DIPP.

"Engaging in retail operations directly would enable the applicant company to set up retail

stores in locations all over the country including in those which at present are found commercially unfeasible by our franchisee partners," the application said.

"The company will announce its concrete plans in due course," Jayesh Shah, director & CFO of Arvind said, without commenting on specific queries.

A year ago, Tommy Hilfiger had bought out the 50% stake of the Murjani group in a joint venture called Arvind Murjani Brands, which owned the franchisee rights for the American brand in India. The Murjani group held the Tommy Hilfiger trademark licence in India.

In 2011 the JV applied to the Registrar of Companies for a change of name from Arvind Murjani Brands to Tommy Hilfiger Arvind Fashion with an authorized share capital of Rs 20 crores. Now, the alliance has filed an application with the DIPP seeking approval to open Tommy Hilfiger branded stores in India via the window for single-brand retailing.

Tommy Hilfiger Arvind Fashion is bullish on India as the brand has shown "robust financial performance" over the years and clocked total sales of Rs 80 crore for the fiscal year ending March 2011. Revenue is expected to have swelled four times to Rs 320 crores for the fiscal year ended March 2012, the documents filed by the company to the DIPP said.

Nearly 17 per cent of the $40-billion Indian apparel market is organised, management consulting firm Technopak Advisors estimates.

The $4.6-billion Tommy Hilfiger, a unit of PVH Corp, also owns brands such as Calvin Klein, Van Heusen (the Indian rights are owned by Madura Fashion & Lifestyle), and operates more than 1,000 stores in over 90 countries in North and South America, Europe, Asia Pacific among others.

Tommy Hilfiger has been one of the early movers among international lifestyle brands, having entered India in 2003. "It has stayed away from much discounting and created a loyal following across metro cities," Arun Sirdeshmukh, former CEO of Reliance Trends and co-founder of portal Fashionara, says. "But given their premium positioning it remains to be seen if there is a market for an additional 500 stores," he adds.

Meantime, in a separate DIPP application, French fashion brand Promod SAS has filed for a 51 per cent stake in a joint venture with local Modex Trading Pvt. Ltd. Modex is co-owned by Tushar Ved, the promoter of Major Brands, which currently owns Promod's franchisee rights in India.

Retail analysts say the brand had low recall value before it launched in India and a limited footprint, which is slated to change with the JV. "Promod has done fairly well in India also on the back of its mall locations, being a part of Major Brands' portfolio that includes Mango, Charles & Keith and Aldo," a rival retailer, said seeking anonymity.

The four-decade old brand, which claims to refresh its collection with 100 new products every two weeks, competes with women-centric, trendy brands such as Zara, s.Oliver and Esprit.

Incidentally, Madura Fashion & Lifestyle (MF&L) too is in the process of converting the distribution agreement it signed with Esprit in 2005 into a joint venture. "We have been in talks with Esprit and are trying to fine-tune things," Ashish Dikshit, CEO of MF&L said, without divulging details. "Our approach is to look for deep and long-term alignments," he added.

A study by management consulting firm Booz & Co revealed that around 100 multinational retail & consumer companies had entered India between 1990 and 2010. As many as 86 companies entered before 2009, and a little over a fifth of this lot (or 18 companies) changed their partnership model.

"Over the past few years, consumer brands that had followed the low-risk and low-return model through franchisees and distribution agreements, have gained confidence in the market and increased commitment," Raghav Gupta, principal at Booz & Co, says. Take for instance, UK-based retailers Clarks, and Marks & Spencer, which extended their distribution or franchise agreements into joint ventures with Future Group and Reliance Retail respectively.

LEE In 1889, Henry David Lee launched the Lee mercantile company on the world. Lee was provoked by the conflicting quality and feature of foreign work wear and decided to produce quality US garments. H.D Lee designed Lee Overall, in the year 1911. The initial brand model was named the Lee Bib Overall, made in 7.5-ounce denim containing an allfunctional chest pocket and a button fly. In 1913, Lee conceived the Union-All and become an imperative part in its industry. Lee was also producing jackets and dungarees but in 1913, Union-All work jumpsuit was produced trailed by the first- ever "Overall" in 1920 setting the establishment for Lee's early development.

Buddy Lee was the Lee Jeans advertising mascot. This promotional item worked for the company from 1920 to 1962, was brought back as the idol of TV advertising for the company's Lee Dungarees collection from 1998 until the mid-2000. Zipper fly was on of the best selling creations by Lee. Lee launched many new creations to manufactured denim throughout the 20s. In the 30s and 40s Lee become the Americas number 1 manufacturer of work clothes. Lee continued to build on their brand and in 1950, Lee as the company endeavored into casual wear. Lee stretched out its intense growth and development throughout the 60s, branched out to 51 countries and merging with VF Corporation in 1969. The company continued to inflate its fashion ranges all through the '70s, '80s and '90s, introduction Lee National Denim Day in 1996.

Today's Lee is all about bringing more fashion, finishes, grace, texture, fits and choices than ever before to market.

Our range of Lee Jeans are unrestrained and varied to suit every individual's personal taste. You are sure to find your preferred fit with Lee men's casual clothing. Shop our range of tough and comfy men's jackets, pants and blue jeans. You will find our Lee Jeans in either prewashed comfortable fit, boot cut, and in many other styles.

If you need more information on Lee Jeans, feel free to get in touch with Substance Designer Clothing. With Substances rare and exclusive mix of brands we hope to provide our clients with a sense of individuality and class!

Wrangler

Wrangler is an American brand which specializes in jeans and other apparel items. Headquartered at Greensboro, North Carolina, United States, its products are sold worldwide. Wrangler is a part of VF Corporation, the world's largest clothing company which hires 47,000 people, making $7.6 billion annually. Apart from Wrangler, it also owns Lee, JanSport, The North Face, etc. VF Corporation is publicly traded in the New York Stock Exchange under the ticker symbol VFC and is a component of S&P 500. The products of Wrangler include jeans, and other clothing items for men and women, boys and girls

SWOT ANALYSIS
Strengths Strong portfolio of domestic and international brand Economies of scale through complete integration Latest Manufacturing tools Wide geographical presence

Weakness Less productive machines in process Presence in only big city Not doing enough to build brand equity

Opportunities Changing retail scenario Global demand of denim fabric Price Competitiveness Cheap Labor Debt Restructuring Product Diversification Forward Contracts for Naphtha and Cotton Duty waive-off after post 2005 liberalization scenario

Threats Competition from global player Decline in exports Cheap import from china ,Bangladesh, Thailand Rise in raw material price

CHALLENGES TO COMPANY
In the third quarter of 2005-2006 the revenue for Arvind Mills declined by 4% as compared to the correspondingquarter of the last financial year . This was mainly due to the reduction in both volume and realization of denimduring the quarter. The denim product group of the company is still to recover from volume slump due to its keycustomers having low season. The emergence of Pakistan and Bangladesh as strong regional competitor aredeterrent in volume recovery. The European market volumes are also affected by large capacity build up in Turkey,even though the shirting and garments business grew at satisfactory pace the high dependence on the denim lead tothe loss in current quarter. While the near term outlook on denim is negative, the outlook on all other products;shirting, garmenting and knits is positive.The company is working towards de-risking its existing business model. The strategy is getting implemented inthree phases. The first phase of product diversification is already implemented with revenues from shirting and knitshaving stabilized. The second phase of verticalisation is under implementation in which investments will be made inthe retailing and branding. The final phase is to grow the business of "Arvind Brands", in which company will focuson growing its own brands.

Global scenario India is an important player in fabric & garment markets exporting to United States of America and Europe butChina remains the biggest exporter. A study by the U.S. International Trade Commission predicts that China isexpected to become the "supplier of choice" for most U.S. importers (the large apparel companies and retailers) because of its ability to make almost any type of textile and apparel product at any quality level at a competitive price. Due to explosive growth of Chinese exports to European Union and its crowding out effect, European Unionhas fixed a percentage ceiling for Chinese imports. This has created room for other exporting player to meet thedemand in European Union.A major dampener to the higher volumes of exports is the reduction in prices. As a result of increased competitionand the disappearance of quota, it is seen that China's prices for apparel declined on an average by 53 percent.Arvind Mills faced a sharp fall in denim sales due to overcapacity in the international as well as domestic market. Inthe international denim

market, low-cost supplies from companies from Turkey and Pakistan have Arvind mills loseits market share. In the domestic market, companies have increased their production capacity, improved their technology and quality, which has led to fall in prices.

Competitor Moves Raymond IndiaIncorporated in 1925, the Raymond Group is an Rs.1400 crores plus company. Raymond Textile is India's leading producer of worsted suiting fabric with over 60% market share. It has developed a strong domestic distributionnetwork and eyes the retail side of the textile industry. The company has become a supplier to several Japanesemanufacturers to de-risk their fluctuations in sourcing from China. It has also invested in increasing its productioncapacities by setting up new manufacturing units and has upgraded its technical facilities to world-class levels. Itscontinual investments in company owned outlets have resulted in unmatched size of over 300 in numbers.Welspun India LtdWelspun India Ltd, flagship of the Rs.2000-crore. It is entering into the cotton farming business, which would bedone under typical contract farming model, and it has already discussed the new business model with stategovernments. The new towel and sheeting facility at Anjar in Kutch district, is expected to cater to the increaseddemand from the exports markets. It is planning to invest heavily in opening exclusive 'Spaces' stores across thecountry. It is aiming at opening of 20 such concept stores during next one year. The stores would be owned and run by Welspun domestic retail division and would function as independent profit centers.Alok IndustriesEstablished in 1986 Alok began with texturising of yarn and steadily expanded into weaving, knitting, processing,home textiles and readymade garments. Alok also controls an extensive embroidery operation through its sister concern, Grabal Alok Impex Ltd. Alok has grown to become a diversified manufacturer of world-class hometextiles, apparel fabrics, garments and polyester yarns selling directly to manufacturers, exporters, importers,retailers and brands the world over. With the sales turnover of around Rs.1250 crore in F.Y. 2004-05, Alok isamongst the fastest growing vertically integrated textile companies in India. It has plans to invest Rs10bn for doubling its capacity.Indian RayonIndian Rayon and Industries Limited, a flagship company of the Aditya Birla Group, is among India's top 25corporations with a turnover of over Rs.15.26 billion. Indian Rayon is a leader in its key businesses - ViscoseFilament

Yarn, Carbon Black, Insulators and Branded Apparels - both in India and internationally. The companyenjoys a good brand image with power brands such as Louis Phillipe, Van Heusen, Allen Solly and Peter England toits credit. The division can leverage on its relationship with international players such as Tommy Hilfiger, GAP andBanana Republic. It has a marketing budget of 12.5% of sales and has plans of investing Rs6 bn for capacityexpansion and upgradation

Gokaldas ExportsGokaldas exports was established in 1979, in Bangalore, India. It has 48 fully equipped, modern, manufacturingfactories, all based in Bangalore. It has a capacity to produce and export 2 million garments a month and a full-fledged inhouse design team creating and developing exciting collections each season. It has plans to expand bysetting up capacities in Hyderabad, Mysore and Chennai (SEZ)

Arvind Mills: Future StrategyLooking at the distinctive competencies achieved by Arvind Mills through vertical integration, diversification andhuge capacity setup, the future strategy for Arvind Mills can be described based on strategy

developmentframework. Nearly 50% of the Arvind Mills revenue is generated from the exports market. In Europe the capacity build up inTurkey poses a huge challenge and the countries like Pakistan and Bangladesh are showing as new threats in thismarket. Arvind Mills need to defend this market by focusing on process innovation and following a cost player strategy. Improving its supply chain and inventory management through further tying up with farmers, usage of ERPsystem and increase in the plant efficiency with the use of technology are some of the process innovations it shouldfollow.Expected competitor response: These moves are implemented by most of the companies as an ongoing improvementinitiatives, thus we don't expect any dedicated response by competitors to most of these initiatives. But the tying upwith farmers is readily visible and is expected to be imitated by other players. Arvind Mills will enjoy a first mover advantage and by maintaining a better relation this can result in long-term sustainable competitive advantage bysecuring quality cotton supplies.In the exports market it should deepen its base by supplying new products through product innovation like in thedenim category manufacturing ring denim and product mixes with Lycra, which will establish it in new categories. Itshould also work on improving its existing client base by following a client development strategy. As most of theapparel brands in US and Europe are

outsourcing manufacturing, further alliance with establish brands will help itsustain the competitive edge.Expected competitor response: Competitors will also try to expand its client base. As most of the apparelmanufacturers favor only 2-3 suppliers and follow a long-term relationship there are considerable first mover advantages here. Arvind mills here have advantage as it has established its credibility and has been successful inmaintaining a long-term successful relationship with some of the big names. It can also leverage its huge capacity.In product innovation Arvind mills is at disadvantage to its Chinese counterparts who have bigger sales and profits,which can result in frequent product innovations and faster imitation in meeting the demands.In the domestic market the growing Indian economy and hitherto explored rural market, provide it withopportunities to spread its legs. Its strategy to establish itself in two different segments niche and mass market wouldhelp it in capturing these markets. Affordable brands like Newport can be a good start to penetrate the rural marketand the middle class segment in the urban market. While the niche brands like Arrow will cater the needs of theniche consumers.Expected competitor response: There is expected to be fierce competitor reaction to this move. With increasingnumber of players in urban garments market, players will move and explore the rural market. Established playerslike Madura garments already have product range, which it can aggressively market to counter this move In the Indian apparel market, retailing and branding was never considered by the Indian garment manufacturersexcept by a few major players like Raymond and the woman formal wear section is mostly ignored by themanufacturers. Arvind Mills through ABL should concentrate on domestic retailing and branding which could giveit higher margins and a brand image, also as the number of working woman in India is increasing, developing thewomen formal wear market could give it a significant edge. An established brand will be able to command a brandloyalty and will give it a sustained competitive advantage. By building prime locations brands can be further exploited while giving additional competitive advantage.

PIONEER STRATEGIES OF THE COMPANY

The Arvind Mills franchise since its establishment in the 1930s, has been witnessing significant growth and success. In 2005, mulitifiber agreements were getting phased out along with the disbanding of quotas, and the international textile trade was likely to grow. In the domestic market, the growth of the organised retail industry and the rationalising of the cenvat chain were likely to make textiles and apparel witness an explosive growth.

The Arvind Mills franchise had formulated an aggressive strategy to streamline its current operations by setting up top scale garmenting facilities and providing services through a one-stop shop by offering garment packages to all its international and domestic customers. The textile business is likely to become one of the largest apparel brand in India, with its international licenses for Wrangler, Lee, Tommy Hilfiger and Arrow along with its domestic brands.

The domestic brands of the apparel franchise include Newport, Flying Machine, Excalibur and Ruf & Tuf. The Arvind Mills franchise has been a pioneer in changing customer demands for textiles across the globe and it has focused on selecting core products. This focus has enabled the textile business to play a dominant role in the world textile arena.

With the presence of the Arvind Mills franchise across the textile value chain, it endeavours to be a one-stop shop for all the leading garment brands. 30.05.2007

STRATEGIES FOLLOWED BY THE COMPANY

Two hundred and forty million metres of cotton fabric, eight million pieces of garments, 10 international apparel brands, and Megamart, the value retail chain. All these are Arvind Ltd today. Arvind's financial performance over the last four years is the tale of a transformation. Since 2008, revenue has grown at a compound annual growth rate (CAGR) of 17 per cent to Rs 4,925 crore (in fiscal year 2012), earnings before interest, taxes, depreciation and amortisation (EBITDA) has grown at a CAGR of 15 per cent to Rs 602 crore. This transformation is the result of a strategic roadmap we prepared four years ago. It visualised a four-pronged strategy: create a portfolio of diversified businesses, develop a strong business to consumer business model (B2C), expand the share of domestic revenue in the total pie, and achieve growth without using incremental debt.

In 1997, Arvind undertook a major expansion plan. We were setting up a Rs 1,000 crore complex in Gujarat. We borrowed money against the project but it took time to be commissioned and become profitable. There were overruns due to depreciation of the rupee, denim entering a downward cycle and flooding in the area where the complex was being built. This led to an accumulated loss of over Rs 500 crore. To turn Arvind profitable again, the debt of Rs 2,700 crore was restructured. The key learning from this experience was to not leverage the balance sheet. If things no one can plan for happen suddenly, there will be financial problems.

What also contributed to Arvind's return to profitability was that denim had started to come out of its downward cycle. Denim has been the largest business for us for years. It is a lucrative business, but cyclical in nature. As a part of the de-risking strategy, we decided to grow non-denim businesses. We restructured our shirting fabric, khaki fabric and knits business.

Although textile earns higher margins, it is also a capital intensive business. The brands and retail business offers high growth, but relatively low margins. It also

requires lower capital. We decided in future, the brands and retail business would be a major growth driver. Here we again adopted a four-pronged strategy: launch new brands to fill market segment opportunities, expand distribution reach, extend successful brands to newer categories and rapidly roll out the Megamart hub-andspoke model. Thus, the brands and retail business has been growing at a CAGR of 25 per cent since 2008. We also have a strong portfolio of international brands, including Arrow, US Polo, Izod, GANTT, Tommy Hilfiger, and Elle.

We also created a B2C vertical, Arvind Stores, to retail fabrics in India. Today, the share of B2C sales is almost 40 per cent against less than 20 per cent four years ago. Monetisation of surplus land helped in reducing our financial leverage. So far, we have realised cash flows of Rs 255 crore.

Today, Arvind is well poised to seize the huge opportunities before the Indian textile industry

COMPETITORS OF THE COMPANY

RAYMONDS The Raymond Shop is a premium retail store offering complete wardrobe solutions to the discerning man through its range of fine fabrics for suits, jackets, trousers, shirts & finely crafted garments from Raymond, contemporary range of readymades from Park Avenue, stylish casual wear for occasions beyond work from Parx, smart casuals from ColorPlus and luxury formals from Manzoni. It also offers Made to Measure a unique offering for a perfect comfort fit. Added to this is quality Custom Tailoring services which makes The Raymond Shop an ideal destination for anyone to look good and feel great. The Raymond Shop has been a pioneer in organized retailing in the country starting around five decades ago. The Raymond Shops wide reach and range of products,

makes it the largest one stop retail network in the country. This chain of shops has over the years become a yardstick by which other retail stores are judged. The retail chain constantly sets new standards and creates environments that make shopping a pleasure.

BOMBAY DYING Established by Nowrosjee Wadia in 1879 as a small operation of Indian spun cotton yarn dip dyed by hand, Bombay Dyeing has now grown to be one of the most respected and trusted brands in the country. Since the first store in 1879 and the only store manager, the growth has not only been in our presence, but also in of how much we offer today. Stylish linens, towels, home furnishings, leisure clothing, kids wear and a whole blissful range of other products are now available across 350+ exclusive Bombay Dyeing Retail or 2000+ Multibrand Stores. All products come with our hallmark finish, great textures, detailed design to match the latest trends and fine quality which has been synonymous with Bombay Dyeing for over a century. Delivering the best designer products at an outstanding value for money has always been our motto and forte.

SIYARAM Siyaram silk operates through divisions like fabrics, yarn, garments, furnishings, And exports. It offers textile brands like siyarams , Mistair , J.Hampstead, oxemburg, miniature and featherz. The company operates four weaving plants, two yarn plants, and a readymade garment plant spread across Maharashtra and Gujarat. It has an

installed capacity of 367 looms, 439 stitching machines , and 4500 tons of yarn dyeing capacity, of which 1500 tones were installed in FY07. Siyaram silk has also ventured into retail, opening a few shops where all its brands will be under one roof. Siyaram silk exports to countries in Europe, the Middle East, Africa, Australia, America, and Latin America. In FY07, the sale of readymade garments grew by around 32%, whereas the sale of yarn grew by around 28%. For the same period, the company installed 99 looms, which increased fabric-weaving capacity by 5 MMPA. In FY07, it formed two subsidiaries namely Siyaram Polycote Ltd and Oxemberg Clothing Ltd.

ZODIAC CLOTHING Zodiac Clothing Company(ZCL), promoted by M Y Noorani and Others, was incorporated as a private limited company in Jun 1984, is into manufacture and export of readymade garments. It became a deemed public limited company in Dec. 1993 and went public in Jan. 1994. ZCL set up a 100% EOU at Umbergaon, Gujarat, to manufacture and export of Men's clothing including shirts, beach wear and pyjama suits with an annual licensed capacity of 100,000 units in Dec. 1984. Initially, it concentrated on the erstwhile Soviet Union by selling to the Central Buying Organisation. In the late eighties, the company also started exploring the sophisticated markets of western Europe. Three companies -- Zodiac Textiles & Apparels Export, Multiplex Packaging, and Bangalore Knitwear -- were amalgamated with ZCL. To upgrade production techniques and to meet the exacting quality standards of west European markets, the company, re-designed and modernised its entire plant with technical assistance from a leading European company in 1989. The company went public with its maiden issue in Jun.'94 at a premium of Rs. 100 per share to dilute the promoter's holdings to 75%. It has installed a new production facility in Bangalore

with a capacity of 5 lac shirts per annum. Commercial production of this unit has commenced in July 1995. Also to boost its export it has invested in a fully-owned subsidiary in Switzerland in Jun.'95, This has enabled the company to increase its export. ZCL have three subsidiary companys i.e. Mayfair, Multiplex Collapsible Tubes & Zodiac Clothing Co S.A. During 2002-03 Mayfair the subsidiary of ZCL was amalgamated with the company following the approval from High Court of Mumbai. It has acquired the whole business of Metropolitan Trading company a manufacturing readymade garment on a going concern basis. The company entered into a technical agreement with Zodiac UAE LLC Dubai for a period of 5 years