Mills Ltd

Prepared By:
Chetan Panara
Jay Ajudia
Kapil Rajput
Kaushal Dhakan
Kulvinder Singh Dhaliwal
Nikunj Patel
Pranay Chauhan
 INDUSTRY ENVIRONMENT
• Indian textile industry and Market Size
 Textiles sector contributes to 14 per cent of industrial production
 4 per cent of National GDP
 10.63 per cent of country's export earnings
• Market Size
 India's share of global textile exports is expected to increase
from the current 4% to around 7% over the next three-years
• Growth Rate
 3-4 percent during the last six decade
 9-10 percent during last five year
• Scope of rivalry
 Raymond India
 Welspun India Ltd
 Alok Industries
 Indian Rayon
 Gokaldas Exports
General Environment of Textile Industry
• Technology

• Demographic Trend

• Economic Trends

• Political and Legal

• Socio Cultural

• Global
 Porter Five forces
• Risk of new entry by potential competitor
• Brand Loyalty
• Absolute cost Advantage
 Largest producer of jute
 Second largest producer of silk
 Third largest producer of cotton, accounting for nearly
16% of global production
 Third largest producer of cellulosic fibre/yarn
 Fifth largest producer of synthetic fibres/yarn
 Eleventh largest producer of wool
• Customer switching cost
 Cont..

• The extent of rivalry among established firms

 Exit Barrier
 Industry Demand
 Industry competitive structure

• The bargaining power of buyers

• The bargaining power of supplier

• The threat of substitute product

 Industry Analysis
• Industry Attractiveness
 Favourable factor conditions
 Favourable domestic market
 Government initiatives to promote investment
 Product development and design
 Technology Up radiation

• Current Strategies
 De-risking the business model
 Integration
 Product Mix Diversification
 Internal Environment
• Financial performance of the company

• World class manufacturing capabilities

• Multiple Brand Stores
• Department Stores and Malls
• Exclusive Brand Outlets
• Utilities
• Technological Resources
 ANUP Engineering
 ARVIND ACCEL
 Resources
• HR vision
 Be The Foundation That Integrates Culture, Vision &
Values , Creates an Environment That facilitates The
Maximization of Human Potential.
• Endeavour
 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.
 Cont
• Innovation Resources
o Fire Protection Fabrics
o Chemically treated Flame Retardant Fabrics
o Inherent Fire Resistant Fabrics
o High Tech Applications
• Filtration Fabrics
• Anti-Ballistic Fabrics
• Nylon Fabrics
• Carbon-Glass-Aramid Fabrics
• Core Competencies
o Shuttle looms for Selvedge denim
o Name selvedge and Stretch selvedge
o Unique Fibers like Excel, Jute, Silk, Linen
o Natural Indigo and Vegetable dyes
o Unique concept products like Indigo voiles & Handspun denim
o Organic, BCI & Sustainable denim
 Value Chain Analysis
• Primary activities
– Spinning department
– Weaving department
– Dyeing department
– Finishing department
• Supportive Activities
– Quality Assurance department
• laboratory
– Cotton laboratory
– Chemical Testing Labortary
– Colour Quest Labortary
– Calibration Laboratory
• Inspection Department
• ISO & EMS Department
• Marketing Department
• Human Resource Department
 Strengths
Strong portfolio of domestic and international Weakness
brand Less productive machines in process
Economies of scale through complete integration Presence in only big city
Latest Manufacturing tools Not doing enough to build brand equity
Wide geographical presence

SWOT
Opportunities
Changing retail scenario
Threats
Global demand of denim fabric
Competition from global player
Price Competitiveness
Cheap Labor
Decline in exports
Debt Restructuring Cheap import from china ,Bangladesh, Thailand
Product Diversification Rise in raw material price
Forward Contracts for Naphtha and Cotton
Duty waive-off after post 2005 liberalization scenario
 Implementation of Strategic Actions
• Business level /competitive strategies
 Improve cash management minimize \borrowing
 Improve collection, reduce receivables
 Improve capacity utilization
 Increase inventory turns
 Improve customer retention and loyalty
 Gain/enhance market share
 Enable cross sell up capabilities
 Improve product and customer profitability’s
 Enable and enhance channel partner effectiveness
• Corporate Level Strategy
 To become the market leader
 Support strategic planning
 Product portfolio optimization
 Improve capital budgeting and allocation process
 Enhance innovativeness and change management capabilities
 Cont….
• Diversification – Unrelated Diversification

• M&A

• Restructuring

• Corporate Governance measures

 Ethics and Corporate Social Responsibility

• Education
• Upgrading slums
• Vocational Training
• Medical Care And Research
• Education – Professional, Cultural, And Research Bodies
• Human Development
• Two trust run by Arvind ltd.:
 Sharda trust
 Lalbhai rural development fund
Thank You!