This action might not be possible to undo. Are you sure you want to continue?
The Lalbhai group- Arvind Mills
In the year 1930, the world suffered a traumatic depression. Companies across the globe began closing down. The textile industry was in trouble particularly in UK and in India. At about this time, Mahatma Gandhi championed the Swadeshi Movement and at his call, people from all India began boycotting fine and superfine fabrics, which had so far been imported from England. In the midst of this depression one family saw the opportunity. The Lalbhais reasoned that the demand for fine and superfine fabrics still existed. And any Indian company that met this demand would surely prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai decided to put up a mill to produce this superfine fabric. Next they looked around for state-of-the-art machinery that could produce such high quality fabric. Their search ended in England. The best technology of that time was acquired at a most attractive price. And a company called Arvind Limited was born. Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year 1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.
Founding fathers- The Lalbhais
The Lalbhais can trace their descent from Seth Shantidas (c.15901659), who was a dominant figure in the business and civic life of
Few groups could claim to have made such great strides during one of the worst periods in India’s industrial history. Kasturbhai had also floated mills for families of his three sisters under the name of Aruna Mills in 1928 and Nutan Mills in 1931 and Ahmadabad New Cotton Mills in 1938. Due to untimely death Lalbhai Dalpatbhai the reins of his businesses were handed over to his young sons including a seventeen year old Kasturbhai Lalbhai. During the intensifying Swadeshi movement the second company Raipur Mills was established in 1905. With the expansion Kasturbhai came to occupy the position of the biggest textile magnate in the country. His grandson. Due to untimely death of Lalbhai Dalpatbhai the reins of his businesses were handed over to his young sons Kasturbhai Lalbhai. Saraspur Manufacturing Company was established in 1897. It started with producing cotton yarn. 5 Lakh.12 Lakh at a time when the largest mills in the region were built with not more than Rs. Khushalchand. During the intensifying Swadeshi movement the second company Raipur Mills was established in 1905. He enjoyed the patronage of the Moghul emperors to whom he was a trusted jeweller and also prominent financers of his time. The first manufacturing company of the Lalbhai family. Kasturbhai started the first large scale textile mill under the name of Asoka Mills in 1920 with a capital of Rs. Saraspur Manufacturing Company was established in 1897. Narottambhai Lalbhai and Chimanbhai Lalbhai. The current surname. The first manufacturing company of the Lalbhai family.the city. is derived from Lalbhai Dalpatbhai the great great great grandson of Khushalchand. Lalbhai. . (1680-1748) too occupied a place of prominence in the business and social life of the city. Lalbhai was born around the time when the first textile factory in the city went into production. The Lalbhai Family Lalbhai Dalpatbhai Lalbhai was born around the time when the first textile factory in the city of Ahemdabad went into production.
He started off as a timekeeper in the mill. Jawaharlal Nehru. The boom in demand during and post-World War I helped him in stabilising the operations of the firm. In 1912. when he was studying in college. In 1952. hence. By the time of Lalbhai's death. In 1931. Kasturbhai had to take care of operations closely. He devoted more time to public activities. With time. Kasturbhai started handing over the operations of his businesses to his relations. he was asked to discontinue his studies so as to help in the family business. he founded Arvind Mills that manufactured fine and superfine varieties of clothes as opposed to the coarse variety of cloth produced till then by the Indian mills. India’s first modern dyestuff manufacturer in collaboration with American Cyanamid. He retired from business in 1977 and died in 1980 in Ahmadabad. he had to drop mid-way out of college to help in his family business. His father Lalbhai had divided property among his brothers only in the recent past. as his and his sons’ share. his father died and being the second son. Narottambhai Lalbhai and Chimmanbhai Lalbhai Kasturbhai’s school education took place in Ahmadabad and he matriculated in 1911. Lalbhai had received Raipur mills. he started working with suppliers of the mill and travelled far and wide to understand the supplier market. It was inaugurated by India’s first Prime Minister. He was awarded the Padma Bhushan. and this unfulfilled desire for higher education found expression in his institute building. India’s third highest civilian honour in 1968 by the Government of India. As a youth. As a director of the Reserve Bank .GENERATION I Kasturbhai Lalbhai. but fed up with the repetitive nature of the job. he started Atul Limited (literally beyond compare) which is located in Atul . a new establishment. One of the most important roles played by Kasturbhai was in promoting institutions that would serve the country and the industry well. the operations of the mill had not yet stabilised.
000 crore Lalbhai Group. Arvind Lalbhai was among three brothers who founded the Arvind Mills in 1931. which today is amongst the top textiles companies of the country and is the flagship company of the Rs.of India from 1937 to 1949. He also established the Lalbhai Dalpatbhai Institute of Indology in 1962. which later evolved into the Gujarat University. The society also donated land for the establishment of the Indian Institute of Management Ahmadabad (IIMA). was the driving force behind IIMA. along with Vikram Sarabhai. He along with Sheth Shri Amrutlal Hargovindas. He was also the president of the Ahmadabad Mill Owners Association. . To promote engineering and technology in India he built engineering college in 1948 just adjacent to Gujarat university on his father's name Lalbhai Dalpatbhai college of engineering. Shri Ganesh Mavlankar started the Ahmadabad Education Society in 1936. 2. He commissioned worldrenowned architects such as Louis Kahn and Charles Correa to design some of these institutes. Thus. he was not only known as a businessman but also an institutebuilder. He promoted ATIRA – The Ahmadabad Textile and Industries’ Research Association before independence. the Gujarat Chamber of Commerce and Industries and the Gujarat Small Scale Industries Federation. He was on the board of IIMA but declined to accept the position of its chairman. GENERATION II Arvind Lalbhai Born on April 3. 1918. he ensured that Indian employees were groomed well to run operations in an Independent India. He served the textile industry in several capacities. which proved to be effective in increasing the competitiveness of the mills in Ahmadabad. Kasturbhai. including as chairman of the textile committee in 1980 and the Indian Cotton Mills Federation in 1982.
. of ethics in business and trusteeship in governance. Siddharth Lalbhai is a chemical engineer. Ajaybhai Lalbhai are other members of the second generation of the family holding important positions in the group companies. GENERATION III Sanjay Lalbhai Born in the year 1954. USA. Sanjay Lalbhai holds a Bachelors' degree in science from Gujarat University and Master's degree in Management Studies from the University of Bombay. simplicity and determined low profile.. . he lived by. the personal qualities. Amol Dicalite Ltd. and Arvind Overseas Mauritius Ltd. of uncompromising integrity. Siddharth Lalbhai accorded equal value to creation of wealth and service to society. as Managing Director of the Arvind Mills Limited. a large integrated textile mill. but also of human vision and endeavour for the progress of rural India. The principles. His other directorships include Arvind Mills Ltd.. with the right motives will continue to remain a guiding force. a unique story not only of a business enterprise.. Arvind Worldwide (Mauritius) Inc. He has dedicated his entire life to the development of Atul. he upheld. Siddharth Lalbhai Kasturbhai’s son. Arvind Spinning Ltd. Mauritius. — PTI. in the right direction. Sudhirbhai Lalbhai.He also worked on various committees and panels of state and Central government and was a member of the Customs and Central Excise Advisory Council of India. Niranjan Lalbhai.. He is one of those renowned entrepreneurs who have managed to put Ahmadabad on the global map in the context of its successful textile industry. the single-minded devotion he gave to the tasks on hand and the sustained commitment he had of taking the right steps. He passed away in August 2001 at the age of 89. Shrenik Lalbhai. Arvind Worldwide Inc. He is associated with the Company since 2003.
Previously he was a Managing Director of The Arvind Mills Limited. 49. 2007. he was appointed by the Government of India as the Convenor of the Sub-Group on Dyestuffs and Intermediates for preparing a Perspective Plan for Chemical Industry until 2000. he is Chairman and Managing Director of the company. He is actively associated with Ahmadabad Textile Mills Association. he worked as a trainee with Imperial Chemical Industries plc in the UK for 6 months. since January 2000. He is a Director on the Board of Wyeth Ltd and Navin Fluorine International Ltd. In 1991.Sunil Lalbhai Sunil S Lalbhai. He is a member of the Governing Council of Lalbhai Dalpatbhai Institute of Indology and Shree Vallabh Shikshan Sangeet Ashram. 48. 1984. since 1984. Ahmadabad Textile Industry's Research . Indian Cotton Mills Federation. 1983 and became Managing Director on July 1. He joined Atul Ltd on January 1. he was appointed by the Government of India as the Convenor of the Sub-Group on Dyestuffs and Dye-intermediates for preparing a draft report for Chemical Industry for 11th Five Year Plan (2007-12). Since August 29. In 1991. has been a director of Atul Co. After his studies. In 2006. Samveg Lalbhai Samveg A Lalbhai. Gujarat Chamber of Commerce and Industry. has been on the Board of Directors of Atul Co. he was appointed by the Government of Gujarat as the Convenor of the Technical Panel on Chemicals and Dyestuffs constituted for preparing a blueprint for the development of Dyestuff Industry until 2002. He is the Chairman of the Remuneration Committee and a Member of the Audit Committee of NFIL. He obtained MS degree in Chemistry from the University of Massachusetts and MS degree in Economic Policy & Planning from Northeastern University.
the elder son of Sanjay Lalbhai. Arvind is the leading denim brand in Dubai. Anang Lalbhai : Anang Lalbhai who is the son of Ajaybhai Lalbhai is currently the MD and CFO of the Arvind products. 24. The sixty year heritage of operating at the cutting edge of marketing and technology helped Arvind put India on the world denim map. a subsidiary od the Arvind mills. GENERATION IV Punit Lalbhai : Punit. He is handling energy management and alternative feed for the power plant. and one of the largest in the Middle East. Kulin Lalbhai : Kulin. joined the family business in 2009. Arvind is the second largest source of imported denim in the USA and the third largest in the UK. . He was appointed as the chief manager of the project division in 2008. besides heading the group’s organic farming foray on 10. He is currently Chairman of The Anup Engineering Ltd. The Lalbhai group of companies: Textiles/ Yarns/ Garments Arvind Mills Limited Arvind Mills is the flagship company of the Lalbhai Group. is a postgraduate in environmental science from Yale University. The principal business segments of the company include manufacturing and marketing of Voiles fabrics.000 acres in the Vidarbha region of Maharashtra.the younger son of Sanjay Lalbhai and an electrical engineer from Standford University. Arvind Products Limited The company is a subsidiary of The Arvind Mills Limited.Association and FICCI. 27.
from basic commodity chemicals to speciality intermediates required for the agrochemical.Bottomweight fabric (khakis) and Yarn. Drugs and Allied Industries. . Cyanamid India Ltd. defence. The company has grown to become India's largest dyestuffs manufacturer. Arvind Telecom is a division of The Arvind Mills Limited. Refineries. set up in 1947. and is ideally poised to capitalize on the liberalization of India's telecom sector. leather. The company has tied up with E. Over the years.600 crore Atul Products. Comdial (USA) and France Telecom to offer value. paper. Atic Industries Ltd and Cibatul Ltd respectively. Arvind Cotspin (manufacturing 100% cotton yarn and double yarn in a wide range of counts and varieties) and Ankur Textiles (manufacturing of voiles) Others Atul Products Limited The Rs. dyestuff. Imperial Chemical Industries plc (1955) and Ciba-Geigy Ltd (1960) to form respectively 3 joint venture companies. pharmaceutical and textile industries. namely. The company is on the lookout for collaborations with international leaders. Johnson (USA). to strengthen its' technological base. Fertilizers. The company operates through its divisions viz: Arvind Intex (with both ring and open end yarn manufacturing under one roof). Atul Ltd joined hands with American Cyanamid Corp (1952). is one of Asia's largest and greenest chemical complexes. Pharmaceuticals. F.added telecom services. Anup Engineering Limited Anup Engineering is one of the leading Engineering companies engaged in manufacturing process equipment for Chemicals. Atul exports to more than 50 countries. Arvind Telecom Arvind Telecom manufactures C-DoT based RAX's. making and marketing over 250 varieties of chemicals and intermediates. Petrochemicals.
Anup Engineering is an associate company of The Arvind Mills Limited. Delhi. Amol Dicalite Limited Amol dicalite limilted is a group company with the business ranging from Textile clothing to Filter Aids to Perlite Products. The company intends to capitalize on the demand for housing and real estate in India. . Lalbhai Realty Limited Lalbhai Realty is Arvind's foray into the India's booming real estate business. Bangalore and Ahmadabad. by setting up state-of-the-art office and residential complexes. Projects are already underway in Mumbai. Lalbhai Realty is an associate company of The Arvind Mills Limited.
It has international licenses of Lee. 3. Wrangler. It is the second largest source of imported denim in the USA and the third largest in UK. It has a wide geographical presence. Tommy Hilfiger and its own domestic brands like Flying Machine. 2. Excalibur and Ruf & Tuf. The company lacks fresh ideas. 2. Opportunities 1. 4. This is a huge opportunity for any textile company. Arvind is the leading denim brand in Dubai and one of the largest in Middle East. . Ability and willingness in India. 4. because the buying capacity has increased over the years. The Arvind mills has a strong portfolio of domestic and international brands. Even the small cities have excess to every product.A SWOT analysis on The Arvind Mills Strengths 1. 3. 2. Weakness 1. Arrow. The retail scenario is changing in the country. One of the biggest strengths of the group is their belief in joint family which result in unity and thus blankets any difficulties that the sister companies faces. The rising prices of inputs like raw material. One of the advantages that The Arvind Mills has is the use of latest manufacturing tools. They are not doing enough to build their brand equity. There is a rapid growth in the age group 15-44 years. The presence of the Arvind Mills is felt only in big cities. Newport. They are following their old strategies. 3.
Cheap imports from countries like China. 2. provide it with opportunities to spread its legs. the future strategy for Arvind Mills can be described based on strategy development framework. 3. Huge number of competitors like Raymond. Competition from small town stores and speciality stores adapting aggressive growth strategies as well as eyeing big cities.4. Madura garments. Affordable brands like Newport can be a good start to penetrate the . 4. As textile Industry identified as core sector of India and its shifting to developing countries like India there are plethora of opportunities for Arvind Mills. Threats 1. which will establish it in new categories. Improving its supply chain and inventory management through further tying up with farmers and use of technology are some of the process innovations it should follow. Bombay Dyeing. It should also work on improving its existing client base by following a client development strategy. In the domestic market the growing Indian economy and hitherto explored rural market. The rate of excise duty. Thailand and Bangladesh. Nearly 50% of the Arvind Mills revenue is generated from the exports market. Its strategy to establish itself in two different segments niche and mass market would help it in capturing these markets. In the exports market it should deepen its base by supplying new products through product innovation like in the denim category manufacturing ring denim and product mixes with Lycra. Future trends and strategies for the company Looking at the distinctive competencies achieved by Arvind Mills through vertical integration. diversification and huge capacity setup. But Arvind Mills need to defend the market by focusing on process innovation and following a cost player strategy.
Arvind Mills should concentrate on domestic retailing and branding which could give it higher margins and a brand image. By building prime locations brands can be further exploited while giving additional competitive advantage. also as the number of working woman in India is increasing. developing the women formal wear market could give it a significant edge. While the niche brands like Arrow will cater the needs of the niche consumers. An established brand will be able to command a brand loyalty and will give it a sustained competitive advantage.rural market and the middle class segment in the urban market. SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES PRINCIPLES AND PRACTICES OF MANAGEMENT ASSIGNMENT 1 Research paper: Lalbhai GroupArvind Mills .
: 06 Batch : 2010-2012 PRN: 10020441006 .Name Class : Aditi Puri : IA Roll No.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.