Arvind Mills Project PDF

INTERNSHIP ON ARVIND MILLS LTD.
1. INTRODUCTION ABOUT THE INTERNSHIP, INDUSTRY PROFILE
INTRODUCTION ABOUT INTERNSHIP:

The internship program is which provides opportunity for students to take part in field
of experience to share insights to explore students. The internship is like bridging the
gap between the knowledge and its application through a series of interventions will
enable study of VTU MBA program. The internship program was done for 4 weeks
period from June 25/06/2018 to July 21 /07/2018on a topic “Organization Study” at
Arvind Mills Ltd. Bangalore Karnataka.
The organizational study was conducted at Arvind Mills Ltd., Bangalore. The
objective of undergoing this training was to get practical exposure to the structure and
functioning of the organization. It was also meant to study the activities of various
departments such as finance, marketing, production, human resource, purchase, store
and service etc. This study helps the management for knowing their default areas in
employee career planning and development and also helps them for implementing
better career planning and development and also helped me to understand
organizational structure, functions of different departments , products and services ,
strength, weakness, Opportunities and threats of the company, financial position of
the company, And also to gain knowledge about the organizational atmosphere and to
find the importance of this industry in the society.
INDUSTRY PROFILE:
The garment industry in India occupies unique position in our economy contributing
to nearly a third of the country export earnings. This industry includes manufactures,
suppliers, wholesalers and exporters of readymade garments. From the production of
textile machinery and equipment, dyes and raw materials to the delivery of finished
textiles, fabrics and garments, the garment industry in India has increased rapidly after
independence.
A forerunner in international markets, the garment industry in India is widely

acclaimed and acknowledged for its good quality stitching and service. Readymade
increase in total exports garments which comprise mainly 40% of the total textile
exports were at US$ 3974.8 (Rs 180443.4 million) for April-March 2016.
BNM Institute of Technology Page 1

The Indian garment industry is the 2nd largest in the world where as first being china.
Indian garment also accounts for 38% of the country’s total export and is, therefore a
very important industry. The forecast is that the garment exports will reach USD 50
billion by the year2010.
A large and growing presence in the manufacture of ready-made garments - jeans,

shirts and knits – has further seen Arvind’s rise as a one-stop solution provider for
leading global and domestic apparel brands.
Finally, the Company’s direction and rapid growth in the branded apparel and retail
business along with a more recent involvement in the growing of organic cotton, has
consolidated its presence through the apparel value chain.
2. ORGANIZATION PROFILE
2.1 COMPANY BACK GROUND:
Arvind accomplishes that by aiming to attract, retain and nurture talent. The
development of the individual is all-important and as long as there is learning, there is
job satisfaction. That explains Arvind’s HR policy and its emphasis on learning and
skill enhancement.
Training calendars keep our people busy across businesses, encompassing technical,
functional and behavioral modules. Training is imparted on the job, as well as through
classrooms and seminars.
Career and succession planning initiatives are implemented through role elevation and
enhancement, evaluating intercompany and inter unit opportunities, and special
development plans for top talent. Arvind employs 20324 people as workmen and over
5296 people as management staff, making it one of the more prolific employers in the
state.
History has been witness to the Arvind Group’s commitment to excellence,

innovation, perseverance and undying attention to customer and societal needs. As an
organization, Arvind has successfully integrated diverse businesses, services and
products, unified by a common vision - of enriching lifestyles.
This policy of change has fetched us well deserved results. Arvind’s adoption of new-
age fabrics has seen the Company emerge as one of the largest denim manufacturers
in the world, while also bringing us global recognition for the manufacture of shirting,
khaki and knitted fabrics.
A large and growing presence in the manufacture of ready-made garments - jeans,

shirts and knits – has further seen Arvind’s rise as a one-stop solution provider for
leading global and domestic apparel brands.
Finally, the Company’s direction and rapid growth in the branded apparel and retail
business along with a more recent involvement in the growing of organic cotton, has
consolidated its presence through the apparel value chain.1930 was a year the world
suffered a traumatic depression. Companies across the globe began closing down. In

UK and in India the textile industry in particular was in trouble. At about thistime,
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 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.
2.2 NATURE OF BUSINESS:
The company was established in the year 1931, Arvind Ltd denim Division was
established in 1987 and it is a private limited company and since has grown to
become world’s third largest and Asia’s largest denim producer with turnover of over
US $180 million. The goods mainly manufactured for exports, the fabric needed is
manufactured in house and also from outsiders.
The goods manufactured here are of international quality Arvind denim has a capacity
of producing 100 million meters per year. Arvind Denim is exported to more than 70
countries all over the world besides catering to the domestic market.
The total workforce in the Arvind limited is around around3000 apparels, in this the
male apparels are around 1112 and female are around 1756.Coming to the department
wise, in the cutting/knitting section there are around 46 ,in the sampling section there
are around 60,in the sewing section 500, in mechanics section 12,in the pressing 30, in
the finishing/trimming 200,in the washing section 800, in the packing 30, and in the
other sections around 50.

2.3 VISION, MISSION, QUALITYPOLICY
Vision: “To achieve global dominance in selected business which is built around their
core competencies, through continuous product and technical innovation, customer
orientation and a focus on cost effectiveness?”The underlying theme running across
the broad spectrum of all business activities at Arvind is that of enhancing lifestyles of
people, across all diversities and demographics.
Mission:
 To be one of the top there producer of the denim in the world.
 The Arvind philosophy is aimed at giving committed and full support, service
and value to their customers and develops trust as long term business
Partnerships.
 Optimizing usage of cotton, energy, chemicals &water.
 Adopting preventive strategies to reduce the generation of effluents, waste &

air emission.
 Increasing the green cover.
 To ensure that high quality levels are achieved in terms of consistency an

appropriate selection of machinery has been made.
 To undertake diversification programmes.
 To play an active role in the development of the society.
Quality Policy:
a. Environmental Policy
Arvind mills commit it to continuously improve environmental management

through:
 Optimizing usage of cotton, energy, chemicals and water.

 Adopting preventive strategies to generation of effluents,

waste and air emission.
 Maximizing the recycling of inevitable wastes.
 Encouraging suppliers and buyers to become

environmentally responsible. Maintaining a safe working
environment.
 Increasing the green cover.
 Training employees in environmental issues.
Effluent Treatment Facilities:
All the production/processing units are provided with adequate waste water/waste
treatment facilities, to meet the requirements of regulating authorities as well as their
reputed customers like Levis, Nike etc.
Arvind mills at Santej have one of the largest effluent recycle plants in Asia with
recycling capacity of 10500 meter cube per day.
The Arvind international (divisional) has effluent recycling facility comprising

chemical, biological and tertiary treatment and it is of 800 meter cube per day
capacity. The plant has ISO 9000 and ISO 14000 certification.
Arvind Mills at main site in Naroda also possesses chemical, biological treatment
facilities to treat 10000 meter cube of effluents to meet the pollution control board
norms. Arvind Mills (Garment export division) which is set up in Mysore road in
Bangalore along with effluent treatment plant of 1450 meter cube per day capacity.
This plant also possesses chemical, Biological and tertiary treatment facilities to
achieve the state pollution control board norms. The uniqueness of this plant is-all its
process of water requirement will be attained through recycled sewage water of
Bangalore city.
2.4 PRODUCT PROFILE:

With the above mix of machinery the company has specialized in making bottom
wears. Arvind produces basic five pockets, boot cuts, flares, engineered jeans, cargos,
carpenters and customer specific high fashion styles as well. They can also
manufacture skirts and shorts.
Arvind produce basic 5 pockets, boot cuts, flares, engineered jeans, cargos, carpenters
and customers specific Hi fashion styles. They can also manufacture shorts and skirts.
The Brands of Arvind are:
Arrow
For well over a century one brand of clothing has lent us a touch of understated
elegance to broad room battles and power launches the world over. “America’s shirt
maker since 1851 has by now come to be ranked among the better perks the corporate
lifestyleaffords.
Introduced India’s movers and shakers to Arrow in 1993.They set up a hundred

percent subsidiary to manufacture and market Arrow shirts locally. Exclusive outlets
were opened in keeping with brand’s image. Positioned at the top of the line business
wear, Arrow quickly found a loyal following and is currently worth Rs 45 crore.
Lee
Lee is just one instance where Arvind translated an international brand by creating a
local market for it. It’s the only brand in India to offer in seam lengths in each waist
size in order to give customer the perfect fit.
Lee Youth:

They recently introduced the international range of Lee youth, targeted at the eighth
segment of four to fourteen years. The youth wear range consists of Jeans, Overalls,
shorts, skirts and T shirts complemented by a range of fine accessories such as caps,
belts, socks and bags. The brand is being marketed through 40 exclusive Lee stores in
more than 20 cities across the country.
Flying Machine:
Back in mid 80s, Indian jeans was something of a contradiction in terms of shoddy
imitations and small time regional brands ruled a tiny market which was when they
stepped in flying machine. The first Indian brand that measured up to international
standards and also one of the few that had a national presence. Flying machine went
on to become the number one brand in the country, in the process of kick starting the
dormant market of life.
New port:
There was time when jeans used to cost big money which was strange considering the
most of them were aimed at teenagers. That was before when Arvind came along with
new port. Their value for money brand which delivered on the promise of “good Jeans
for less”. It was the first pair of Jeans that a youngster could buy with his own pocket

money.
Today, Newport is by far the largest selling jeans brand in India which has made it
accessible to many consumers who would like to buy into the core value of Jeans
wearers. New port has increased its range of Jeans wear to include over dyed jeans,
gabardines Jeans, knit wear, woven shirts and socks thus making Newport a lifestyle
brand in the economy segment.
Excalibur:
Few things fit the demanding lifestyle of those who live in the fast lane. So they came
up with a wardrobe brand targeted at upwardly mobile executives including products
such as shirts, trousers, blazers,ties,socks and belts in easy care blends, all cut the
latest international styles and similar to international standards.
Made from easy care blends, Excalibur shirts and trousers are highly crease resistant
and retain their flawless shape for hours on end to give a fresh look.
Ruggers:
A golden opportunity to youngsters to get into Polo T shirts ,cotton trousers twills
Bermudas, belts and everything casual… They have created ruggers in order to offer
the consumers a unique casual wear product which will complement the Jeans wear
ranged in exclusive flying machine stores. The ruggers product range for men and
women is wide and strikingly casual designs and colors. The range for women is the
finest with tremendous content of creativity in both styles and colors.
Ruff and Tuff:

All over India, people who lounged around in lungis have been offered an opportunity
to roam around in Jeans (just like all those cow boys of west).Thanks to the brand of
Ruff and Tuff which has probably been the world’s first ever brand ready to stitch
Jeans. With Ruf and Tuf, ready to stitch we understand the whole market. Millions of
people all over the country who till then had to make the imitations because they
could not afford the real thing Arvind gave them the quality the perfect fit and a brand
that they could relate to. All at the right price they went about it systematically right
down organizing, orienting tailors nationwide to rope them into the marketing
process.
2.5 OWNERSHIPPATTERN
Arvind's Shareholding Pattern
Description Percentageofshare(%)
Promoters 43.08
Individuals 18.64
Institutions 18.00
FII 15.54
Govt. 0.00
Others 4.74

Percentage of
share(%)
5
0 %
%
FII
15
Promoter
s
43%
Institution
s
18%
Individual
s
19%
2.6 ACHIEVEMENTS/AWARDS:
Pebbles on the shore-Milestone achieved.
1985 First meter of denim was crunched out.
1990 Introduction of premium shirting’s division.
1993 Office set up in New York, London and Hong Kong.
1994 Arvind ventures into brands-Flying machine acquired.
Beginning of the era
1995 Lee commenced production. Introduction of Ruff and Tuff, ready to stitch
denim.
1997 Commission of state of the art manufacturing unit at Santej.
2002 Arvind does a unique financial restructuring.

2004 Relocation of Mauritius plant at the end of quota regime.
2005 Nafta based CPPI at Naroda and Santej converted into eco friendly gas engines
to become self sufficient.
2006 Amalgamation of Arvind fashions limited to Arvind’s brand limited.
2007 Arvind set up value addition facilities over fabric like printers.
CERTIFICATION
Arvind company has ISO 9000 and ISO14000 certification.
2.7 FUTURE GROWTH AND PROSPECTS:
 Get top management personally involved in sales, marketing, customer service

and growth
 Be open to new or unexpected customers and/or growth opportunities.

3. MC KINESEY’S 7 S MODEL
7s Framework with Reference to Arvind Mills
There are many management approaches. Which talk about managing the things and
Operations in an organization? One of the famous modes to analyze the pattern of
Management is Mc 7’s frame work.
The 7’s model is better known as Mc Kinsey’s 7’s, this is because the two persons
who Developed this module. Tom petus & Robert waterman have been consultant at
Mc Kinsey’s and co at that time. They described that an organization is not that just
structured but consist of 7’ elements. Which can be distinguished into so called Hard
S’s & Soft S’s?
The model is very much helpful in viewing the interrelationship of strategy.

Formation And interpretation it focus Managers attention to a verification of
activities. That may affect the implantation of any strategy as the model originally
developed as a way of thinking more broadly about the problems of organizing
effectively. It is a judge tool for the implantation of the strategy.

STRATEGY
 Client-focused strategy to achive growth
 Focused on limited number of large organisation
 Commands premium margins
 Favours expansion into new devoloping & globally –connected geographies
 Develops deep industry knowledge
 Invest on brand building
 Belives in organic growth through risk averse strategy
STAFF
 Focus on quality of human resourse
 90% workforce are engineers
 At the entry level, Arvind company hiers candidates with superior academic
record, technical skill & high learn ability
 Spends 3% revenue on up gradation of employees skills
SKILLS
 Focus on continues skill improwment
 Mandatory certification for Domain &technology
 Projects at capability maturity model integration (CMMi) level5
 Knowledge management given special focus
STYLE
 Emphasis on devloping leadership qualities
 Open door policy and continues sharing of information

 Inputs from the employee in decision making
SHARED VALUES
 Client value: To surpass client expectation consistency
 Leadership by example: To set standard in our business & transaction, &

bean exemplar for the industry &ourselves
 Integrity & transparency: To be ethical, sincere,& open in all our

transactions
 Fairness: To be objective & transaction-oriented, & there by earn trust

&respect
STRUCTURE
Follows
 Free from organization structure
 Industry business unit(IBU)concept
 Features a large no of small business unit
 IBU operatesindependently
INDUSTRIAL ENGINEERING DEPARTMENT

IED is the technical department, which supports all other department like planning,
stores, production, HR department, sourcing, merchandising, etc. applications of
different techniques to measure and establish the time required to complete the job by
a qualified worker at a defined level of performance is the main theme of IED.
Analysis of various methods to perform the same operation and suggests the best
method of at least time and establishes the time standard to perform the same
operation. IED will review all designs with actually in production floor so as to ensure
that the methods, operation bulletin etc. that developed do not remain a theoretical
exercise by yield the desired improvements.

SAMPLING DEPARTMENT
The samples garment is prepared in the sampling department with great care because
these samples represent the capability of the company and in order to procure orders
to the company. This is done very cautiously checking every minute thing getting the
sample to perfection as per the buyer’s requirements in the spec sheet.
The sampling department also calculates the consumption of fabric required to

produce the garment. The sampling department also access for accessories and thread
consumption for that particular garment.
HUMAN RESOURCE DEPARTMENT
PLANNING is the process including forecasting, developing and controlling by

which a firm ensures that it has the right number of people and right kind of people at
the right places at the right time doing work for which they are economically most
usefully.
Human Resource Planning or Man Power Planning is synonymous. It incorporates all

Human being at all stages in the organization. It is essentially concerned in the
process of estimating and projecting the supply and demand for different categories of
personal in the organization for years to come.
FABRIC DEPARTMENT
As soon as the fabric arrives from the supplier the first and foremost part is to inspect
the fabric. Here in the fabric inspection department four point system used for Piece
Goods Inspection.
Four point system
This system has received the widest acceptance in both Textile and Garment Field &
JC Penny recommended this system.
 It is most lenient system.
 It is simple and easy to understand.

SEWING DEPARTMENT
Sewing department receives fabric bundles of different pieces or parts of garment &
these bundles are issued to the batch to perform a sewing operation.
Here the sewing department consist of six batches among these four are line batches
and other two batches are assembled. Each line batch consists of 40-45 machines and
assembly batch consists of 60-65 machines, this will vary deepening upon the style of
the garment.
WASHING DEPARTMENT
Washing of a garment helps to remove stains, dust, dirt, pencil marks etc. the different
types of washes are:
 Rubber ball wash
 Softener wash
 Plain wash
 Enzyme wash
 Dip and dry
 Stonewash
Rubber ball wash

Special types of rubber balls are used for rubber ball washing. The balls are put into
the machine at the time of washing. Rubber ball wash is mainly used for thick fabrics
to give flowing appearance or to feel smooth. This type of washing is very expensive.
Softener wash
Softeners are used for softener wash to give softness to the garment. Amino silicon is
mainly used. For heavier fabrics different types of softeners are used.
Plain wash
Plain wash is done to remove stains, dust etc. and also to get good appearance.
Enzyme wash
Enzymes are used in enzyme wash. These enzymes dissolve the fibers that are pulled
on the surface of the fabrics and gives smooth appearance to the fabric.
Dip and Dry wash
In dip and dry, the garment is dipped in water and dried. This helps to avoid shrinkage
and to remove sizing material.
Stone wash
Stone wash is mainly used in denim garments to get good luster. Special type of
stones which are said to be pumice stones are used in washing, which improve luster
on the surface of the fabric hence good appearance is obtained. This type of washing
is mainly used for jeans and trousers.
4. SWOT ANALYSIS
The overall evolution of a company’s strengths, weakness, opportunities and threats is

given below

Strength:
 Arvind is an independent and self reliant company.
 Abundant raw material is available that helps the company to control the
costs Availability of low cost unskilled manpower
 Fast growing synthetic fiber industry.
 India is one of the largest exporters of yarn in international market and

contributes around 25% share of the global trade in cotton yarn. Therefore
it’s been real help for Arvind.
 The apparel industry is one of the largest foreign revenue contributors and
holds 12% of total country’s export.
 Arvind has large and diversified segments that provide huge variety of
products.
 Growing economy and potential domestic and international market.
 Arvind has manufacturing flexibility that helps to increase the productivity.
Weakness:
 Arvind is highly dependent on cotton.

 Lower productivity in various segments due to lack of skilled employees.
 Decline in raw material in production.
 Lack of enhanced technological development in garment manufacturing.
 Unfavorable labour laws.
 Higher indirect taxes, Power and interest rates.
 High attrition rates.
 Lack of proper water supply channels.
 Sewage disposal problems due to the high toxic chemical contents in it.
 More heat is generated by the machines and it is highly difficult to reduce

temperature of the entire unit.
Opportunities:
 Large, potential domestic and international market.
 Product development and diversification to cater global needs.
 Elimination of quota restrictions leads to greater market development.
 Market is gradually shifting towards branded ready garment.
 Increased disposable income and purchasing power of Indian customer

opens new market development.
 Emerging retail industry provides huge opportunities for the apparel,

Handicrafts and other segments of the industry.
 Greater investment and FDI opportunities are available.
Threats:
 Competition from other developing countries especially China.
 Changing customer preferences and buying habits.
 Continuous quality improvement is needed as there are different demand

patterns all over the world.
 Elimination of quota system will lead to fluctuation in export demand.
 Threats from power loom and handloom products are forcing them for
product diversification.
 Changing international and national trade policies.
 International labour and environment allows.
 To balance between price and quality.
 Recession affecting the global economic policy.
5. ANALYSIS OF FINANCIAL STATEMENT

(i) CURRENT RATIO
In order to measure the short term liquidity or solvency of a concern, comparison of
current assets and current liabilities is inevitable. Standard current ratio 2:1

Current ratio = current asset / current liabilities
Year current assets current liability current ratio
2015 2,957,336,240 1,294,747,920 2.284101
2016 3,386,105,993 1,449,551,789 2.335967
2017 3,464,317,361 1,461,286,953 2.370730
Analysis:
In the year 2015 the current ratio was 2.2841and In the year 2016 it was 2.3359 .But
in the year 2017 there was an increase in the current ratio that is 2.3707, by having
current assets worth rupees 3,464,317,361 and current liability worth 1,461,286,953.
5.1.1 Graph showing that Current Ratio

2.38
2.36
2.34
2.32
Current Ratio
2.3
2.28
2.26
2.24
2015 2016 2017
Interpretation:-Current ratio compares the current assets with its current liabilities.
It also measures whether the firms has enough resources to meet its short term
obligations of the company. In simple terms we can know the ability of the company to
meet its short term obligations. Here there is an increase in the ratio hence the company
has good ability to meets its obligations.
ii). QUICK RATIO

This ratio is also called quick or acid test ratio. It is calculated by comparing the quick
asset with current liabilities. Generally a quick ratio 1:1 is considered to represent a
satisfactory current financial condition.
Acid test ratio = Quick asset / current liabilities
Year Liquid assets Liquid liability Liquid ratio
2015 2,476,517,982 1,294,747,920 1.912741
2016 2,843,578,680 1,449,551,789 1.961695

2017 2,877,889,237 1,461,286,953 1.969421
Analysis:-In the year 2015 the liquid ratio was 1.9127 and during 2016 it was
1.9616.In the year 2017 there was an increase in liquid ratio to 1.9694 by having
liquid assets worth 2,877,889,237 and liquid liability worth 1,461,286,953.
5.2.2 Quick Ratio
1.98
1.97
1.96
1.95
1.94
1.93
Liquid Ratio
1.92
1.91
1.9
1.89
1.88
2015 2016 2017
Interpretation:-This ratio measures the company ability to pay its debt

obligations. It also indicates whether the company has enough current assets to meets
its company s obligations. So if the ratio is high it indicates that company has low risk
of default. As the liquid ratio is showing an increasing trend the company has low
risk.
Inventory turnover ratio

This ratio is also called as stock velocity ratio. The relationship between the costs
of Sales into average stock.
Inventory turnover ratio = cost of goods sold / average inventory

Inventory turnover
Year cost of goods sold Average Inventory
ratio
2015 136,758,744 480,818,258 0.284429
2016 137,327,139 542,527,313 0.253124
2017 93,310,585 686,428,124 0.135936
Analysis:-In the year 2015 the inventory turnover ratio is 0.2844 and in 2016 it is
0.2531.During 2017 the inventory turnover ratio is 0.1359 by having cost of goods
sold worth 93,310,585 and average inventory worth 686,428,124. The inventory ratio is
declining during the years.
5.3.3 Inventory Turnover Ratio
0.3
0.25
0.2
0.15
Inventory turnover ratio
0.1
0.05
0
2015 2016 2017
Interpretation: Inventory turnover ratio is also called as stock turnover ratio.

Through this ratio we can know the firms efficiency of handling the goods. A
Company is said to be more efficient when it as less inventory on hand to make the

sales. From the analysis we can infer that the company is more efficient in handling
goods over the years.
ii) Debtor’s turnover ratio:

Debtors turnover ratio= Total sales / Debtors
Average Accounts Receivables turnover

Year Credit sales
Receivables ratio
2015 7,706,255,909 55,918,438 137.812431
2016 8,503,229,589 109,196,592 77.870833
2017 9,029,807,105 87,489,194 103.210541
Analysis:-In the year 2015 the Receivable turnover ratio is 137.81 and during 2016
it is 77.87. During the year 2017 the Receivable turnover ratio is 103.21 by having
credit sales 333,835,044 and average accounts receivables 9,029,807,105. From the
analysis we can infer that net profit ratio is increasing from 2016 to 2017.
Figure: 5.4.4 Debtor Turn Over Ratio

160
140
120
100
80
Receivables turnover ratio
60
40
20
0
2015 2016 2017
Interpretation:
Above graph shown that the company has high ratio implies either that a company
operates on a cash basis or that its extension of credit and collection of accounts
receivable is efficient.
Net Profit Ratio:

Net profit is the relationship between net profit and net sales. It is calculated after excluding
non-operating expenses. It is used to measure the efficiency and overall profitability of the
organization.
Net Profit Ratio = (Net Profit / net Sales) x 100
Year Net profit Net sales Net profit ratio
2015 263,726,212 7,706,255,909 3.42223
2016 305,522,350 8,503,229,589 3.593015
2017 333,835,044 9,029,807,105 3.697034

Analysis:-In the year 2015 the net profit ratio is 3.4222 and during 2016 it is
3.5930.During the year 2017 the net profit ratio is 3.6970 by having net profit worth
333,835,044 and net sales worth 9,029,807,105. From the analysis we can infer that net
profit ratio is increasing over the period.
Net Profit Ratio
3.75
3.7
3.65
3.6
3.55
3.5
Net profit ratio
3.45
3.4
3.35
3.3
3.25
2015 2016 2017
Interpretation:-This ratio reveals the profit earned after all the cost of production,
administration and financings. If the ratio increases we can know the constant gross profit
margin indicates that the business has successful control on its operating expenses.
6. LEARNING EXPERIENCE
During my project work experience at ARVINDMILLS, I was fortunate enough to

have experienced first-hand and learned many different sides of what goes into a
project, the general process of how a project is initially planned, developed and
completed; as well as how much work and detail goes into every stage. Another
valuable lesson I have learned during these 4 weeks, were the many different types of
work an MBA Graduate performs, which in turn, have provided me with more insight
into the different types of roles and responsibilities that I could perform, as a HR &
Finance Manager. One main thing that I have learned through this internship is time
management skill as well as self motivation.
Overall, my work experience at ARVINDMILLS was positive. I was very happy with
the amounts of things that I have learned and experienced in the 4 weeks of doing a
Project with this company. I believe that Oxford College of Engineering should keep
this aspect of the MBA course as it does provide students with the experience needed
in order to find a job later on (even if the experience is over a short amount of time). I
ended up learning a lot more than I thought I would be able to in the time span. There
were many days that were busy where a tender deadline had to met or a client might
need something completed urgently, and these days were stressful to the point where
there were times I did have to stay back to get the project done. This in some ways
reminded me a lot of my late-night study sessions at university and how even in the
workplace during the project tenure.
BIBILIOGRAPHY

 www.arvind.com
 www.arvindmills.com
 Textile testing-
 Fabric structure and design manufacturing
 Wet processing book
 www.google.com
 Human resource management – by Subba Rao
 Marketing management – by Philip kotler
1.10 FINANCIAL STATEMENTS:

Profit and loss account of Arvind pvt Ltd for the year ended 31-03-
2015
For the year
Particulars ended 31-03-2015
I. Revenue from operation 7,706,255,909
II. other income 156,626,056
III. total revenue (I+II) 7,862,881,965
IV. Expenses:
Cost of material consume 136,758,744
Purchases of stock in trade 6,803,669,942
Changes in inventories of finished goods and stock in trade -142,552,023
Employee benefit expenses 187,992,117
Finance cost 7,509,833
Depreciations and amortization expenses 21,077,078
other expenses 398,784,020
Total expenses 7,413,239,711
Profit before exceptional and extraordinary items and tax (III-
V. IV) 449,642,254
VI. Extraordinary item 46,941,460
VII. Profit after extraordinary items and tax (V-VI) 402,700,794
VIII
. Prior period items 1,027,294
IX. Profit before tax (VII-VIII) 401,673,500
X. Tax expense:
Current tax 127,157,536
Deferred tax -2,096,192
Profit (Loss) for the period from continuing operations (IX-X)
XI. Discontinuing operations 272,419,772
XII. Profit/ (Loss) from discontinuing operations -8,574,592
XIII
. Tax expenses of discontinuing operations 118,968

XIV Profit/ (Loss) from discontinuing operations (after tax) (XII-

. XIII) -8,693,560
XV. Profit (Loss) for the period (XI+XIV) 263,726,212
XVI
. Earning per equity share:
(1) Basic 151
(2) Diluted 151
Profit and loss account of Arvind pvt ltd for the

year ended 31-03-2016
For the year

IV. Expenses:
V. IV) 500,997,769

VIII
X. Tax expense:
Deferred tax -61,629
XII. Profit/ (Loss) from discontinuing operations 5,508,699
XIII
. Tax expenses of discontinuing operations 1,787,298
. XIII) 3,721,401
XVI
(1) Basic 156
(2) Diluted 156
Profit and loss account of Arvind pvt ltd for the

year ended 31-03-2017
For the year

IV. Expenses:


V. IV) 529,379,787
VIII
X. Tax expense:
Deferred tax -15,721,090
XII. Profit/ (Loss) from discontinuing operations 1,943,247
XIII
. Tax expenses of discontinuing operations 672,519
. XIII) 1,270,728
XVI
(1) Basic 159
(2) Diluted 159
Balance sheet of Arvind pvt Ltd as at 31-03-2015

PARTICULARS as at 31-03-2015

I. EQUITY AND LIABILITIES

(1) Share holders funds
(a) Share capital 101,776,000
1,852,805,55 1,954,581,55
(b) Reserves and surplus 5 5
(2) Share application money pending allotment 125,581,789
(3) Non-current liabilities
(a) Other long term liabilities 661,143,485
(b) Long term provisions 60,029,144 721,172,629
(4) Current liabilities
(a) Trade payables 790,108,479
(b) other current liabilities 185,437,187
1,294,747,92
(c) Short term provisions 319,202,254 0
4,096,083,89
TOTAL 3
II. ASSETS
(1) Non-current assets
(a) fixed assets
(i) Tangible assets 94,518,078
(ii) Intangible assets 2,361,783
(iii) Capital work-in-progress 125,304,274
(b) Non-current investments 123,605,831
(c) Deferred tax assets(net) 74,600,039
(d) Long term loans and advances 707,840,705
1,138,747,65
(e) Other non-current assets 10,516,943 3
2. Current assets
(a) Inventories 480,818,258
(b) Trade receivables 55,918,438
(c) Cash and bank balance 1,601,883,55
8
(d) Short term loans and advances 716,529,067
2,957,336,24
(e) Other current assets 102,186,919 0
4,096,083,89
TOTAL 3

PARTICULARS As at 31-3-2016
2,154,149,35 2,255,925,35
1,047,502,96
(a) Trade payables 7
1,549,551,78
4,708,835,79
TOTAL 1
II. ASSETS
(a) fixed assets


1,322,729,79
(e) Other non-current assets _ 8
2. Current assets
1,808,498,37
(c) Cash and bank balance 3
(d) Short term loans and advances 825,972,738
3,386,105,99
4,708,835,79
TOTAL 1

PARTICULARS As at 31-3-2017
2,477,821,89 2,579,597,89
(a) Trade payables 1,014,986,89

0
1,461,286,95
4,917,039,12
TOTAL 9
II. ASSETS
(a) fixed assets
1,452,721,76
(e) Other non-current assets _ 8
2. Current assets
1,429,614,53
(c) Cash and bank balance 7
1,113,664,17
(d) Short term loans and advances 8
3,464,317,36
4,917,039,12
TOTAL 9


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INTERNSHIP ON ARVIND MILLS LTD.

1. INTRODUCTION ABOUT THE INTERNSHIP, INDUSTRY PROFILE

INTRODUCTION ABOUT INTERNSHIP:

A forerunner in international markets, the garment industry in India is widely

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A large and growing presence in the manufacture of ready-made garments - jeans,

2.1 COMPANY BACK GROUND:

History has been witness to the Arvind Group’s commitment to excellence,

A large and growing presence in the manufacture of ready-made garments - jeans,

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The three brothers, Kasturbhai, Narottambhai and Chimanbhai decided to put up a

2.2 NATURE OF BUSINESS:

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2.3 VISION, MISSION, QUALITYPOLICY

 To be one of the top there producer of the denim in the world.

 Optimizing usage of cotton, energy, chemicals &water.

 Adopting preventive strategies to reduce the generation of effluents, waste &

 Increasing the green cover.

 To ensure that high quality levels are achieved in terms of consistency an

 To undertake diversification programmes.

 To play an active role in the development of the society.

Arvind mills commit it to continuously improve environmental management

 Optimizing usage of cotton, energy, chemicals and water.

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 Adopting preventive strategies to generation of effluents,

 Maximizing the recycling of inevitable wastes.

 Encouraging suppliers and buyers to become

 Increasing the green cover.

 Training employees in environmental issues.

Effluent Treatment Facilities:

The Arvind international (divisional) has effluent recycling facility comprising

2.4 PRODUCT PROFILE:

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The Brands of Arvind are:

Introduced India’s movers and shakers to Arrow in 1993.They set up a hundred

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Ruff and Tuff:

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1985 First meter of denim was crunched out.

1990 Introduction of premium shirting’s division.

1993 Office set up in New York, London and Hong Kong.

1994 Arvind ventures into brands-Flying machine acquired.

Beginning of the era

1997 Commission of state of the art manufacturing unit at Santej.

2002 Arvind does a unique financial restructuring.

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2004 Relocation of Mauritius plant at the end of quota regime.

2006 Amalgamation of Arvind fashions limited to Arvind’s brand limited.

Arvind company has ISO 9000 and ISO14000 certification.

2.7 FUTURE GROWTH AND PROSPECTS:

 Get top management personally involved in sales, marketing, customer service

 Be open to new or unexpected customers and/or growth opportunities.

BNM Institute of Technology Page 12

The model is very much helpful in viewing the interrelationship of strategy.

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 Client-focused strategy to achive growth

 Focused on limited number of large organisation

 Commands premium margins

 Favours expansion into new devoloping & globally –connected geographies

 Develops deep industry knowledge

 Invest on brand building