BOSTON CONSULTING GROUP (BCG) MATRIX OF ARVIND MILLS LTD.

(Submission of Project in furtherance of project submission in the subject of Operational

Management II)

NATIONAL LAW UNIVERSITY, JODHPUR

SUBMITTED BY: SUBMITTED TO:

HARSH DHIRAJ SINGH Dr. ARCHI MATHUR

B.B.A LL.B (Hons.) (Associate Professor)

1503

SUMMER SEMESTER

(JULY 2019-NOVEMBER 2019)

 TABLE OF CONTENTS

ACKNOWLEDGEMENT ..................................................................................................... 4

OBJECTVES ......................................................................................................................... 5

RESEARCH METHODOLOGY........................................................................................... 5

CHAPTER 1: ......................................................................................................................... 6

BCG MATRIX AND ITS DIMENSIONS IN THE TEXTILE INDUSTRY ........................ 6

Market Growth ................................................................................................................... 6

Relative Market Share........................................................................................................ 7

Four Quadrants and their Strategies ................................................................................... 7

ARVIND MILLS LTD.: A BRIEF HISTORY OF BUSINESS FACTIONS ....................... 8

FABRIC & APPARELS ...................................................................................................... 10

 Denim ........................................................................................................................ 10

 Wovens ...................................................................................................................... 11

 Knits .......................................................................................................................... 12

LIST OF BRANDS AND RETAILS OF ARVIND MILLS ............................................... 12

CHAPTER 2: ....................................................................................................................... 13

ANALYSING THE FABRIC & APPAREL SEGMENT OF ARVIND MILLS................ 13

Performance of the Fabric & Apparel Segment ............................................................... 14

The Denim Segment: The Strength of Arvind Mills Ltd. ................................................ 16

New Innovations in Denim .............................................................................................. 19

Woven Segment of Arvind Mills Pvt. Ltd. ...................................................................... 20

Knits Segment .................................................................................................................. 23

Voiles Segment: Leader in Womenswear ........................................................................ 24

CHAPTER 3: ....................................................................................................................... 27

DATA TABULATION ........................................................................................................ 27

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CONCLUSION .................................................................................................................... 33

ANALYSING THE MATRIX POSITION ......................................................................... 33

SWOT Analysis ............................................................................................................... 33

Porter’s Five Forces Model .............................................................................................. 34

Gap Planning .................................................................................................................... 34

Denim: The Star Product ................................................................................................. 35

Wovens: The Cash Cows ................................................................................................. 36

Knits: The Question Marks .............................................................................................. 37

Voiles: The Cash Cows .................................................................................................... 38

Recommendations ............................................................................................................ 39

ANNEXURES ..................................................................................................................... 40

LIMITATIONS .................................................................................................................... 44

BIBLIOGRAPHY ................................................................................................................ 44

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 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to Dr. Archi Mathur (Associate
Professor) who gave me the golden opportunity to do this project on the topic (BCG Matrix of
Arvind Mills Ltd.), which also helped me in doing a lot of Research.

A special thank of mine goes to the primary stheirces who helped me out in completing the
project, where they all exchanged their own interesting ideas, thoughts and made this possible
to complete my project with all accurate information.

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 OBJECTVES

1. To understand the Different factions of Fabric & Apparel dealt with by Arvind Mills.
2. To analyse the Market Growth and the Market share of the different factions dealt with
by Arvind Mills.
3. To conclude as to where and which Faction should Arvind Mills focus on considering
a detailed study of their BCG Matrix, keeping in mind the profitability and cost benefit
analysis.

RESEARCH METHODOLOGY

1. The study is done only with the help of Primary as theyll as Secondary data.
2. Quantitative data has been used in the entire analysis.
3. Secondary data has been collected through the company’s theybsites, research portals,
news articles, etc.

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 CHAPTER 1:

BCG MATRIX AND ITS DIMENSIONS IN THE TEXTILE INDUSTRY

BCG matrix is a structure developed by the Boston Consulting Group to assess the company
brand portfolio's strategic position and potential. It classifies the portfolio of businesses into
ftheir classifications based on industry attractiveness (this Market growth rate) and competitive
position (relative market share). These two dimensions probably show the business portfolio's
profitability in terms of the money required to sustain that unit and the money it generates. The
overall aim of the study is to assist in understanding which brands the company should invest
in and which should be divested.

Market Growth

High market growth rate means higher earnings and sometimes profits but it also consumes
lots of cash, which is used as investment to stimulate further growth. Therefore, business units
that operate in rapid growth industries are cash users and are worth investing in only when they
are expected to grow or maintain market share in the future.

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 Relative Market Share

Relative market share is one of the measurements used to assess the business portfolio. Relative
Market Share can be defined as the methodology of comparing the brand’s market share against
the market share of the competitor’s brand in the market. It gives the company an insight into
the market share of the brand in the same operational market as its competitors. Higher market
share of corporations leads to greater money yields. This is because a company that generates
more advantages from greater economies of scale and curve experience, resulting in greater
revenues.

Four Quadrants and their Strategies

 Dogs: Compared to rivals, dogs have low market share and function in a slowly
increasing market. In particular, because they produce small or negative money yields,
they are not worth investing in. But this is not the reality at all times. Some dogs may
be lucrative for a long time, they may provide synergies for other brands or SBUs, or
they may simply act as a protection against moving rivals. Therefore, a closer
assessment of each brand or SBU is always essential to ensure that they are not worth
investing in or need to be divested.
 Strategic choices: Retrenchment, divestiture, liquidation

 Cash Cows: Cash cows are the most lucrative brands to supply as much money as
possible and should be "milked." To promote their further development, the money
obtained from "cows" should be invested in stars. According to growth-share matrix,
corporates should not invest into cash cows to induce growth but only to support them
so they can maintain their current market share. Again, the truth isn't always this. Cash
cows are generally big companies or SBUs that can innovate fresh products or
procedures that can become fresh stars. If cash cows they’re not supported, they would
not be able to make such innovations.
 Strategic choices: Product development, diversification, divestiture, retrenchment

 Stars: In high-growth sectors, Stars work and retain high market share. Stars are money
generators as they’ll work as money consumers. They are the main units the business

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 should invest its money in because it is anticipated that stars will become cash cows
and produce further cash flows. All stars, however, do not become cash flows. This is
particularly true in fast-changing sectors where new innovative products can quickly be
outstripped by new technological advances, so a star becomes a dog instead of
becoming a cash cow.
 Strategic choices: Vertical integration, horizontal integration, market penetration,
market development, product development

 Question Marks: Question marks are the brands that need consideration much more
closely. In quick increasing economies, they hold low market share, consuming big
amounts of money and incurring losses. It has the ability to gain market share and
become a star that later turns into a cash cow. Question marks are not always successful
and they struggle to gain market share even after big amounts of investment and
eventually become dogs. They therefore need very close consideration in deciding
whether or not they are worth investing in.
 Strategic choices: Market penetration, market development, product development,
divestiture

ARVIND MILLS LTD.: A BRIEF HISTORY OF BUSINESS FACTIONS

Arvind Limited is one of India's largest integrated textile and apparel companies with a strong
retail presence and a pioneer of denim in India. Arvind has an unmatched portfolio of owned
and licensed brands and retail formats. The company's own product brands include Flying
Machine Colt Ruggers Excalibur amongst others while its licensed product brands have big
global names like Arrow, Gant, Izod, Elle, Cherokee, and US Polo Assn. to name a few. It has
a joint venture in India with global major like Tommy Hilfiger and GAP. It also has retail
brands like Megamart, The Arvind Store Club America Next and Debenhams. The company's
principal business consists of manufacturing and marketing of Denim Fabric Shirting Fabric
Shirts Knitted Fabric and Garments. The company has production facilities at Ahmedabad
Mehsana Gandhinagar in Gujarat Pune in Maharashtra and Bangalore in Karnataka. Arvind

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Ltd was incorporated in the year 1931 as Arvind Mills Ltd by three brothers Kasturbhai
Narottambhai and Chimanbhai. In the year 1934 they established themselves amongst the
foremost textile units in the country. They are first company to bring globally accepted fabrics
such as Denim yarn dyed shirting fabrics & wrinkle free gabardines to India in the year 1986.

In the year 1987 they started retail outlets for 'Arrow' brand and became the first company to
bring international shirt brand 'Arrow' to India. The company joint venture includes their
technical and marketing alliance with F M Hammerie Von-Ogensver Waltungs Austria the US
based Alamac Knit Fabrics & Spinners and Webexi Dict Turt Switzerland. Arvind Mills in
1985 has diversified into electronics by setting up a plant to manufacture electronic telephone
exchanges (EPABX).

In March 2005 the company commenced their operations of producing Jeans Pant in Bangalore
with the installed capacity of 4 million Pcs per annum. During the year 2005-06 new Denim
collection was launched which was aimed at the Super Premium brands of the USA Europe
Japan & Korea. The response to this collection was good and they have opened new venues for
the Denim division. The company demerged and transferred the Garments Business Division
of their 100% subsidiary company Arvind Brands Ltd and amalgamated Arvind Fashions Ltd
a 100% subsidiary of Arvind Brands Ltd with themselves with effect from April 1 2006. Also
The Company has a joint venture company namely Arvind Murjani Brand Pvt Ltd through
which they hold license to sell Tommy Hilfiger brand apparel in India. The operations of
Arvind Brands Limited and their subsidiaries were merged with the Company with effect from
April 1 2006. The wholesale branded apparel business of Arvind Fashions Ltd has been sold
to VF Arvind Brands Pvt Ltd with effect from August 31 2006. In March 2008 the company
signed an exclusive license agreement with The Philips-Van Heusen Corporation for designing
distribution and retailing of IZOD brand apparels in India. From May 2008 the company's name
was changed from Arvind Mills Ltd to Arvind Ltd so as to accurately reflect the multi-faceted
nature of the organization. In 2010 The Arvind Store was set up to house the best brands of
Arvind under one roof. The store offers the entire range of the company's fabrics and apparel.

The firm produces textiles made from cotton. Manufactured products are dhoties, sarees, mulls,
dorias, crepes, shirts, coatings, cambrics of printed lawns and voiles, Gaberdine twills, etc. The
activities of the Company theyre split into 3 units viz.,

 Division of Textile
 Division of Telecom

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  Division of Garments.

In the present study they are concerned with only the Textile and the Garment division. Jeans
theyre sold by the Garment Division under the brand name ‘Flying Machine’. The division of
Garment suggested to market its jeans in North India under the brand name ‘Newport’. Due to
an unprecedented increase in cotton costs, the efficiency of the textile division was
considerably impacted in 1995. The garment division was introduced under the brand ‘Ruf &
Tuf’ prepared to stitch jeans pack. It also introduced casualtheyar from ‘Rugger’ and
Gaberdine jeans from ‘New Port’. The firm has two products in Arrow (premium segment
shirt brand) and Lee (premium segment jeans brand) wholly-owned subsidiaries. The
company's reaction to the Arrow and Lee brands has been highly enctheiraging, while the
unorganized industry threat continues to dog the famous segment products ‘Newport’ and ‘Ruf
& Tuf’.

In 2014, Arvind announces that it is linked to The Children's Place, America's biggest
specialty retailer for children. It is a member of the Indian Joint Venture with PVH Corp. for
Calvin Klein Business Operations in India. Arvind Ltd ventured into e-commerce with the
Creyate brand of custom clothing.

FABRIC & APPARELS

 Denim

Arvind Denim Lab is a unique facility of its kind in Asia, which enables brand design teams to
leverage all of their infrastructure and capabilities under one roof, to co-create their signature
products and finishes. Further, their partnership with Denim City, Amsterdam gives their
customers access to the cutting edge developments in the world of Denim. Innovation and
Sustainability are a way of life at Arvind Denim, and a large number of global rewards received
each year are testimony of their commitment to it. They pride themselves on technologies such
as Neo, wash techniques that reduce water consumption, and sustainable fibres that make us
one of the most responsible denim producers in the world. Arvind Denim’s strength is reflected
in their propriety innovative products such as Azurite, and brands like BOOMERANG that
enjoy consumer level co-branding. They collaborate with village industries on truly hand spun

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and handloom woven Denim products that help us preserve their heritage crafts and support
thousands of livelihoods. Each year Arvind Denim produces over 100 million meters of fabrics
and 6 million pairs of jeans.

 Brands: Flying Machine, US Polo Assn., Calvin Klein, Tommy Hilfiger.

 Wovens

Arvind Wovens is built upon the foundation of Heritage, Innovation, and Sustainability. They
have been leading the evolution of textiles in India since 1931. “From idea to product” is the
ethos that is woven into everything they do, and has made them the world’s leading multi-fibre
fashion solutions provider. They produce about 130 million meters of woven fabric annually.
Today, their expertise lies in handling versatility, complexity, a vast spectrum of coltheirs,
excellence in craftsmanship, cutting edge technology, innovative concepts and the best finishes
in the world. They also have a separate mini-mill that builds shorter yardages to give customers
a choice.

 Shirts: Arvind is a reference point in Asia for finest bespoke formal, urban, smart &
denim shirts. Their Collection ranges from 2/170s to coarse counts, multi-fibre blends
using fibres/yarns from global partners like SUPIMA, Invista & Lenzing; and
performance finishes. Their state of the art facilities offer myriad of fashion possibilities
& solutions driven by Arvind Innovation Lab.
 Trousers & Jackets: From trademark performance concepts such as Commuter 5-
Pocket and Shrink-to-fit of Levi’s to Banana Republic’s Rapid movement Chino that’s
about technological uniqueness, handling complex yarns and imparting varied
functionalities and Monogram Formal Suits, they are creating seasonal fashion to
timeless classics in Jeanstheirar, sportstheirar and Formal category for their brand
partners. Arvind Innovation lab drives a constant flow of inspiration and ideas that
shape global Khakhi culture.
 Suits: They create international bespoke fashion offerings through globally stitched
fabrics from the best suppliers. These are manufactured in their state-of-the-art
factories. They also have an exclusively crafted range for their consumers in the form
of TRESCA fabrics range. The top of the line offering is made with the World’s finest
SUPIMA cotton and Egyptian Giza cotton. Primante - Premium worsted suiting brand

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 a combination of Australian Merino wool and Italian design, stitched from Milan, Italy,
and conceptualized by Arvind for the urbane and affluent Indian customers.

 Knits

Their division Knits redefines clothing convenience and efficiency. They are one of India's
biggest knit fabric producers with a capability of 12,000 T and an annual garment capability of
approximately 20mn parts, increasing exponentially. Their key knowledge for males, females
and children is ready-to-wear, ethnic wear and essential in fabric and clothing.

Their in-house, dedicated design team enables close-to-season collections and co-creation for
their brand partners who are able to leverage their core specialities in multi-fibre blends, linen
blends, siro-cellulosics and yarn-dyeing. The newly launched Arvind Innovation Lab offers
new, exciting, and trendsetting lifestyle fabric and garment solutions. Their vertically
integrated set-up sets us up to provide un-matched product possibilities and quality, with speed-
to-market solutions. Their offer creative and high-end products in cotton, linen, viscose, modal,
tencel, polyester and nylon blends with functional finishes, and a wide range of prints. Holistic
lifecycle approach to sustainability. Their offer a variety of sustainable yarns - BCI, Organic,
PCW and Rope-dyed yarns - processed sustainably.

LIST OF BRANDS AND RETAILS OF ARVIND MILLS

1. Arrow
2. US Polo Assn.
3. Flying Machine
4. The Children’s Palace
5. Calvin Klein
6. Tommy Hilfiger
7. Hanes
8. Gant
9. Ed Hardy
10. IZOD

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 11. Aēropostale
12. Nautica
13. True Blue
14. Unlimited

The above-mentioned brands are covered under the broader head of fabric and apparels
mentioned in the earlier section. The brands overlap in terms of their fabrics and Apparels,
however they significantly differ in terms of their Target Market Segment and Competitors.
This calls for an overview of the operation of a BCG Matrix in the Textile and Garments
Industry.

CHAPTER 2:
ANALYSING THE FABRIC & APPAREL SEGMENT OF ARVIND MILLS

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 Performance of the Fabric & Apparel Segment

30% of total revenues of Arvind in FY15 came from the Brand and Retail segment, of which
brands contributed around 70% while the remaining 30% came from retail. Arvind’s brand
portfolio comprises of 31 brands, of which 11 are company owned, 12 are licensed, two are
joint ventures and six are exclusive retail brands. Of these 31 brands, its top four brands (power
brands) like Arrow, Tommy Hilfiger, US Polo and Flying Machine contribute around 80% of
overall brand revenue.

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Overall the company is showing healthy financial growth but is still short of achieving its own
previous highs of FY 12.

Arvind Ltd knows it is the brand and retail business, accounting for about a third of
consolidated revenue in fiscal year 2016. That will drive growth in the days to come. The
company’s revenue growth guidance from the brand and retail segment for FY17 stands at
24%. The textile business, forming around three-fifths of the total revenue in FY16, is expected
to grow at a slower pace of 8-9%. The growth trends seen over the year and quarter gone by
are expected to carry on into the new fiscal year.

Textile revenue increased 4% from a year earlier during the March quarter. Analysts from
Emkay Global Financial Services Ltd note that a change in product mix led to an improvement
in denim realizations (+5%); however, bottlenecks in production resulted in 4% decline in
volume, resulting in a muted 1% growth in denim revenue. But garments performed well,
registering 27% growth. On the other hand, brand and retail revenue rose by a remarkable 31%.
According to the firm, revenue growth was 44% in brands/retail formats, while revenue from
its Mega Mart Retail format declined 4%. Arvind’s power brand portfolio (Tommy Hilfiger,
Arrow, US Polo Association and Flying Machine) performed well. The upshot: overall revenue
increased 14% (best in the past four quarters at least) to ₹ 2,320 crore.

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 The Denim Segment: The Strength of Arvind Mills Ltd.

Blue jeans have been synonymous with Arvind Ltd for more than three decades. After all, the
88-year-old Ahmedabad-based textile company was the first to manufacture the indigo-dyed
blue cloth in the country. Sanjay Lalbhai, 62, now chairman of Arvind, recalls how the first lot
of indigo-dyed denim, made by Arvind sometime between late 1985 and 1986, was technically
not denim at all. A thick white cotton twill was printed indigo-blue using a saree-printing
machine and then tested to see if it washed like denim. Lalbhai explains that for a fabric to be
considered authentic blue denim, the warp or the longitudinal yarn in the fabric has to be dyed
with indigo before the weaving. The transverse thread, or the weft, must be white. The
afterwash look of the fabric is the key.

By 1986, the Arvind top brass had been mulling over denim options for two years. That journey
had started a few years earlier when former adman-turned-entrepreneur Rajiv Badlani set up
the jeans brand in 1980. Badlani, who had married into the Lalbhai family, was importing
denim to make Flying Machine as suitable material was not available in India. He wanted
Arvind to make denim in India. Arvind, on its part, was looking for a product to take on the
competition in textiles, which was becoming more and more commoditised.

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The company, then called Arvind Mills acquired Flying Machine in 1984. But the equipment
needed to make authentic denim required big investments and no one was sure it would work.
Therefore, the first India-made denim came out of a saree-printing machine, and went on to
become Flying Machine jeans. The brand success led Arvind to invest in the technology
required to make denim in 1986 and set up India first denim manufacturing plant, at Naroda
Road in Ahmedabad. By March 1987, Arvind Mills was producing authentic denim. Since
then, the Naroda factory has seen many innovations in fabric weaving and dyeing for instance,
the use of a rota-spray machine for space dyeing hand woven ikkat. However, Arvind most
advanced weaving unit today is in Gandhinagar Kalol, about 23 km from Naroda.

Set up in 2011 with German company PD Composites, the joint venture weaves glass fibre into
technical textiles. Glass fibre textiles are used to make factory-wear, auto-interiors and
windmill blades, as well as structural pieces that can be used to make ladders or even bridges.
The two units look vastly different. While the one in Kalol is clean and modern, the one in
Naroda is a typical old textile mill. White, the colour of glass fibre, dominates the new factory,
whereas indigo dye dominates the fabric and walls at the Naroda unit.

If denim was Arvind big bet in the 1980s, technical textiles are one of its bigger bets now,
along with other businesses such as water and wastewater treatment as well as garment
production for international players. These could be the future of Arvind Ltd, which completed
a three-way division of the company in November 2018.

The branded retail play (which includes Arrow, GAP, Tommy Hilfiger and Flying Machine) is
Arvind Fashions Ltd and the much smaller engineering arm has been hived off as Anup
Engineering. More than 60% of the value of the original company has now moved to the
branded retail arm. Arvind Ltd now wants to use the textile business to fund newer businesses.
But the key trick will be to ensure there is a balance between older businesses that provide a
higher return on capital and the newer ones that need investments to ensure minority
shareholders get their due.

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18
 New Innovations in Denim

Stretch denim is one of the most popular types worldwide. Over a period of time, the denim
concept has undergone a lot of changes. A century ago denim was primarily considered a
workwear. Today it plays an import role in the multi-billion dollar fashion industry. With its
special in design, innovation and sustainability, Arvind has many firsts in denim, to its credit,
enabling brands to bring a range of products for their discerning customers. This is happening
yet again with the denim expert reloading the fashion market of India with some energizing
concepts with its festive 2016 collection – RELOAD.

Arvind showcased its Stretch Denim Powered by LYCRA in an exclusive event held in
Mumbai for Festive 2016 for the Indian market. The Festive 2016 denim collection represented
the latest denim innovations from Arvind such as Mutant Denim, Denim Structures, Neo
Denim, Neo Cord, Neo Bubble and Boomerang Denim. “Arvind Denim stands for innovation.
We don’t restrict ourselves to use of LYCRA, but cover other fibres like Coolmax, Thermolite
and Cordura from the Invista portfolio. Whenever Invista launches a new product, Arvind has
exclusive access to it for use in our product range,” said Mr. Aamir Akhtar, CEO, Lifestyle
Fabrics – Denim, Arvind Ltd.

All the concepts have stretches powered by LYCRA fibre. The denim products covered by
these concepts are styled thematically and washed in the best of laundries. They are also
displayed category-wise in an exclusive runway show choreographed by Prasad Bidapa.
Arvind’s tie-up with Invista, six years ago has given the denim manufacturer the leverage to
experiment its way into the stretch denim segment. Today, Arvind has one of the largest denim
capacities in the world and is a key player when it comes to innovative concepts in denim space.
Currently, Arvind Mills has a capacity of 140 million meters per annum.

Stretch denims that have evolved globally are now growing popular all over. Moving from
simple polyester-based stretches to complex stretched in polyester and cotton. The stretch
consumption in India is more than 90 per cent. Men’s range of stretch denim varies between 8-
30 per cent of LYCRA content but women’s range can go up to 80-90 per cent depending upon
the requirement. Recovery and growth are also an important factor as far as stretch denims are
concerned. Concepts like moisture management, insulation and tougher fabrics are all part of
this year’s collection. New structures, knit-like denims, high-density denim and deep dark

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indigo range are some of the concepts from the house of Arvind that are displayed at this year’s
event.

Woven Segment of Arvind Mills Pvt. Ltd.

Ten years ago, Arvind Clothing Ltd., a subsidiary of Arvind Brands Ltd., a member of the
Ahmedabad based Lalbhai Group, signed up with the 150-year old Arrow Company, a division
of Cutlet Peabody & Co. Inc., US, for licensed manufacture of Arrow shirts in India. What this
brought to India was not just another premium dress shirt brand but new manufacturing
philosophy to its garment industry which combined high productivity, stringent in-line quality
control, and a conducive factory ambience.

Arrow’s first plant, with a 55,000 sq. ft. area and capacity to make 3,000 to 4,000 shirts a day,
was established at Bangalore in 1993 with an investment of Rs. 18 crore. The conditions inside
– with good lighting on the workbenches, high ceilings, ample elbow room for each worker,
and plenty of ventilation, were a decided contrast to the poky, crowded, and confined
sweatshops characterizing the usual Indian apparel factory in those days. It employed a
computer system for translating the designed shirt’s dimensions to automatically mark the
master pattern for initial cutting of the fabric layers. This was installed, not to save labour but
to ensure cutting accuracy and low wastage of cloth.

The over two-dozen quality checkpoints during the conversion of fabric to finished shirt was
unique to the industry. It is among the very few plants in the world that makes shirts with 2 ply
140s and 3 ply 100s cotton fabrics using 16 to 18 stitches per inch. In March 2003, the
Bangalore plant could produce stain-repellent shirts based on nanotechnology. The reputation
of this plant has spread far and wide and now it is loaded mostly with export orders from
renowed global brands such as GAR, Next, Espiri, and the like. Recently the plant was
identified by Tommy Hilfiger to make its brand of shirts for the Indian market. As a result,
Arvind Brands has had to take over four other factories in Bangalore on wet lease to make the
Arrow brand of garments for the domestic market.

In fact, the demand pressure from global brands which want to out outscore from Arvind
Brands, is so great that the company has had to set up another large for export jobs on the
outskirts of Bangalore. The new unit of 75,000 sq. ft. has cost Rs. 16 crore and can turn out
8,000 to 9,000 shirts per day. The technical collaborates are the renowned C&F Italia of Italy.

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Among the cutting edge technologies deployed here are a Gerber make CNC fabric cutting
machine, automatic collar and cuff stitching machines, pneumatic holding for tasks like
shoulder joining, threat trimming and bottom hemming, a special machine to attach and edge
stitch the back yoke, foam finishers which use air and steam to remove creases in the finished
garment, and many others. The stitching machines in this plant can deliver up to 25 stitches per
inch. A continuous monitoring of the production process in the entire factory is done through
a computerized apparel production management system, which is hooked to every machine.
Because of the use of such technology, this plant will need only 800 persons for a capacity
which is three that of the first plant which employs 580 persons.

Exports of garments made for global brands fetched Arvind Brands over Rs. 60 crore in 2002,
and this can double in the next few years, when the new factory goes on full stream. In fact,
with the lifting of the country-wise quota regime in 2005, there will be a surge in demand for
high quality garments from India and Arvind is already considering setting up two more such
high tech export-oriented factories.

It is not just in the area of manufacture but also retailing that the arrow brand brought a wind
of change on the Indian scene. Prior to its coming, the usual Indian shirt shop used to be a
clutter of racks with little by way of display. What Arvind Brands did was to set up exclusive
showrooms for Arrow shirts in which the functional was combined with the aesthetic. Stuffed
racks and clutter were eschewed. The products were displayed in such a manner that the
customer could spot their qualities from a distance. Of course, today this has become standard
practice with many other brands in the country, but Arrow showed the way. Arrow today has
the largest network of 64 exclusive outlets across India. It is also present in 30 retail chains. It
branched into multi-brand outlets in 2001, and is present in over 200 select outlets.

From just formal dress shirts in the beginning, the product range of Arvind Brands has
expanded in the last ten years to include casual shirts, T-shirts, and trousers. In the pipeline are
light jackets and jeans engineered for the middle age paunch. Arrow also tied up with the
renowned Italian designer, Renato Grande, who has worked with names like Versace and
Marlboro, to design its Spring / Summer Collection 2003. The company has also announced
its intention to license the Arrow brand for other lifestyle accessories like footwear, watches,
undergarments, fragrances, and leather goods. According to Darshan Mehta, President, Arvind
Brands Ltd., the current turnover at retail price of the Arrow brand in India is about Rs. 85

21
crore. He expects the turnover to cross Rs. 100 crore in the next few years, of which about 15
per cent will be from the licensed non-clothing products.

In 2005, Arvind Brands launched a major retail initiative for all its brands. Arvind Brands
licensed brands (Arrow, Lee and Wrangler) had grown at a healthy 35 per cent rate in 2004
and the company planned to sustain the growth by increasing their retail presence. Arvind
Brands also widened the geographical presence of its home-grown brands, such as Newport
and Ruf Tuf, targeting small towns across India. The company planned to increase the number
of outlets where its domestic brands would be available, and draw in new customers for ready-
made’s. To improve its presence in the high – end market, the firm started negotiating with an
international brand and is likely to launch the brand.

The company has plans to expand its retail presence of Newport Jeans, from 1200 outlets across
480 towns to 3000 outlets covering 800 towns. For a company ranked as one of the world’s
largest manufacturers of denim cloth and owners of world famous brands, the future looks
bright certain for Arvind Brands Ltd.

22
 Knits Segment

Knits Business of ARVIND LIMITED has transcended from being only a Fabric Supplier to
Garment Manufacturer. In last couple of years, we have grown aggressively by focusing on
Product Innovation, Quality and an undying attention to the Customer needs. Knits Fabric
Division is considered as one of the Ultra-Modern Integrated Facilities in India and has
capability to produce 600 tons Fabric per month catering to Indian market. Fabric is also being
exported to different countries. Consistent quality, Good lead-time, and Competitive Price have
been its strength.

It is known for its Multi-skilled work force coupled with Latest Machinery, Total in-house
Quality Control Procedures and Latest Innovations and Developments etc. International Brands
and Testing Agencies have also accredited it. Its clientele profile shows its reputation in this
region. With an endeavor to provide “One stop solution” to its customers, Garment Division
(GD) has come a long way since its inception in 1999-2000. Garment Division works on
conversion module by capitalizing on its core strength – Fabric that is provided by
internationally acknowledged ARVIND LIMITED. Garments are manufactured at four
strategic locations - Ahmedabad, Tirupur, Indore and Vapi – where they are customized
according to the customer’s preference. Our QAs are stationed at each job centre to ensure
good quality of the garment and timely delivery. Garment Division has worked with various

23
national and international brands in its long tenure of 12 years. Existing customers include
Izod, Arrow, Louis Philippe, Allen Solly, Parx, Blackberry’s, Rig Anthony, Splash, Pantaloons
, etc. A team of dedicated professionals ensures smooth execution from order inquiry to order
delivery.

Their product range varies from core products to value added premium garments. A detailed
product category includes Polo and Tees – Graphic, Performance, Cut & Sew, Casuals, Sports,
Cut & Sew Jackets, Fashion Garments, and Printed & Solid Bottom Wear. Design Studio and
Product Development team functions as an integral part of the Garment Division. In-house
design cell works on trend and colour stories for seasonal presentation a year in advance, which
makes it unique of its kind in India as far as knits segment, is concerned. Development cell
constantly works on new yarn, Knitting Technology and surface finishes. They contribute
significantly in producing bespoke styling solution based on latest fashion styles. Their effort
keeps us on the realm of recent trend prevalent in world market.

Voiles Segment: Leader in Womenswear

Ankur Textiles, Lifestyle Division of Arvind Limited is a leader in the Voiles Segment for
womenswear. The company reaches out to more than 10,000 retail outlets throughout India.
For more than five decades, Ankur has been designing high-quality voiles ranging from 100
per cent cotton to all fancy blends that are available throughout India and exported to
Switzerland, Middle East, China, Thailand and Africa. A heritage brand of Arvind, Ankur
develops high-quality fabrics for womenswear and menswear. The company recently expanded
into multi-fibre fabrics segment for womenswear.

Interview of Brijesh Bhati, CEO, Ankur Textiles (Secondary Source: Indian Textile Journal

 Can you give us more information and details on the company’s recent foray into
multi-fibre fabrics? What are the USPs of these new-age fabrics?

We have forayed into the multi-fibre fabrics space with a wide range of modal, viscose, cotton
Lycra blended fabrics as an alternative to traditional cotton for the new-age Indian woman.

24
These fabrics are available under brands like Zoya, Glam and Glory, Blossom, Zoya Silk, and
Lilac, and can be tailor-made into western and ethnic womenswear such as dresses, blouses,
kurtis, and tunics.

Our expertise in textile fabrics, combined with the use of technology, has enabled us to develop
fabrics that offer both style and comfort. We are a one-stop solution provider for all kinds of
fabric requirements. We have a strong network of dealers across the country, which enables us
to reach customers faster with the relevant solution. Ankur Textiles is known for having the
shortest lead time and for offering a wide array of products in each category.

 What is the capex pumped into new activities in the last couple of years? Which are
the segments it has focused on?

We are continuously keeping pace with technological advancements especially in the

processing sector to enable us to provide the best to our customers. We are continuously
investing in processing by increasing the capacities best suited for the product segment. We
are now also investing into developing printing capabilities both in rotary and digital
technologies.

 What are the future plans for expansion and diversification? Give us some details on
the R&D and innovation facilities.

Our current manufacturing capacity is 50 MMPA. We are now broadening our product basket
by diversifying into high-end prints for the domestic as well as the international market. In the
next three years, our offering will be close to 60 million metres per annum.

We also plan to have a comprehensive offering comprising of smart fabrics with distinctive
functional features like moisture management; soil-resistant, oil-repellent, and thermal
properties. We might also experiment with fibres such as nylon and hollow yarn.

 Please tell us about Ankur’s export achievements and plans for the future?

We export our range of textiles to China, the Middle East, Thailand and Switzerland. And, with
the addition of the distinctive printed fabric to our portfolio, we aim to win new business
opportunities in our domestic and overseas markets.

 Domestic textile and garment industry have been neglected when it comes to supply
chain and how do you think your company has been serving the domestic
 customers?

25
We have a network of around 150 dealers across India. Our distributors cover more than
10,000 retailers, and we plan to double this number in next three to four years. We have also
invested a good deal of time and energy into creating separate secondary sales stores for
promoting the ‘Ankur’ brand, especially in tier-2 and tier-3 cities.

 What is today’s trend in menswear and womenswear? How far is India from this
emerging trend? Will we catch up?

Womenswear fabric is a highly disruptive fast-fashion market in India and abroad. Seasonal
trends in India are led by festive and wedding seasons, and vary widely, depending on the local
tastes and preferences. The womenswear fabric category in India is recording double-digit
growth every year. In the last two to three years, fashion tastes have shown an inclination
towards jacquards and prints.

Our brands, Tiptop and Chakori, enjoy very strong recall, especially in the southern parts of
India. We are investing significantly to make them equally popular in the rest of the country.
We want to have top-of-the-mind recall amongst women, whether it is for western fashion or
Indian wear.

 Production of high-quality fabrics, successful value chain operation, competing for

a two-digit share in global textile trade -- Where are we lacking & what is your
formula for success in these areas?

We are already recognized and acclaimed for meeting high quality standards, low - cost
operation module and very high level of customer service, however the main focus would
remain toward product development and aggressive sales and marketing across India to
translate our vision of top-of-the-mind women’s wear fabric brand into reality. Market
penetration, strong secondary sales support and close proximity to the consumer shall be the
major enablers.

26
 CHAPTER 3:
DATA TABULATION

I. PROFITABILITY ANALYSIS OF THE TEXTILE BUSINESS

II. PORTFOLIO SHAPE OF ARVIND MILLS PVT. LTD.

27
III. PERFORMANCE OF THE GARMENT SECTOR IN DIFFERENT FINANCIAL
YEARS

IV. COMPETITOR ANALYSIS

28
By looking at competitor analysis we can say that Arvind Limited has managed to earn highest
net profit during the year 2014-2015. Three companies except Siyaram Silk Mills were founded
in early 90s (1879 for Bombay Dyeing), out of these Arvind Limited has been a consistent
performer. Total assets of Arvind Limited are also highest this shows that, company has
undertaken a business strategy which changed over the years and helped company to grow at a
higher rate.

Competitor Profiles

 Raymond Limited

Raymond Limited comprises of three divisions namely Textiles, Engineering and Aviation.
Considering the textile sector, Raymond Limited is largest non-segregated manufacturer of
worsted fabric, in the world.

 Bombay Dyeing

Bombay Dyeing is the ’front runner’ company of Wadia Group. This company is mainly into
the business of textiles. Bombay Dyeing not only manufactures clothes for people but also
helps customers in furnishing their homes.

 Siyaram Silk Mills

Siyaram Silk Mills is the subsidiary of Siyaram Poddar group. Siyaram Silk Mills is also known
as Siyaram’s or SSM.Today, Siyaram’s is the largest manufacturer of blended fabrics in India.
Siyaram’s has entered the Readymade Garment sector in beginning of the year 2014.

29
 V. FACTORS INFLUENCING ARVIND MILLS PVT. LTD.

VI. FACTORS INFLUENCING FUTURE DECISIONS

VII. INCREASING TREND IN FAVOUR OF DENIM WEAR

30
VIII. BRANDED MARKET PORTFOLIO OF ARVIND MILLS PVT. LTD.

IX. MASS PREMIUM BRANDS GROWTH

31
X. SHIFT IN THE MARKET APPROACH

32
 CONCLUSION
ANALYSING THE MATRIX POSITION

The preceding sections in this study, which consisted of various theoretical aspects, statistics
and an interview suggests a lot of concluding remarks about the BCG Matrix formation of
Arvind Mills Product Portfolio. In the present section, certain concluding remarks will be made
regarding the placing of different products in different matrix boxes according to their present
and future growth potential. However, before stating the remarks, let us revisit the SWOT
Analysis of the Company along with some other models of Management that can help in
substantiating the remarks.

SWOT Analysis

These factors need to be kept in mind while deciding the overall growth pattern and potential
among the four product portfolios. Let us examine different models of planning and strategy
formulation which will drive the analysis further.

33
 Porter’s Five Forces Model

Porter’s Five Forces is an older strategy execution framework (created by Michael Porter in
1979) built around the forces that impact the profitability of an industry or a market. The five
forces it examines are:

1. The threat of entry. Could other companies enter the marketplace easily, or are there
numerous entry barriers they would have to overcome?
2. The threat of substitute products or services. Can buyers easily replace your product
with another?
3. The bargaining power of customers. Could individual buyers put pressure on your
organization to, say, lower costs?
4. The bargaining power of suppliers. Could large retailers put pressure on your
organization to drive down the cost?
5. The competitive rivalry among existing firms. Are your current competitors poised
for major growth? If one launches a new product or files a new patent—could that
impact your company?

Gap Planning

Gap planning is also referred to as a “Need-Gap Analysis,” “Need Assessment,” or “the

Strategic-Planning Gap.” It is used to compare where an organization is now, where it wants
to be, and how to bridge the gap between. It is primarily used to identify specific internal
deficiencies.

Or if the company has achieved, what it desires, it needs to upgrade its objectives. In all such
cases, gap analysis is used. Gap analysis helps the company in determining the steps that need
to be taken to reach the desired objective from the current state. The process of gap analysis is
as follows.

34
 Denim: The Star Product

The Indian fashion and lifestyle market is expected to touch Rs3,94,000 crore over the next
five years, according to a 2016 survey by consulting firm A.T. Kearney. Home-grown denim
brand Flying Machine has aggressive revenue targets for its next phase of expansion, which it
believes are easily achievable.

The brand, owned by textile maker Arvind Lifestyle Brands Ltd, is expecting to clock Rs 1,
000 crore in revenue by 2022, up from the current Rs375 crore. The company currently
retails through 175 exclusive brand outlets, 242 large format stores and more than
500 multi-brand outlets.

Arvind was First to Introduce Denim, First to build largest and fully integrated YD facility
under one roof and come up with the First Denim brand in India: Flying Machine. The textile
major wants to increase its revenues from apparel and fabric retailing to 40 per cent of total in
FY 13, from a third at present. The theme of textile and apparel major Arvind latest corporate
presentation is ‘Transformation’.

For the 80 year-old textile and apparel major the transformation was changing its business
model from a pure textile play (B2B) to a retail-led strategy (B2C) at a time when the retail
industry is growing faster than the textile segment.

35
Consider this: While Arvind's textile business, mainly led by denim, grew by 20 per cent, retail
and brands business grew by 47 per cent in FY 2011. Arvind saw a third of its Rs 4,000 crore
revenues coming from apparel and fabric retail in FY 2011 and the company expects this to go
up to 41 per cent by FY 2013. Its peer Raymond saw 26 per cent of its revenues coming from
retailing in FY 2011 but had to close brands such as Manzoni, Be and Zapp and ended a joint
venture with GAS in the past as they were not working out. Wadia group-promoted Bombay
Dyeing, which is making losses for the last couple of quarters, is also planning to change its
image from a pure manufacturing company to a retail-focused company to boost its revenues.
From the current 350 points of sale, it wants to add 365 new ones in the coming quarters.

The stock market has rewarded Arvind performance. While the Arvind stock has risen around
20 per cent since the beginning of the year, Bombay Dyeing and Alok Industries stocks have
fallen over 25 per cent each. Raymond’s has risen in single digits

Going ahead, retail will be bigger as there is an opportunity for growth, but, textiles do have a
certain volume growth. Apparel market is growing at 30 per cent and organised retail is
growing at the expense of unorganised retail. Even if there is a slowdown there will be a fall
of only 5%.

Wovens: The Cash Cows

Arvind Limited is planning to scale up its textiles business to Rs 10,000 crore by 2023, from
Rs 6,000 crore now. The key drivers to this growth will be verticalization, more garmenting,
ramping up advanced materials division which is into specialised textiles, and adopting newer
technologies that will help scaling up operations and build on the Arvind brand.

Arvind Ltd and Japan’s OG Corporation on Saturday inaugurated manufacturing facilities of

their joint venture—Arvind OG Nonwovens Pvt. Ltd—near Ahmedabad. The joint venture will
manufacture high-quality non-woven fabrics using needle-punch technology for bag-house
filtration, artificial leather and a variety of other applications.

Arvind Ltd.’s future is built on two parallel growth drivers – domestic consumption in apparel
& branded retail and large global opportunities in textiles & clothing world trade. The company
is developing a large-scale dormitories-based garmenting model in India. In the wovens
business, it is planning investments in processing and finishing for further strengthening its

36
manufacturing infrastructure. It has also set up a plant for producing suits through the joint
venture company, Arvind Goodhill Suit Manufacturing Private Ltd. The company is planning
to invest around Rs. 125 crores for the plant which will have a capacity to produce nine million
pieces of garments. Expected to be commissioned in the next 12 months, the apparel
manufacturing plant will garner a revenue of Rs. 600 crores. The manufacturer plans to expand
the garment capacity by another 6-7 million in a year-and-a-half with a current capacity of 10
and 11 million garments.

Meanwhile, even as it expands its apparel manufacturing capacity, the company has also upped
the ante in its brands and retail business segment. The group already has licensing relationships
with international brands such as Gant, Arrow, Izod, Energie, US Polo Association, Elle,
Cherokee, Mossimo, Geoffrey Beene, Debenhams, Nautica, Next and Hanes, among others.
However, Arvind is targeting revenues of Rs. 5,000 crores from its brands and retail businesses
alone in the next five years, which currently stands at around Rs. 2,000 crores of its total
revenue.

All of these strategies suggest that the company is planning on to capitalize on its current
market strengths in order to defend their market position which makes them a very safe and
lucrative option for Arvind Mills. Further, keeping in mind that the Gap Management has been
taken care of by the company, it keeps a lot of stability and growth potential in the company’s
pockets.

Knits: The Question Marks

Top textile companies to enhance export market share have started spending on research and
development (R&D) to come out with newer products as they feel it is the only way to keep
their market and patents help to give their innovations longevity as replicas don’t get created
and the innovations can take their business to the next level and also give the companies high-
margin products.

Top textile companies to enhance export market share have started spending on research and
development (R&D) to come out with newer products as they feel it is the only way to keep
their market and patents help to give their innovations longevity as replicas don’t get created

37
and the innovations can take their business to the next level and also give the companies high-
margin products.

Arvind also plans to double the number of Creyate stores it has from the current 13 over the
next 12-18 months. It will look at opening at least a couple more luxury Creyate outlets too. At
the lower end of the spectrum in Creyate luxury stores, i.e. suits that cost around Rs60,000, the
brand will be a notch above offerings from Raymond’s Made to Measure or Brooks Brothers,
for instance. Whereas, the highest end of Creyate’s offerings (suits that cost more than Rs2
lakh) will pit it against global brands like Hugo Boss and Armani.

Arvind also plans to double the number of Creyate stores it has from the current 13 over the
next 12-18 months. It will look at opening at least a couple more luxury Creyate outlets too. At
the lower end of the spectrum in Creyate luxury stores, i.e. suits that cost around Rs60,000, the
brand will be a notch above offerings from Raymond’s Made to Measure or Brooks Brothers,
for instance. Whereas, the highest end of Creyate’s offerings.

Post demerger, Arvind will continue its core business of textile product manufacturing (across
categories such as denim fabric, woven fabric, garments, voiles, knitwear), in addition to
managing the other relatively smaller segments such as Arvind Internet and technical textiles.
To keep the business model asset-light and generate steady return on capital, no investments
will be made in capital-intensive backward integration technologies (fibre and yarn
manufacturing).

These parts of a business have high growth prospects but a low market share. They consume a
lot of cash but bring little in return. In the end, question marks, also known as problem children,
lose money. However, since these business units are growing rapidly, they have the potential
to turn into stars. The company should look on to Build its capacity so as to Increase investment
in a product to increase its market share. In this fashion, they can push a question mark into a
star and, finally, a cash cow.

Voiles: The Cash Cows

The textile division revenue grew at healthy rate of 9.66% during FY17 as compared to 3%
growth of FY16 with further reduction in dependence on denim segment. It was on account of
volume growth in woven and garment segment. Voiles segment also grew steadily by 12%

38
during FY17. Arvind also earns revenue from export market which comprised nearly 24%-
28% of its consolidated revenue over the past three years ended FY17.

Lifestyle Division of Arvind Limited is a leader in the Voiles Segment for womenswear. The
company reaches out to more than 10,000 retail outlets throughout India. For more than five
decades, Ankur has been designing high-quality voiles ranging from 100 per cent cotton to all
fancy blends that are available throughout India and exported to Switzerland, Middle East,
China, Thailand and Africa.

Arvind made a key announcement of demerging two of its segments into separate entities at a
recently held analyst meet. GST disruptions, a challenging domestic environment, and high
raw material prices took a toll on the company’s textile segment (constituting 50-60 percent of
the total consolidated revenue) performance.

Branded apparels (comprising 30-40 percent of the total consolidated revenue) reported an
impressive set of numbers in terms of turnover and operational efficiency because of a recovery
in wholesale and retail channels in August and September. They have forayed into the multi-
fibre fabrics space with a wide range of modal, viscose, cotton Lycra blended fabrics as an
alternative to traditional cotton for the new-age Indian woman. These fabrics are available
under brands like Zoya, Glam and Glory, Blossom, Zoya Silk, and Lilac, and can be tailor-
made into western and ethnic womenswear such as dresses, blouses, kurtis, and tunics.
Womenswear fabric is a highly disruptive fast-fashion market in India and abroad. Seasonal
trends in India are led by festive and wedding seasons, and vary widely, depending on the local
tastes and preferences. The womenswear fabric category in India is recording double-digit
growth every year. In the last two to three years, fashion tastes have shown an inclination
towards jacquards and prints.

Hence, this portfolio remains a safer option for the company to gear up its future growth plans
which have the potential of delivering steady incomes to the income and at the same time
encompassing a target market segment which is the most lucrative in terms of spending and
buying rate.

Recommendations
The company should stabilize its operation in the denim faction and innovate in the wovens
and voiles. Knits segment needs to undergo a thorough R&D process which ensures revival.

39
 ANNEXURES

I. DEMERGER NEWS

40
 II. DENIM POPULARTY

III. INTERVIEW OF J SURESH, MANAGING DIRECTOR =, ARVIND LIFESTYLES

(Courtsey: Money Control)

Q: What has been the key performance driver for the branded apparel segment
which is now a part of Arvind Fashions?

A: When we built the portfolio we saw that India was beginning to move away from formal
dressing to more casual dressing, that is where we built our strength. The entire portfolio if you
take whether its US Polo, Flying Machine which we relaunched. Flying Machine of today is
quite different from the Flying Machine of olden days. Brand had come to more or less zero
sales level. We relaunched it and pulled it out and today we are at number two, only Levis is
ahead of us in the denim space.We have also bought in some newer brands like GAP,
Aeropostale, Ed Hardy, everything is in the casual space. That move really paid off. That’s the

41
big difference with us vis-à-vis some of our peers. That is the reason we have been able to
deliver a 20 percent growth rate in the last 5-6 years. In the last 4-5 years, we have been
delivering close to 20 percent that is by far the fastest growth rate for us. So we have built the
portfolio ahead of the market trend. Now we have a strong position in denim space where we
are very clearly number one in the premium side of our business.

Q: How did you fare during the festive season and approximately how much
revenue did you garner during that quarter?

A: Diwali was pretty good. Dussehra and Diwali were very good. After Diwali there was a
period of lull. Now in December, it has again picked up. We do not give revenue figures
specifically for the festive season but what we are talking about is that one indicator of the
good festive season is the sales growth. Compared to the last two festivals this has been higher.

Q: How does Arvind Fashions intend to tackle risks associated with steep
discounting offered by e-commerce market players? Is it a threat to the
company's offline business?

A: E-commerce is a good opportunity and not a threat. While buying, a customer does not think
I am an online or offline consumer. Consumers are buying seamlessly. We need to be present
in all segments. We need to see how markets will evolve. If going ahead e-commerce becomes
80 percent, we should be prepared for that. The way we are looking at it is a very unified
experience both online and offline.

Q: What is the store count across all brands? How many more are likely to be
added?

A: We open about 150-200 every year. We are seeing some changes online coming up. So we
need to we need to make a little bit of careful judgment how many stores we should open, as
online also takes away certain sales. Going forward, we would be largely in Tier III and largely
franchise route. We are pretty much filled up in Tier I and Tier II.

Q: In how many channels do you operate?

A: We operate in four channels. One is our own stores, 1400 stores across all brands put
together. We are present in close to 200 towns. We have covered around 110 towns in Tier I

42
and Tier II, and in Tier III there are 320 towns, of which we are present in 70 towns. So there
is a way to go there and that will be our focus.

Q: How much revenue are you targeting over the next five years?

A: What we are targeting is Rs 7,500 crore by 2022. More important is in this phase of
expansion we had actually done well in terms of topline growth. Our focus will be more on
driving the profitability and return on the capital employed.

Q: Are you on profitable track in terms of all brands?

A: In terms of financials we are in good shape. We have hospitality. On the verge of break
even. This year all will be positive. In terms of a percent we are 60 percent of men’s wear, 15
percent kids wear, 10 percent innerwear, 12 percent in women wear and beauty contributes 6
percent.

Q: What is the budget for marketing and advertisement?

A: We have upped our marketing spend this year. Earlier we used to spend 4 percent, this year
we are 5.50 percent of sales.

43
 LIMITATIONS

The entire study in this project is based on secondary sources of information i.e. interviews,
news reports, financial Reports of Arvind and various presentations provided on the company’s
websites. There is no primary interaction with any company official in the present study as well
as no extraction of information at an individual level. However, the Research available is
authentic and availed from authentic sources.

BIBLIOGRAPHY

1. https://www.arvind.com/businesses/fabric-apparel.
2. https://www.arvind.com/brands-retail.
3. https://www.business-standard.com/article/management/arvind-less-of-denim-more-
of-brands-111121200042_1.html.
4. http://www.indiantextilejournal.com/News.aspx?nId=B31+A64YEfmdTAqBqdguUA
5. https://www.livemint.com/Companies/8HxEzvSLWaOVkTNTGtvGOK/Arvind-to-
demerge-list-branded-apparel-engineering-busines.html.
6. https://www.ibef.org/industry/textiles/showcase/arvind-limited.
7. https://www.clearpointstrategy.com/strategic-planning-models/
8. https://www.marketing91.com/process-gap-analysis/
9. https://retail.economictimes.indiatimes.com/news/apparel-fashion/apparel/arvind-to-
scale-up-textiles-business-to-10000-crore-by-2023/64675721.
10. https://www.arvind.com/sites/default/files/field_investor_updates_file/AFLInvestorPr
esentation25Aug18.pdf.
11. https://www.arvind.com/sites/default/files/field_investor_updates_file/July%202018.p
df.
12. https://www.arvind.com/sites/default/files/field_investor_updates_file/ArvindLtdInve
storPresentationMarch15.pdf.
13. https://www.businessnewsdaily.com/5693-bcg-matrix.html.
14. http://www.indiantextilemagazine.in/cover-story/arvind-stepping-up-investments-in-
garmenting-retail/
15. https://simconblog.wordpress.com/2015/10/16/arvind-mills-company-analysis/

44
16. https://www.moneycontrol.com/news/business/companies/arvind-fashion-eyes-rs-
7500-crore-revenue-by-2022-j-suresh-ceo-3314441.html.
17. https://www.textileworld.com/textile-world/knitting-apparel/2019/08/denim-talks-
highlights-global-fashion-brand-perspectives-in-line-with-circular-fashion/.
18. http://www.careratings.com/upload/CompanyFiles/PR/Arvind%20Limited-09-28-
2017.pdf.
19. https://www.yarnsandfibers.com/news/news-tags/arvind?page=1.
20. http://arvind.com/wovens/whoarewe

45