Strategic Management

on
Arvind Mills
By,
Ajay |Ayushi |Abhinaya |Deepak |Manish |Hari
Law 1
Cost & Price always declines
March 31, 2013 March 31, 2012

Cost of consumables 1641 1569

•The cost of consumables given above is for the entire Arvind mills products.

•There is a huge fluctuation in textile industry due to various distribution

level

•As the cost is increasing the price of the end product is also increasing
 Law 2
Competitive position determines
your position
• Return on Asset : 11%
• Market Share: 10.12%
• Largest Competitor Market Share (S Kumar's): 9.51%
• Relative Market Share: 1.06

• Which determines that Arvind Mills is the market

leader in textile industry.
 Market Share Trends
Shirting Market Gaining Garmenting
2000 1000
504
1500 800 460
1100 526
1000 600 458
1000 800
600 400 419.1
314.1
500 200
296.9 337 143.7 185.6
211.8 229
0 0
2011 2012 2013 2014 2011 2012 2013 2014
Raymond Arvind Raymond Arvind Mills

Denim
3000
2500 1600
1400
2000 1100
1500 800
1000 955.3
807.1 850.4
500 642.7
0
2011 2012 2013 2014
Raymond Arvind Mills
Competitive Advantage of Arvind
Mills
Focus on Retail company want to achieve 80% of its sale through
apparel.

Globalization Strategy

Launching of spectrumplaza.com

Tie ups with Indiatimes.com and rediff

Law 3
Customers & Profit pools don’t stand
still
Attractive Customer Segment
Flying Machine Newport Ruf n Tuf Excalibur
Launched 1980 1993 1997 1995
Age group 15-30 18-28 15-30 18 & Above
Price range 500-2500 600-1500 299-699 500-1000
Difficulties Hike in exise to Hike in exise to Distribution ----
faced 8% 8% hurdle
Retailer own outlet own outlet Big Bazaar
Brand Abhishek Saif Ali Khan Akshay kumar ----
ambassador Bachchan
Tag Line Who Needs The Measure ---- ----
Phoren? of Success
 International Brands

Arrow Lee Wrangler Tommy Hilfiger

Licensed Cluett, VF corporation VF corporation JV with
peabody & co., Murjani group
USA
Age group 27-35 4-14 & 17-25 17-25 &25-40 18 & Above
specifics Four sub brand Adjudged the •Fashion Introduced
•Classic images fashion conscious men’s
•Premium award “most •Love wearing sportswear,
•Urban admired denim on men’s
•Sports Jeanswear” weekend Jeanswear,
brand •Retail junior
ambience was Jeanswear
given
importance
Customer Loyalty Program (Megamart)
Law 4
Simplicity gets results
Value Chain In The Textile Industry

12
 PRODUCTION PLANNING AT
Arvind Mills
Not
Buyer Approved Goes to the Marketing dept.
requirements Design customer for generates sale
approval order with delivery
date

Routing and Planning of raw

Quality Control Planning of work
scheduling materials

Production Planning and Control

Product Flow
Information Flow
PROCESS DIAGRAM
MANUFACTURING PROCESS AT
Arvind Mills
Manufacturing Process at
Arvind Mills
 KEY PERFORMANCE
INDICATORS @ Arvind Mills
Delivery on Time

Productivity Improvement

Improvement of Equipment Efficiency

Reduce WIP

Reduce Overheads

Reduce Obsolescence

Improving the Bottleneck Stages

Point of Departure

 Less productive machines in process has to be

eliminated.
 Presence in only big cities & lack of rural penetration.
 Growth can be attributed mainly to the denim
garments, which is the largest garment segment today.
Mills with obsolete and old machinery.
Spinning the capital intensive part was handled by
the automatic mills
Point of Arrival

Vertical integration, diversification and huge capacity

setup.
Process innovation and cost player strategy to defend
its Foreign Market.
Improving its supply chain and inventory management
through further tying up with farmers, usage of ERP
system and increase in the plant efficiency with the
use of technology .
Alliance with establish brands.
Explore the rural market with affordable brands like
Newport .