It aimed at manufacturing high-end superfine fabrics with imported state-of- the-art machinery. With 52, ring spindles, doubling spindles and looms, it was one of the few companies in the early period of Indiasindustrialisation to have spinning and weaving facilities along with full-fledged facilities for dyeing, bleaching, finishing and mercerising. In the mid s the Indian textile industry was faced with a crisis on account of the power loom sector churning out vast quantities of inexpensive fabric which led to many large composite mills losing their markets.
An in-depth analysis of the world textile market proved an eye opener. People the world over were shifting from synthetic to natural fabrics. Cottons were the largest growing segments.
But where conventional wisdom pointed to popular priced segments. Arvind has carved out an aggressive strategy to vertically its current operations by setting up world scale garmenting facilities and offering a one-stop shop service, by offering garment packages to its international and domestic customers.
SummeryIn s Arvinds Mills ltd. The 10 years old Textile mills at Ahmadabad was struggling for market place but within a decade it not only survived but has also become impotence parts of stock exchange.
InIndian textile was dominated by mills with obsolete and marching producing un acceptable quality in international market. The main reason behind for this was state of affair largely the protected domestic market and governments policies discouraging modernizationrigid licensing, high import tariffs and modernization cost was high.
The combination of highly negative technology and economic environments and existing of global opportunity in textile industry called bold and innovative approach for survival and growth. Arvind mills examined the textile industry in relation to govt through Portors five forces framework from the analysis it become clear that there was intense rivalry.
The government policy in macro economy in the country gave two clear signals. One could not expect relief on excise taxes and other government controlled input like power, coal, freight etc. The strategic options for Arvind mill to have competitive market with high technology content and capital intensive so that entry barrier for competitors to be high and focus of market shifted to international trade in textile.
In new structure of Arvind mills, it focused on just in time delivery, altered its structural relationship based on core processes and concept of value addition, abolishing the hierarchical senior manager. The Arvind mills worked on its human resource by sourcing of proper managerial talent from diverse backgrounds with fresh perspective and preconceived mindset.
Finally, the performance of Arvind mills have been have been outstanding with huge export earnings, increase in sales and simultaneously earned huge profit till the The company realized that major challenges in the next few years would be non-stop renewal of strategy to stay ahead from the competitors, developing better customer orientation and maintaining technological lead for product innovation.
The main reasons for this state of affairs are because of past unfavourable and restrictive government policies as the sector was reserved under small-scale industries.
Obsolete technology did not allowed for excess to bigger market and as such resulted in low margins and profitability. This restricted the expansion and thus the players got stuck in a vicious cycle of low profitability and resulting inability to upgrade.
FDI was not allowed in this sector and as the financial power of Indian players was weak industry consolidation did not happen. Industry is highly capital intensive and economies of scale are highly visible.
The production strategy requires long and continuous production runs. Different fabric types and coloring etc.
Industry does not have a clear market leader, which impedes its development. A clear market leader may have guided the industry and also provided the bargaining power with different stakeholders and would have helped in creation of demand.
There are some positives like the cheap availability of raw material and easy access to labor. But these are negated to some extent when we consider that the quality of cotton is questionable and the productivity of labors is lower then those in competing countries.
This market is dominated by regional players who offer traditional clothing like dhotis etc. But there are some positive emerging trends in the fabrics industry. The North American and European players are transferring their supplies to Asia and neighbouring countries.
This has meant that quality players like Arvind Mills and Raymond have to increase capacity to take advantage of this shift in supplies. Globally a player prefers sourcing form manufacturers and follows a long-term commitment.
But the negative thing happening now is that some small players have also understood this shift and has invested in technology up gradation.
But as these players has not, as of now, any credibility regarding the quality and consistency of their products, they are reduced to competing with established players in the domestic market and this has led to price wars.
Players in fabric segment have not been able to capture value in both domestic and international markets. In domestic market this is because the regional players cannot be matched on prices and they make use of their excess capacity by offering at marginal price.
The inability of communicating the value to customer has resulted in failure of players like Arvind Mills to capture value. As such the margins and profits are low. In the exports market Indian manufacturers are competing against countries, which have better labor productivity and huge economies of scale.ARVIND MILLS LIMITED than the textiles industry’s ROCE of per cent.
Arvind Mills’ contribution in making ‘Made in India’ global Financial Analysis Arvind Mills has witnessed a growth in gross sales during the period to at CAGR of per.
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Victor Lighthouses . Arvind mills examined the textile industry in relation to govt through Portor’s five forces framework from the analysis it become clear that there was intense rivalry.
The government policy in macro economy in the country gave two clear signals. Online Courses, Best free online certificate computer, education, learning courses, diploma, degree, language, training, certification, university, college online.
Introduction Apparel Industry Analysis of Arvind’s Brand Portfolio Arvind’s Competition Growth Strategies SWOT Analysis PORTERS FIVE FORCES Analysis Branding Strategies Issues Conclusion INTRODUCTION2/5(2).
Free Pest Analysis Of Arvind Mills. Arvind Mills – A turnaround story When the World Trade Organisation removed the quota restrictions on countries exporting garments on January 1, it opened up a new era for the Indian textile industry, thereby ending forty long years of protectionism by the developed countries.
It is estimated that .