INDUSTRIAL REPORT

INDUSTRIAL VISIT REPORT

ON

ARVIND LIMITEDNaroda Road Ahmedabad-380025

Gujarat

Submitted in partial fulfillment for the award of the Degree of Master of Business Administration

Jodhpur National University

Submitted To: - Submitted By:-Prof. G. N. Mathur Abhishek rai

(Vice Principle) ROLL NO. 203MBA(2011-2013)

JODHPUR NATIONAL UNIVERSITY, A-301 ANCHAL COMPLEX RESIDENCY ROAD, JODHPUR-342003

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DECLERATION

I am Abhishek Rai student of MBA IInd semester Jodhpur Institute of Management affiliated to Jodhpur National University, Jodhpur here by solemnly declare that industrial visit report “Arvind Limited, Gujarat” is the my own research and prepared by me and the same has not been submitted to any other university or institute for the degree or diploma.

Place:- Jaipur Abhishek raiDate:- 9-04-11 Roll No. 203

MBA(2011-2013)


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ABSTRACT

This industrial visit report includes the report visit to Arvind Limited, Ahmadabad, Gujarat. This report is a necessary part of IInd semester of MBA according to Jodhpur National University Syllabus.

The Arvind Limited is very good diversified industrial house with a 80 year history behind it. The Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931. With the best of technology and business acumen, Arvind has become a true Indian multinational, having chosen to invest strategically, where demand has been high and quality required has been superlative. Today, the Arvind Mills Limited is the flagship company of Rs.20 billion (US$ 500 million) Lalbhai Group.In the regular changing scenario of fashion, company has maintained its focus on its core product which gives an upper hand in the competition through the world. With its presence across the textile value chain, the company endeavors to be a one-stop shop for leading garment brands.Fore vision and Technology has brought Arvind to be one of the top three producers of Denim in the world, and on its way becoming the Global Textile Conglomerate, Arvind is already making its presence felt in Shirting’s, Knits and Khakis fabrics apart from being all set to create ripples in the ready to wear Garments world over.

In this report detail of Arvind limited, Ahmadabad, Gujarat manufacturing process of Denim brands, Marketing Strategy, Marketing and distribution network, Research and Development, Environmental Practices, Expansion plans, Awards


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ACKNOLWGMENT

There are number of people to whom we are deeply indebted and would like to acknowledge their contributions toward this industrial visit report.

Firstly, we would like to give our utmost gratitude to Prof. G. N. Mathur, whose enormous and endless effort has enhanced our ability and personality beyond any expectations.

We would like to present our wholehearted appreciation to our college faculty members who have taught us invaluable lessons during visit at Arvind limited, Ahmadabad. We would also like to extend our thankfulness to all our teachers who are guided us.

Our special thanks go to Prof. Gopal Narayan Mathur, a Lecturer at ICMAI College for organized industrial visit and his invaluable guidance.


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ARVIND LIMITED, AHEMDABAD, GUJARAT

TABLE OF CONTENTSJODHPUR NATIONAL UNIVERSITY, A-301 ANCHAL COMPLEX RESIDENCY ROAD, JODHPUR-342003

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DECLRATION…………………………………………………..ABSTRACT……………………………………………………...ACKNOWLEDGEMENT……………………………………….S. NO. CONTENT PAGE NO. 1 INTRODUCTION OF INDUSTRY 8-92 INTRODUCTION OF ARVIND LTD. 10-113 BOARD OF DIRECTORS 12-134 SOCIAL CONTRIBUTIONS 144 HUMAN RESOURCES5 OBJECTIVE & GOALS6 ACCREDITATIONS7 MANUFACTURING PROCESS8 MARKET POSITION9 DEVELOPMENT & GROWTH10 EXPORT11 FINANCIAL & MATERIAL STATUS12 CUSTOMER SERVICES13 TECHNOLOGY & R & D14 SPECIAL EVENTS15 BIBLOGRAPHY


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INDUSTRY INTRODUCTIONThe Indian textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, 18 percent of employment in the industrial sector, nearly 20 percent to the country’s total export earning and 4 percent to the Gross Domestic Product.

In human history, past and present can never ignore the importance of textile in a civilization decisively affecting its destinies, effectively changing its social scenario. A brief but thoroughly researched feature on Indian textile culture.

HISTORY OF TEXTILE INDUSTRY

India has been well known for her textile goods since very ancient times. The traditional textile industry of India was virtually decayed during the colonial regime. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets.The first cotton mill in Ahmedabad, which was eventually to emerge as a rival centre to Bombay, was established in 1861. The spread of the textile industry to Ahmedabad was largely due to the Gujarati trading class.The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mills; but during the year 1900 the cotton textile industry was in bad state due to the great famine and a number of mills of Bombay and Ahmadabad were to be closed down for long periods.The two world War and the Swadeshi movement provided great stimulus to the Indian cotton textile industry. However, during the period 1922 to 1937 the industry was in doldrums and during this period a number of the Bombay mills changed hands. The second World War, during which textile import from Japan completely stopped, however, brought about an unprecedented growth of this industry. The number of mills increased from 178 with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5.10 lakh workers.

The cotton textile industry is rightly described as a Swadeshi industry because it was developed with indigenous entrepreneurship and capital and in the pre-independence era the Swadeshi movement stimulated demand for Indian textile in the country.

The partition of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of the land under cotton cultivation went to Pakistan.


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Some mills were closed down for some time. For a number of years since independence, Indian mills had to import cotton from Pakistan and other countries.

After independence, the cotton textile industry made rapid strides under the Plans. Between 1951 and 1982 the total number of spindles doubled from 11 million to 22 million. It increased further to well over 26 million by 1989-90.

CURRENT POSSITION OF TEXTILE INDUSTRY IN INDIA

Textile constitutes the single largest industry in India. The segment of the industry during the year 2000-01 has been positive. The production of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales during 2000-01. Production of man-made fibre increased from 835 million kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a growth of 8.26%. The production of spun yarn increased to 3160 million kgs during 2000-01 from 3046 million kgs during 1999-2000 registering a growth of 3.7%. The production of man-made filament yarn registered a growth of 2.91% during the year 1999-2000 increasing from 894 million kgs to 920 million kgs. The production of fabric registered a growth of 2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to 40,256 million sq mtrs. The production of mill sector declined by 2.6% while production of handloom, powerloom and hosiery sector increased by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments increased from Rs. 455048 million to Rs. 552424 million, registering a growth of 21%. Growth in the textile industry in the year 2003-2004 was Rs. 1609 billion. And during 2004-05 production of fabrics touched a peak of 45,378 million squre meters. In the year 2005-06 up to November, production of fabrics registered a further growth of 9 percent over the corresponding period of the previous year. With the growing awareness in the industry of its strengths and weakness and the need for exploiting the opportunities and averting threats, the government has initiated many policy measures as follows.The Technology Upgradation Fund Scheme (TUFS) was launched in April 99 to provide easy access to capital for technological up gradation by various segments of the Industry.The Technology Mission on Cotton (TMC) was launched in February 2000 to address issues relating to the core fibre of Cotton like low productivity, contamination, obsolete ginning and pressing factories, lack of storage facilities and marketing infrastructureA New Long Term Textiles and Garments Export Entitlement (Quota) Policies 2000-2004 was announced for a period of five years with effect from 1.1.2000 to 31.12.2004 covering the remaining period of the quota regime.


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INTERODUCTION Arvind Limited:-

The Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931. With the best of technology and business acumen, Arvind has become a true Indian multinational, having chosen to invest strategically, where demand has been high and quality required has been superlative. Today, The Arvind Mills Limited is the flagship company of Rs.20 billion (US$ 500 million) Lalbhai Group.

Arvind Mills has set the pace for changing global customer demands for textiles and has focused its attention on select core products. Such a focus has enabled the company to play a dominant role in the global textile arena. With its presence across the textile value chain, the company endeavors to be a one-stop shop for leading garment brands.

Fore vision and Technology has brought Arvind to be one of the top three producers of Denim in the world, and on its way becoming the Global Textile Conglomerate. Arvind is already making its presence felt in Shirting’s, Knits and Khakhis fabrics apart from being all set to create ripples in the ready to wear Garments world over.

HISTORY

Kasturbhai Lalbhai Narottambhai Lalbhai Chimanbhai Lalbhai

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 this time, Mahatma Gandhi championed the Swadeshi Movement and at his call, people from all India began boycotting fine and superfine fabrics, which had so far been imported from England. In the midst of this depression one family saw 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 Mills was born.


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Arvind Mills started with a share capital of Rs 2,525,000 ($55,000) in the year 1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. The sales in the year 1934, three years after establishment were Rs 45.76 lakhs and profits were Rs 2.82 lakhs. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.

In the mid 1980’s the textile industry faced another major crisis. With the power loom churning out vast quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of closure. Yet that period saw Arvind at its highest level of profitability. There could be no better time, concluded the Management, for a rethink on strategy. The Arvind management coined a new word for it new strategy – Renovision. It simply meant a new way of looking at issues, of seeing more than the obvious and that became the corporate philosophy. The national focus paved way for international focus and Arvind’s markets shifted from domestic to global, a market that expected and accepted only quality goods. 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, Renovision pointed to high quality premium niches. Thus in 1987-88 Arvind entered the export market for two sections. Denim for leisure and fashion wear. And high quality fabric for cotton shirtings and trousers. By 1991 Arvind reached 1600 million meters of Denim per year and it was the third largest producer of denim in the world.

In 1997 Arvind set up a state-of-the-art shirting, gabardine and knits facility, the largest of its kind in India, at Santej. With Arvind’s concern for environment a most modern affluent treatment facility with zero affluent discharge capability was also established.Year 2005 is a watershed year for textiles. With the mulitifiber agreement getting phased out and the disbanding of quotas, international textile trade is poised for a quantum leap. In the domestic market too, the rationalizing of the cenvat chain and the growth of the organized retail industry is likely to make textiles and apparel see an explosive growth.

Arvind has carved out an aggressive strategy to verticalize its current operations by setting up world-scale garmenting facilities and offering a one-stop shop service, of offering garment packages, to its international and domestic customers.

With the Indian economy poised for rapid growth, Arvind brands with its international licenses of Lee, Wrangler, Arrow and Tommy Hilfiger and its own domestic brands of Flying Machine, Newport, Excalibur and Ruf & Tuf, is setting it’s vision on becoming the largest apparel brands company in India.

Board of Directors

CHAIRMAN AND MANAGING DIRECTOR


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Mr. Sanjay S. Lalbhai

He is a Chairman and Managing Director of the Company. He is a Science Graduate with a Master’s degree in Business Management. He has been associated with the Company for more than 28 years. He also holds directorships in Arvind Spinning Ltd., Mauritius, Amol Decalite Limited, Mahindra Gujarat Tractor Limited, Torrent Pharmaceuticals Limited, Arvind Worldwide Inc.,USA, Arvind Worldwide (M) Inc. and Arvind Overseas (M) Ltd.

DIRECTOR AND CHIEF FINANCIAL OFFICER

Mr. Jayesh K. Shah

He is a Wholetime Director with designation of Director and Chief Financial Officer of the Company. He is a Commerce Graduate and Chartered Accountant and has been with the company for more than 22 years. He has a distinguished academic career and extensive administrative, financial, regulatory and managerial expertise. He also holds directorships in various companies.

OTHER DIRECTORSMr. S. R. Rao (Nominee of EXIM Bank)


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He is a Nominee Director of EXIM Bank. He is a graduate from The Indian Institute Of Technology, Bombay. He is the Chief General Manager of EXIM Bank of India. He is also on the Board of Global Procurement Consultants Ltd., Global Trade Finance Ltd., and Nagarjuna Oil Corporation Ltd.

Mr. K.M. Jayarao (Nominee of ICICI Bank)

He is a Nominee Director of ICICI Bank Ltd. He is a B.E. (Mechanical) and a Senior General Manager of ICICI Bank Ltd. He is also on the Board of Ispat Industries Ltd., Nagarjuna Fertilizers and Chemicals Ltd., Share Microfin Ltd., and Aban Loyd Chiles offshore Ltd.

Mr. Sudhir Mehta

He is a Non-executive and Independent Director of the Company. He is a Science Graduate from Gujarat University He was instrumental in the growth and progress of Torrent Pharmaceuticals Ltd. the flagship Company of the Torrent Group. He systematically expanded the power business of Torrent Group by acquiring significant stakes in the Torrent Power AEC Ltd. and Torrent Power SEC Ltd. and Torrent Power Generation Limited now merged with Torrent Power Limited and one among the few successful independent power projects in India. He has managed strategic alliance with leading international giants from U.K., Germany, France and USA. He is an Executive Chairman of Torrent Power Limited, Chairman of Torrent Pharmaceuticals Limited and Torrent Private Limited and a Director of The Torrent Power Transmission Private Ltd.

Mr. Tarun Seth

He is a Non-executive and Independent Director of the Company. He has a master’s degree in Arts (Sociology) from M.S University and ITP Harvard Business School, USA. He is a Management Consultant. He was a President of Bombay Management Association and a member of professional bodies like Indian Society for Applied Behavioral Science, Indian Society for Training and Development and Bombay Management Association. He is on Board of various Companies. He is a former faculty member of Motorola University and has trained Motoral managers in the US, Europe, Australia, China, Taiwan, Singapore and India. He is an independent and a non-executive Director of the Company.

Mr. Munesh Khanna

He is a Non-executive and Independent Director of the Company. He is a Chartered Accountant from Institute of Chartered Accountants of India. He has 21 years of experience in Investment Banking from across the Industrial spectrum in India in the areas of M&A, Financial Restructuring and Resource Raising. In addition, he has also an extensive experience in the Energy, Utilities and Telecom sectors. Prior to joining Halcyon Resources & Management Consulting Private Limited, he was the Managing


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Director and Head of Investment Banking in DSP Merrill Lynch. Prior to this he was the Country Head and Managing Director of Rothschild India and Partner- Country Head of Arthur Andersen Corporate Finance. He has advised Indian Lenders on the Restructuring of the Dabhol Power Project and LNG facility for a total value of US$ 1.9 billion. AXA on its joint venture with Bharati Group, Air Deccan on raising funds US$ 40m through Private Equity and IPO and many other significant transactions.

He is a member of the Young President Organisation (YPO). He was also a Member of CII and a member of the Executive Committee of Federation of Indian Chambers of Commerce and Industry ('FICCI') and Co - Chairman of the Finance & Capital Market committee of FICCI.

Mr. G.M.Yadwadkar (Nominee of IDBI)

He is a Nominee Director of IDBI. He is a General Manager of IDBI, Ahmedabad. He is also on the board of Ecoboard Inds. Ltd. Pune, SJK Steel Plant Ltd., Hyderabad, Gujarat Alkalies & Chemicals Ltd., Vadodara and Gujarat Industrial and Technical Consultancy Organization Ltd

SOCIAL CONTRIBUTIONS

The Lalbhai Group has made significant monetary and management contributions to the following Institutions that all are arvind limited


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EDUCATION – PROFESSIONAL, CULTURAL, AND RESEARCH BODIES

Ahmedabad Education Society Lalbhai Dalpatbhai Institute of Indology Ahmedabad Textile Industries Research Association (ATIRA)

L.D. Engineering College L.D. Arts College Indian Institute of Management, Ahmedabad Gujarat University Mohinaba Kanya Vidyalay Rachana School Lalbhai Dalpatbhai Municipal School Lalbhai Dalpatbhai Bharatiya Sanskriti Vidya Mandir Consumer Education and Research Center

HUMAN DEVELOPMENT

Sharda Trust Narottam Lalbhai Rural Development Foundation Chandraprasad Desai Memorial Foundation Blindmen’s Association Sankat Nivarn Samhiti

MEDICAL CARE AND RESEARCH

Gujarat Cancer Society Jiuraj Hospital Shaardaben Chimanbhai Minicipal Hospital Sharda School of Mentally Retarded Children Sudhir Chimanbhai Rehabilitation Center

HUMAN RESOURCES


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Human Resources for a business enterprise needs a conceptual outlay to enable business managers to identify, plan and implement planning for manpower. Fundamentally, business situations have changed the world over. The rise of the intellect has been imminent. Human resource planning can no longer confine itself to the traditional sources for hiring and retaining. The human resources of today see their roles having changed from that of a doer to that of a thinker and on most occasions “a thinker doer”. HR VISIONBe The Foundation That Integrates Culture, Vision & Values , Creates an Environment That facilitates The Maximizationof Human Potential. PHILOSOPHYWE BELIEVEIn people and their unlimited potential.In content and focus in problem solving.In teams for effective performance.In intellect & its power.

WE ENDEAVOURTo select, train and coach people to obtain higher responsibilities.To nurture talent to build leaders for tomorrow's corporation.To reward, celebrate and activate all intellectual business contributions.

WE DREAMOf excellence in all endeavours.Of mutual benefit and prosperity.Of making the world a better place to live in.We Make Things Happen.

DIVISION & ACCREDATIONS

Lifestyle Fabrics


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The Fabric of a Global SocietyIn a world without boundaries, Arvind fabrics are equally universal in their appeal. Arvind aims to enrich lifestyles globally, inspiring diverse customers with the beauty of their fabric.

Denim

There are many delightful features of Arvind denim: An annual capacity of 110 million meters; the position of 3rd largest producer of denim in the world; and an export network of 70 countries worldwide. Prominent products in this category include ring denim, indigo voiles, organic denim, bi-stretch denim and fair trade certified denim. This is apart from regular light, medium and heavy weight denims. They come in various shades of indigo, sulphur, yarn-dyeds, in 100% cotton and various blends.

With a discerning clientele that includes GAP, VF Corporation, Levi Strauss, Abercrombie & Fitch, Calvin Klein to name a few, Arvind has to stay fashionably ahead. Their designers based out of Japan, Europe and USA create trend setting collections for the season, ensuring that heads keep turning for the Arvind name. Good from the outside and from within is the hallmark of a good product. Denim from Arvind offers reliability, quality and value-addition through services like shrink-film wrapping, bar-coded labeling of rolls, providing washed and unwashed shade blankets with every order, besides faster documentation. The facilities of Arvind Denim are accredited with ISO 9001, ISO 14001, OEKOTEX 100, GOTS, Organic exchange standard, FLO for fair trade and Lycra Assured. The labs are accredited by Dupont, Levi Strauss.

Further, there’s excellent infrastructure, state-of-art technology and a dedicated customer counselling team that continuously resolve quality issues and provide desired wash results. Arvind also has in place an effluent treatment facility, which recycles waste water and converts denim waste to denim paper, in keeping with their eco friendly production process.

As one of the largest denim producers in the world, Arvind caters to quality markets of Europe, US, West Asia, the Far East and the Asia Pacific.

Shirting’s


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Arvind Shirting fabric has many aces up it’s sleeve. It is one of the most well-known products of Arvind Group, selling at a premium in the international market. It has an astonishing annual capacity of 34 million meters. Prominent products within this category include fabrics with non-iron properties, mechanical finishes, printed fabrics apart from the cotton and cotton blends in Linen, Lycra, Polyester, Modal, Silk etc. with varieties in yarn dyeds and solids.

Further, Arvind has a unique plant for manufacturing very light weight indigo dyed fabrics in yarn dyed and solids for top weights. Arvind Shirting has a liquid ammonia based fabric processing plant and a state-of-the-art print house – a first for India and one of the few in Asia. The clientele for the product include names like Polo, Ralph Lauren, ESPRIT, GAP, FCUK, Zara, Pull & Bear, Louis Philippe, Van Heusen, Allen Solly, Color Plus, Parx and Park Avenue.

Backed by the latest technology and state-of-the-art equipment, every stage of the production process, right from spinning of the yarn to final processing and testing of the fabric, ensures that stringent quality standards are met and products remain eco-friendly.

The plant is equipped for spinning company, lycra and super fine yarn up to 170’s count. This is in addition to an existing state-of-the- art yarn dyeing facility, automatic drawing in unit and an automated fabric inspection and packing facility. And if that wasn’t enough, the division has the largest sampling plant in India for speedy churning out of desk looms and yardages for customers. Plus, there’s additional support from an in-house design studio and a team of designers, who in turn get continuous inputs on latest international trends from designers based in Italy and the UK.

Khaki


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Attention please. The many virtues of Arvind Khaki merit your undivided attention: An annual capacity of 21 million meters which facilitates the launch of two new collections annually; and the distinction of being the only khakis division in South East Asia to do so.

The division provides the finest fabrics in the variants of 100% Cotton, Cotton Rich Polyester Blend, Cotton Lycra, Cotton Tencel, Cotton Linen, etc to name a few. The division has an integrated plant with weaving and processing facilities. The most prominent products in this range include Chinos, Canvas, Ribstop, HBT, Tussore, Cavalry, Structures and Dobbies. It’s easy to see why the most discerning customers flock here: The exalted list includes GAP, J Crew, Polo Ralph Lauren, Abercrombie & Fitch, Banana Republic, Ann Taylor, Liz Clairborne,(US), Marks and Spencer, Pull & Bear, Benetton, Grotto Gas, Diesel, Debenhams, (UK), Madura Garments, and Color Plus (India).

To satisfy such quality conscious customers, the khaki division has a testing and Quality Control Laboratory, and a Product Development Cell, which not only undertakes value-engineering of the existing products but is also involved in creating new weaves, blends and dyeing and processing techniques. The plants are certified by OEKO TEX, Lycra, Teflon. Laboratory accredited by Marks and Spencers, Next, Dupont, Levi’s, INVISTA.

Knits


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Arvind’s knits department has an annual knitting capacity of 10,000 tons. Apart from the basic knitting capabilities (jersey, pique, rib, and interlock), Arvind has mastered specialty knitting techniques such as yarn-dyed autostripers, jacquards, and stretch fabric. The knits vertical has a fabric dyeing capacity of 6500 tons per annum and yarn dyeing capacity of 3500 tons per annum. It has the ability to process both tubular and open-width fabric and offer specialty finishes like mercerization, singing and various forms of brushing and peaching. The department also boasts of a state-of- the art print shop equipped with fully automatic placement printing capabilities.

Voiles

Arvind is the uncontested market-leader in the manufacture of voiles, with a production capacity of 33 million meters per annum. Arvind’s voiles are primarily used as blouse material and are sold in the domestic market through an impressive network of 150 dealers, reaching over 5000 retail outlets throughout India. High quality Swiss voiles are exported to Switzerland, Sri Lanka and countries in the Middle East.


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Accreditations

Arvind Knits Division has the distinction of being the only nominated supplier of INVISTA (DuPont) Specialty Lycra® Fabrics in the Indian Subcontinent. INVISTA has entrusted Arvind Knits as the only INVISTA accredited Readymade Garment Vendor (RGV) source for Lycra® based garments in India. Arvind KBD has tied up with International Fiber Companies like Celanese (for Acetate), Lenzing (for Modal), Courtaulds (for Tencel®) and Wellman who have approved Arvind knits as a Vendor for fabrics made from their fiber. Arvind KBD is a nominated supplier of fabrics to Nike Golf, Marks & Spencer, Arnold Palmer, Eddie Bauer, Calvin Klein and Columbia Sportswear.

Labs accredited by:

Marks & Spencer

Target

Invista (DuPont)

ISO 9001:2000 from BVQI

ISO 14001

Oeko-Tex-100 from Shirley Tec

Certified Supplier for GAP

Lycra Assured Partners of Du Pont

Labs accredited by:

Marks & Spencer


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Levis-Strauss & Co.

NEXT

INVISTA

Labs accredited by:

Marks & Spencer

Levis-Strauss & Co.

NEXT

INVISTA

Labs accredited by:

Mark & Spencers

NEXT

Levis-Strauss & Co.

INVISTA


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MANUFACTURING PROCESS

There are five Steps to manufacture the product :-

Raw material cotton Blowroom & Carding1) Spining

a) Blow roomb) Cardingc) Drowframe

2) Ball-Warping3) Rope dying4) Rebeamer5) Viving

1. Spining:- This is the first steps of manufacturing the product.

a) Blowroom:- In this steps cleaning the cotton and mixing of different types of cotton takes places. This is the the first stage of cleaning of raw material. The cotton mostly purched from maharastra and gujarat.

b) Carding:- in this steps the remaining impurities which are left from blowroom process cleaned up in this step. it is fiber individualizer process. And it is convert in to sliver form.

c) Drowframe:-the third steps is the parallelization of fiber which transfer from the carding process. And clean all impurities which are left from second process.After these process the actual process of spinning comes through that is First is the roter spinning and second is ring spinning and third is airjet spnning Thise machine are automatic machine Note: Spinning department working as converting the cotton into yan and final product of spinning is Yan


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Yan

2) Ball-Warping:- The second steps is the ball-warping. In this process the raw material(YAN) convert in to a ball. In the one ball spare capacity 444 yan. And also spare same quantity in the stock. Actually it convert 444 yan in to one ball.The capacity of yan is depend on the product. There is red signal indications shows where the yan is broken up while converting the ball. And the machine stop the process.One machine production capacity is 2.4 lack meter in a day.

Ball warping Machine

3) Rope Dying:- The rope dying is the third steps in this steps coloring yan into different color according to requirement. There are 100 ball in it. And among 50 ball coloring in at a time and 50 ball are use in spare requirement. and production capacity is 1.1 lack meter per day. And this machine minimum requirement is 800 meter length.And it is exit in machine processing. And this machine contains 19 chemical tank


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The first tank is preventing. it removes impurity with chemical and Tank no II, III, IV are washing the yan at hot(Pre-wash) at 50-60 deg. Tempture.and V and VI work only for black color to yan and further VII to XIV work dying zone. The capacity of one tank 7200 litter.XV is washing the coloring yan by detergent and which is not a pure fixation of indigo.It working as a wash color fixation.XVI, XVII, XVII are post was yan to 50- 60 degree temp. and last one XIX is softener.Note:- there are 48 cylinder in dying machine for the purpose of drying the yan.And matching the color according to requirement and it process called hunter lab.It shows reading in every one minute in hunter lab.

ROPE DYING MACHINE

4) REBEAMER:- the fourth steps is rebeamer. It convert yan in to sheet from it also the same puporse to open the ball. It another name is long chain bebeamer. ther are 12 machine working in this process. The one machine production capacity 96000 per day.It is the final product been from


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Rebemer process

6) Sizing machine :- the forth steps is sizing. Its main purpose is to improve the strength of yan. Stach process applied at 90 degree tepm. And its separate the yan individually. Note:- name machine is sucker muller sizing machine. The speed of machine is 50 to 60 meter per minute.

5) Viving process:- the viving process is the last one process in this process the yan is convert in to final product.


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MARKETING POSITION Arvind Products Limited is an India-based company. The Company is engaged in the business of manufacturing, trading and dealing in textiles. The Company manufactures and markets voiles fabric, bottom weights fabric and yarn. Its products include cotton yarn, dyed voiles and cotton fabric. The Company is a subsidiary company of Arvind Limited. As of March 31, 2010, the Company had four plants: three in Gujarat and one in Maharashtra. During fiscal year ended March 31, 2010, the Company had a production of 45.861 million meters of cloth, 1.909 million kilograms of yarn and 0.367 million meters of grey cloth. As of March 31, 2010, the Company had an installed capacity of 97,712 of spindles and rotors; 1,944 of rotors, and 337 of looms.


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FINANCE ICAL STATUS Arvind Mills is acclaimed in the Indian corporate field for its financial skills. Be it the phase of rapid growth or downturn; the company has demonstrated swift, sharp and robust financial acumen to navigate the Company through different phases of economic cycles. Arvind Mills was the first Textile Company from India to issue GDRs in the year 1992-93. Highly complex financial restructuring exercise involving more than 80 domestic and international lenders which the Company implemented following the major downturn in the business cycle during year 2000-2002 is considered to be the benchmark for the Indian corporate. Arvind Mills has been making judicious choice of fund-raising avenues in the domestic as well as international markets so as to construct very efficient capital structure, which is in the tune with operating risks and enhances the shareholders’ value.

The Company has laid down the Risk Management policy to manage the financial risks emerging out of currency and interest rate risks. It runs an active treasury desk so as to make use of modern hedging tools available to manage financial risks.

Arvind Mills was the first Textile Company in India to implement ERP, SAP as back as in the year 1997-98. The company follows best accounting practices to prepare its financial statements as envisaged in the Indian and international accounting standards.

MATERIALS ARREGEMENT Yarn, dyes, chemicals and spare-parts are forming part of other materials (other than Cotton) in the process of manufacturing. Arvind Mills has policy to make global sourcing so as to optimize quality and cost of these inputs. The company has stringent quality standards and has well equipped testing facilities to ensure adherence to these standards for inward-materials. While procuring the dyes and chemicals it also ensures that internationally accepted Eco-norms are met with. Arvind Mills deals with internationally renowned names.

The material sourcing team employed by Arvind Mills is consisting of mix of engineering as well as commercial skills so as to ensure that both quality and costs are optimized. This team in cooperation with manufacturing team continuously works on product and vendor developments. Arvind Mills follows the Purchase Policy and


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Standard Operating Procedures laid down by one of the large international advisory firms, in the materials management function.

Arvind Limited brand

Arvind Brands (owned) o Flying Machineo Newporto Ruf & Tufo Excalibur

Arvind Brands (licensed) o Arrowo Leeo Wranglero Gant U.S.A.o Sansabelto Izodo Cherokee


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INDUSTRIAL REPORT

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