Strategy management by Arvind mills

Strategic Managementon

Arvind Mills

By,

Ajay |Ayushi |Abhinaya |Deepak |Manish |Hari

Law 1Cost & 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 2Competitive 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

211.8 229 296.9 337

600800

10001100

0

500

1000

1500

2000

2011 2012 2013 2014

Shirting Market Gaining

Raymond Arvind

143.7 185.6314.1

419.1

526 458460

504

0

200

400

600

800

1000

2011 2012 2013 2014

Garmenting

Raymond Arvind Mills

642.7807.1 850.4 955.3

800

11001400

1600

0

500

1000

1500

2000

2500

3000

2011 2012 2013 2014

Denim

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 3Customers & Profit pools don’t stand still

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 faced

Hike in exise to 8%

Hike in exise to 8%

Distribution hurdle

----

Retailer own outlet own outlet Big Bazaar

Brand ambassador

AbhishekBachchan

Saif Ali Khan Akshay kumar ----

Tag Line Who Needs Phoren?

The Measure of Success

---- ----

Attractive Customer Segment

International Brands

Arrow Lee Wrangler Tommy Hilfiger

Licensed Cluett, peabody & co., USA

VF corporation VF corporation JV with Murjani group

Age group 27-35 4-14 & 17-25 17-25 &25-40 18 & Above

specifics Four sub brand•Classic•Premium•Urban•Sports

Adjudged the images fashion award “most admired Jeanswear” brand

•Fashion conscious•Love wearing denim on weekend•Retail ambience was given importance

Introduced men’s sportswear, men’s Jeanswear, junior Jeanswear

Customer Loyalty Program (Megamart)

Law 4Simplicity gets resultsValue Chain In The Textile Industry

12

PRODUCTION PLANNING AT Arvind MillsNot ApprovedBuyer

requirements DesignGoes to the

customer for approval

Marketing dept. generates sale

order with delivery date

Planning of raw materials

Planning of workRouting and schedulingQuality Control

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 .