Arvind (company)

Arvind Limited
Public (NSE, BSE: 500101)
Industry Conglomerate
Founded 1931
Headquarters Ahmedabad, India
Key people
 Sanjay Lalbhai (Chairman and Managing Director), Punit Lalbhai (Executive Director), Kulin Lalbhai (Executive Director),
Products Denim, knits, woven, engineering, retail, telecom, advanced material, agribusiness, real estate, the Arvind Store
Revenue ₹5,407.26 crore (US$750 million) (2016)[1]
₹318.85 crore (US$44 million) (2016)
Number of employees
 25,620[2]
Parent Lalbhai Group
Website www.arvind.com

Arvind Limited (formerly Arvind Mills) is a textile manufacturer and the flagship company of the Lalbhai Group. Its headquarters is in Naroda, Ahmedabad, Gujarat, India. It has units at Santej (near Kalol). It manufactures cotton shirting, denim, knits and bottomweight (khaki) fabrics. It has also recently ventured into technical textiles when it started Advanced Materials Division in 2011. It is India's largest denim manufacturer[3] apart from being the world’s fourth-largest producer and exporter of denim.

Sanjaybhai Lalbhai is the Chairman and Managing Director of Arvind and Lalbhai Group. In the early 1980s, he led the 'Reno-vision' whereby the company brought denim into the domestic market, thus starting the jeans revolution in India.[4] Today it retails its own brands like Flying Machine, Newport and Excalibur and licensed international brands like Arrow, Tommy Hilfiger, through its nationwide retail network. Arvind also runs three clothing and accessories retail chains, the Arvind Store, Unlimited and Megamart, which stocks company brands.[5][6]

Arvind Mills

History and operations

Kasturbhai Lalbhai, the co-founder
Shri Sanjay Lalbhai, the Chairman and Managing Director of Arvind Limited
  • 1897 – Arvind Mills starts business for sarees
  • 1931 – Arvind Mills Ltd was incorporated with share capital ₹165,000 ($2500) in Ahmedabad. The products manufactured were dhoties, sarees, mulls, dorias, crepes, shirtings, lingerie, coatings, printed lawns and voiles cambrics, twills and gaberdine.
  • 1987 – The company took up a modernisation programme to triple the production of denim cloth and to produce double yarn fabrics for exports. The new product groups identified were the indigo dyed blue denim, high quality two-ply fabrics for exports, and products such as butta sarees, full voils and dhoties.
  • 1991 – Arvind reached 100 million meters of denim per year, becoming the fourth largest producer of denim in the world.
  • 1992 – The company increased its production of denim cloth by 23,000 tonnes per day by modernising the plant at Khatraj of Ankur Textiles.
  • 1994 – The company's operations were divided into textile, telecom and garments divisions.
  • 1995 – The garment division launched ready to stitch jeans pack under the brand Ruf & Tuf.
  • 1997 – The marketing and distribution network of the Newport brand was strengthened and the relaunched Flying Machine and Ruggers brand were strengthened.
    • Arvind Mills set up an anti-piracy cell for the first time in India to curb large scale counterfeiting of their brands Ruf & Tuf and Newport jeans.
    • Arvind Mills adopted the franchisee system for the manufacture and distribution of Ruf & Tuf jeans.
    • Arvind Fashions doubled its capacity in the manufacturing facility in Bangalore to produce Lee jeans.
  • 1998 – Arvind Mills emerged as the world's third largest manufacturer of denim.
    • Arvind Mills went live with SAP R/3 ERP package in April 1997 in their new manufacturing units.
  • 2003 – For the fourth quarter, Arvind Mills saw a 280% growth in net profit.
    • Arvind Mills Ltd was assigned a "P1+" rating by CRISIL, which indicated a very strong rating for their commercial paper.
  • 2005 – For the fourth quarter in a row, Arvind Mills posted a profit growth in excess of 80%.
    • Arvind Mills bought entire stake in Arvind Brands from ICICI Ventures.
  • 2007 – Arvind expanded its presence in the brands and retail segment by establishing MegaMart, one of India's largest value retail chains.
  • 2010 – Arvind launched the Arvind Store, a concept putting the company's best fabrics, brands and bespoke styling and tailoring solutions under one roof.
    • Arvind launched its first major real estate projects.
    • Arvind became one of India's largest producers of fire protection fabrics.
  • 2012 – joint venture with PD Group, Germany, for manufacture of glass fabrics
  • 2014 – joint venture with PVH Corp for Calvin Klein Businesses in India
    • Launched formal suits with Goodhill Corporation Limited of Japan
  • 2014 – joint venture with OG Corp, Japan, for manufacture and sale of non-woven fabrics, the project being spearheaded by Dr. Kunal Shah
  • 2014 – forayed into the E-commerce segment with custom clothing brand Creyate[7]
  • 2015 - The company published its maiden Sustainability Report
  • 2016 – The company completely entered online retailing with nnnow.com [8]
  • 2016 - GAP joins hands with Arvind to sell apparels through NNNow.com.[9]

Businesses

Financial restructuring

In the mid-1990s, the company undertook a massive expansion of its denim capacity even though other cotton fabrics were slowly replacing the demand for denim. The expansion plan was funded by loans from both Indian and overseas financial institutions. With the demand for denim slowing, the company found it difficult to repay the loans, resulting in an increased interest burden on the loans. In the late 1990s, the company encountered financial problems due of its debt burden, resulting in incurring significant losses.[10]

The company came up with a debt-restructuring plan for the long-term debts being taken up in February 2001. This complex financial restructuring exercise, which involved several domestic and international lenders, is considered to be the benchmark and a case study in India. The restructuring was overseen by Jayesh Shah, CFO, and advised on by a JP Morgan Hong Kong team, led by Ahmad Ayaz.

See also

References

  1. ↑ http://www.bseindia.com/stock-share-price/stockreach_financials.aspx?scripcode=500101&expandable=0. Missing or empty |title= (help)
  2. ↑ "Arvind Limited". arvind.com. Retrieved 20 May 2015.
  3. ↑ "Arvind Mills to issue warrants to promoters". Reuters. 28 Sep 2007.
  4. ↑ "Working Lives India: Denim king". BBC News. Retrieved 20 May 2015.
  5. ↑ "Arvind Mills lines up Rs 850 cr expansion plan over 5 years". Business Line. 26 October 2010.
  6. ↑ "RIL eyes Arvind Mills' manufacturing facilities". The Economic Times. 27 Oct 2007.
  7. ↑ "Arvind Forays Into E-Commerce". Bloomberg TV India.
  8. ↑ Pani, Priyanka (2016-05-26). "Arvind to digitise its textile stores". The Hindu Business Line. Retrieved 2016-06-13.
  9. ↑ "GAP joins hands with Arvind to sell apparels through NNNow.com". The Hindu Business Line. 11 October 2016. Retrieved 10 May 2018.
  10. ↑ "Arvind Mills: From near bankruptcy to reinvention". The Times Of India. 14 December 2012.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.