chapter - iii - shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/4859/11/11_chapter 3.pdf ·...
TRANSCRIPT
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CHAPTER - III
PROFILE OF THE STUDY UNITS
ARAVIND MILLS
The Aravind Mills was set up with the pioneering effort of the Lalbhai
brothers in 1931. With the best of technology and business acumen, Aravind has
become a true Indian multinational, having chosen to invest strategically, where
demand has been high and quality required has been superlative. Today, The
Aravind Mills Limited is the flagship company of Rs.20 billion (US$ 500 million)
Lalbhai Group.
Aravind 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.
Forevision and Technology has brought Aravind to be one of the top three
producers of Denim in the world, and on its way becoming the Global Textile
Conglomerate. Aravind 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.
The Evolution
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
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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 Aravind
Mills was born.
Aravind 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 Aravind
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, Aravind 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 Aravind at its highest level of profitability. There could be no better
time, concluded the Management, for a rethink on strategy. The Aravind
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
Aravind’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 Aravind entered the export market
for two sections. Denim for leisure and fashion wear and high quality fabric for
cotton shirting’s and trousers. By 1991 Aravind reached 1600 million meters of
Denim per year and it was the third largest producer of denim in the world.
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In 1997 Aravind set up a state-of-the-art shirting, gabardine and knits
facility, the largest of its kind in India, at Santej. With Aravind’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.
Aravind 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, Aravind 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.
PHILOSOPHY
WE BELIEVE
In people and their unlimited potential. In content and focus in problem
solving. In teams for effective performance. In intellect & its power.
WE ENDEAVOUR
To 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 DREAM
Of excellence in all endeavours. Of mutual benefit and prosperity. Of
making the world a better place to live in. We Make Things Happen.
At Aravind, it is firmly believed that a successful company must play an
active role in the development of the society from which it springs. Besides
pursuing its business goals, it should also be responsible corporate citizen. It is
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because of these beliefs that Aravind is always on the forefront of extending a
helping hand for the needy, downtrodden and for the society at large.
Aravind has always been actively involved in the educational institution,
hospitals and research institutions of Ahmedabad, its hometown. It co-pioneered
the world renowned Indian Institute of Management, Ahmedabad (IIMA), and
helped set up the Ahmedabad Textile Industry Research Association (ATIRA), and
The Kasturbhai Lalbhai Textile Training Center to develop and enhance the skills
of textile workers.
The Lalbhais – a Historical Perspective
The Lalbhais are descendents of Seth Shantidas (c.1590-1659), a famous
jeweler, financier and businessman of the seventeenth century. Shantidas is known
to have even financed the mighty moghul empire and was the first to be conferred
with the title of Nagarsheth. Khushalchand (1680-1748) grandson of Shantidas had
saved the city of Ahmedabad from the marauding Maratha army in 1725 by paying
a ransom of Rs. 5 Lakh on behalf of the whole city.
The current surname is derived from Lalbhai Dalpatbhai the great grandson
of Himabhai (1785-1858) son of Khushalchand. Lalbhai was born around the time
when the first textile factory in the city went into production. The first
manufacturing company of the Lalbhai family Saraspur Manufacturing Company
was established in 1897 which was into producing cotton yarn. During the
intensifying Swadeshi movement the second company Raipur Mills was
established in 1905. Due to untimely death Lalbhai Dalpatbhai the reins of his
businesses were handed over to his young sons including a seventeen year old
Kasturbhai Lalbhai. Kasturbhai is widely acknowledged to be the father of modern
Indian textile industry. Kasturbhai started the first large scale textile mill under the
name of Asoka Mills in 1920 with a capital of Rs.12 Lakh at a time when the
largest mills in the region were built with not more than Rs. 5 Lakh. 1930-31 saw
the resurgence of second Swadeshi movement coinciding with the great
depression. While different entrepreneurs reacted to the situation differently
Kasturbhai saw this as the decade of prosperity and growth and established the
flagship Aravind Limited in 1931 with an authorized capital of Rs. 25.25 Lakh.
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Kasturbhai had also floated mills for families of his three sisters under the name of
Aruna Mills in 1928 and Nutan Mills in 1931.
With the expansion Kasturbhai came to occupy the position of the biggest
textile magnate in the country. Few groups could claim to have made such great
strides during one of the worst periods in India’s industrial history. After
continuously successful period of four decades in the pre-independence era, the
group entered into other fields such as dyes, pharmaceuticals, chemicals, etc. The
first diversification started in 1939 with Anil Starch Limited. Atul Products
Limited was established in 1952 for manufacturing textile and other dyestuff. In
the same campus as Atul existed the joint ventures with Ciba-Geigy called Cibatul,
with American Cynamid called Cynamid of India and with ICI of UK called Atic
Industries and as the time progressed the JV partners separated amicably and these
companies exist in India today as full representatives of these global giants.
The group took over the then sick company Ahmedabad Laxmi Cotton
Mills Co. Ltd. and merged with Aravind Limited and the unit was renamed as
Ankur Textiles. The unit currently under Aravind Products Limited is today the
country largest organized player in the voiles market. The group also invested in
Anup Engineering Limited engaged in fabrication and set up Amol Dicalite in
collaboration with General Refractories Limited, U.S.A for manufacturing filter
aids and perlite products.
Apart from the field of business the Lalbhais over generations have
contributed to education, social and religious causes. Lalbhais contribution to
education starting from Gujarat Vernacular Society in late 1800’s to formation of
Ahmedabad Education Society, Physical Research Laboratory, ATIRA and the
famed IIM Ahmedabad are just to name a few. Today Shrenik Lalbhai heads the
Sheth Anandji Kalyanji Trust involved in propagating and maintaining Jain
temples in western India a post he inherited from Kasturbhai Lalbhai. Mr. Sanjay
Lalbhai is genuinely committed to the societal causes and is spearheading these
initiatives under the aegis of Sharda trust.
One of the important factors which built up the Group was the close
relationship of mutual trust between the three brothers – Chimanbhai, Kasturbhai
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and Narottambhai. Despite Kasturbhai having emerged as the patriarch of the
group, there was satisfactory distribution of property and managing powers with
the members of the family. The management of the companies was distributed
between family members who consulted each other under the leader Kasturbhai.
Siddharthbhai the eldest son of Kasturbhai managed Atul Products, while his
younger son Shrenikbhai looked after the management of Anil Starch.
Chimanbhai’s family branch managed Raipur and Saraspur Mills while
Narottambhai’s younger son, Niranjanbhai devoted his time in technical function
of Aravind Limited and his elder son Aravindbhai managed both, Aravind and
Asoka Mills.
After Kasturbhai’s death, Aravindbhai son of his brother Narottambhai
assumed the leadership of the Group. The process of expansion and the initiative
of restructuring of the Group however was led by the third generation of Lalbhais
under Sanjay and Sunil, grandsons of legendary Kasturbhai Lalbhai. The major
contribution of Sanjay Lalbhai has been that of overall transformation of the Group
culture by induction of highly skilled and qualified professional managers.
Today Sanjay Lalbhai is the Chairman of the Group and leads Aravind
Limited and Sunil Lalbhai managing the dyes and chemicals business under the
Atul Products Limited banner. The current estimated group turnover is over Rs.
2500 Crore.
The Narottambhai Lalbhai Rural Development Fund and The Lalbhai
Group Rural Development Fund where founded to undertake special programs for
the economically deprived. It also assists the nearby villages, through nutritional
programs, food camps and the harnessing of solar energy.
The Narottambhai Lalbhai Rural Development Fund and The Lalbhai
Group Rural Development Fund where founded to undertake special programs for
the economically deprived. It also assists the nearby villages, through nutritional
programs, food camps and the harnessing of solar energy.
SHARDA Trust
At Aravind, we believe in repaying to society in our own little way through
a social arm of ours – Sharda Trust
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Established in 1995 with the support of Aravind Mills, “Strategic Help
Alliance for Relief to Distressed Areas” (SHARDA), its purpose is to help the
urban poor in improving their quality of life. The Trust has based its strategy on
the premise that a family has five basic needs, listed below and ranked according
to their priority. These are:
Basic physical infrastructure for clean potable water at the door steps in
adequate quantity at convenient hours, individual toilets and hygienic
surroundings.
Primary health-care.
Access to high quality secondary and tertiary health care.
Reading, writing and arithmetic skills (3Rs) for all.
Skill and ability to compete in today’s environment.
SHARDA Trust joined hands with the Ahmedabad Municipal Corporation
to upgrade the physical environment and living conditions in a slum pocket called
“Sanjay Nagar.” The Municipal Corporation assigned the task of implementation
to this Trust, which completed the project within time and budget. So innovative
was the Trust's approach, that on 7 August 1998, the United Nations Centre for
Human Settlement (UNCHS) included the Sanjay Nagar project in its "100 Best
Practices Global List".
Subsequently, the Trust has taken several initiatives like providing
secondary and tertiary healthcare to the urban poor through networking with
prominent hospitals in the city. About eight hundred patients have benefited and
approximately Rs.13 lakh have been spent on this activity.
The Trust collaborated with the National Institute of Fashion Technology
(NIFT), Gandhinagar, and helped the urban poor to train in the area of sewing
machine operation. The Trust also organized placement activity with the local
garment manufacturers and has so far trained and placed over 300 persons in
Ahmedabad.
Spoken English and basic mathematics for the youth belonging to poor
families and providing them with computer skills is the other activity that the Trust
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has undertaken in collaboration with the Chandraprasad Desai Memorial
Foundation. The Trust is poised for a rapid expansion in all its projects.
Aravind & Environment
A) Environmental Policy
Aravind Mills commits itself to continually improve our environmental
management. It strives to go beyond the requirements of the applicable
environmental laws & other regulations through:
Optimizing usage of cotton, energy, chemicals & water.
Adopting preventive strategies to reduce the generation of effluents,
waste & air emissions.
Maximizing the recycling of inevitable wastes.
Encouraging suppliers & buyers to become environmentally responsible.
Maintaining a safe working environment.
Increasing the green cover.
Training employees on environmental issues.
B) Effluent Treatment Facilities
All the production / processing units are provided with adequate wastewater
/ water treatment facilities, to meet the requirements of regulating authorities as
well as our reputed customers like Levis, Nike etc.
Aravind Mills at Santej has one of the largest effluent recycle plants in Asia
with recycling capacity 10,500 m3/day. The latest & best of the technologies
available in water / wastewater treatments can be seen in operation in this plant.
The Aravind International (division) has Effluent recycling facilities comprising
Chemical, Biological & tertiary treatment and it is of 800-m3/day capacity. The
plant also has ISO 9000 & ISO 14000 certification. Aravind Mills @ the main site
at Naroda also possess chemical, biological treatment facilities to treat 10000
m3/day of effluents to meet the pollution control board norms.
Ankur Mills (division) has Effluent treatment plant of 1600-m3/day
capacity with chemical & biological treatment facility to achieve the pollution
board norms. Aravind Mills (Garment exports division) is setting up a new
garment unit at Mysore road, Bangalore, along with Effluent treatment plant of
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1450 m3 /day capacity. This plant also possesses chemical, biological & tertiary
treatment facilities to achieve the State Pollution Control Board norms. The
uniqueness of this plant is – all it’s process water requirements will be attained
through recycled sewage water of Bangalore City.
C) Air pollution Control
Aravind Mills has switched from liquid fuel to Natural gas for all their
heating & steam requirements in order to avoid the air pollution.
D) Solid waste Management
All the units believe in waste minimization measures. All the ETP plants are
provided with adequate sludge Dewatering facilities. Units at Santej, Naroda,
Aravind International & the upcoming Bangalore unit are provided with Decanter
Centrifuges for sludge de-watering. De-watered sludge is dried in solar
evaporation pans for further volume reduction. Waste oil generated in all the units
is recycled. Polythene liners, Discarded containers are disposed off to the
respective buyers.
E) Afforestation & Rain water Harvesting
Units at Khatrej & Santej have very good afforestation & green belts. The
Santej unit has more than 1 lakh trees & other shrubbery. Plants like Jetropha
(seeds used for Biodiesel generation) are grown extensively. ETP treated water is
used for this plantation so as to minimize raw water consumption. Beautiful lawns
with Fountains are part of the landscape.
At the Santej unit ground water recharging facility is also developed where
in yearly about 40 MLD rain water is recharged in to ground water table. Two
recharge ponds with a capacity of about 4000 m3 are made & Rainwater during the
monsoon is collected in these ponds & recharged in to Ground water table.
Acquisitions for Growth
1931
Aravind Limited is set up by three brothers Kasturbhai, Narottambhai and
Chimanbhai Lalbhai with a share capital of Rs.2,525,000 (US$55,000) backed by
state-of-the-art technology, with the aim to produce high-end superfine fabric.
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1934
With sales reaching Rs.45.76 Lakhs, and a profit of almost Rs.3 Lakhs,
Aravind establishes itself amongst the foremost textile units in the country.
1986
An uninterrupted record of not missing out on paying dividend to its
shareholders.
An established leader in fine & superfine cotton fabrics for Indian
market.
1986
Renovision: First company to bring globally accepted fabrics Denim, yarn
dyed shirting fabrics & wrinkle free gaberdines to India.
1987
The largest zero discharge green ETP facility in India.
Commitment to greener world
1987
First company to bring International shirt brand “Arrow” to India
First company to start dedicated “retail” outlets for Arrow brand.
Awarded various awards for Highest exports and ISO
1989
Largest Denim & shirting in South Asia.
3rd Largest senior capacity in the world
1997
First Indian company to verticalise the cotton textile business from cotton
fields to apparel retailing.
1997-1998
First company to introduce ERP SAP business solution
2008
First company to launch a pan Indian apparel outlet stores “Megamart”
Largest portfolio of International brands: Lee, Wrangler, Nautica, Jansport,
Kipling, Tommy, Arrow, US Polo, Izod, Pierre Cardin, Palm Beach, Cherokee,
hart Schaffner Marx
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Brand Portfolio
The extensive brand portfolio includes marques across varied demographics
and geographics. A partial list includes:
Flying Machineb Excalibur Newport University Ruf&Tuf Arrow Megamart
HartSchaff nermarxIzod GantPierrecardin USPA Sanabelt Cherokee
RAYMOND TEXTILES
The Raymond Group was incorporated in 1925; and within a span of a few
years, transformed from being an Indian textile major to being a global
conglomerate. Raymond is the leading, integrated producer of worsted suiting
fabric in the world, with a capacity of producing 33 million meters of wool &
wool-blended fabrics. A pioneer in the textile and men’s apparel business, in India,
with a turnover of over USD 600 million, the Raymond Group is horizontally and
vertically integrated and offers end-to end solutions for fabrics and garmenting.
The Group has six, state-of -the art textile plants and four garmenting factories, in
India and Europe, supported by world-class design studios in India and Italy.
Raymond has always focused on innovation and technological up gradation,
that has yielded path breaking fabric solutions to customers around the world.
From pure wool to wool blended with exotic fibers like Cashmere, Mohair or
Angora and Casein or the ultimate in fine pure wool – Super 230s crafted out of
11.8 micron wool, Raymond has always provided customers with world-class
products. The company exports its suiting fabric to more than 55 countries,
including USA, Canada, Europe, Japan and the Middle East.
The Raymond Group has already marked its presence in the global arena
with partnerships with leading European manufacturers of carded woollens, fine
shirting fabrics and specialty denim. In addition, the Group has business interests
in readymade garments, designer wear, cosmetics & toiletries, engineering files
and tools, prophylactics and air charter operations.
Moving up the value chain – One stop Shop
Fabric Worsted
Pure wool, Polywool blended fabric
33 million metres
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3 integrated plants in India Denim
Specialty and colour denim
80 million metres
Manufacturing in 3 continents – US, Europe and Asia
JV with UCO NV Shirting
100% fine cotton and linen fabric
10.5 million metres
JV with Gruppo Zambaiti Carded Woollen
Outerwear fabric,Carded woolen shawls, Blankets
2.5 million metres
JV with Lanificio Fedora Garmenting Tailored Clothing
Fine tailored formal suits, jackets and trousers
450,000 suits, jackets and 2.4 million trousers Annually Jeans wear
High fashion jeans wear
Capacity of 3 million pairs of jeans per year Dress Shirts
Formal Dress Shirts
Capacity of 3000 shirts per day
Technical collaboration with Flex, Japan
Our Design Studio in the fashion capital of the world –Milan, Italy in
partnership with Gruppo Zambaiti provides our customers with cutting edge design
and style. The studio has the finest designers for textiles, denim, jeans wear and
fine tailoring clothing.
Worsted Suiting Raymond, with an installed capacity of 33 million meters
of wool & wool-blended fabrics, is the leading integrated producer of worsted
suiting fabric in the world. It has four plants located in the states of Maharashtra,
Gujarat and Madhya Pradesh. The company exports its suiting fabric to more than
55 countries including USA, Canada, Europe, Japan and the Middle East.
Raymond, an innovator in the Indian textile industry, has developed a heritage of
in-house skills for research & development. This has resulted in path-breaking
developments of new products, which are today the corner stones of the worsted
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suiting industry in India. The Group has mastered the craft of producing suiting
using, wool from 80s to 230s count, blends with superfine polyester and other
specialty fibers, like Cashmere, Angora, Alpaca, Silk, Linen etc.
Denim
Raymond has entered into a 50:50 JV with UCO NV of Belgium, a leading
manufacturer of specialty denim to form a global denim company that combines
the denim businesses of Raymond and UCO. The JV Company, Raymond UCO
Denim, having it’s company executive headquarters in Belgium, is manufacturing
and marketing, specialty denim fabrics. The JV has a combined capacity of 80
million meters, per annum, with manufacturing facilities spread across three
continents – the US, Europe and Asia, as well as a vast global marketing network.
Shirting
Raymond in partnership with Gruppo Zambaiti, one of the top three Italian
high fashion cotton textile majors in the world, has set up a Greenfield facility for
the manufacture of fine cotton shirting fabric. The joint venture company,
Raymond Zambaiti Ltd, combines Raymond’s expertise in textile business, low
cost production, technology and distribution with Italian strengths of creativity,
style, production know-how, quality finishing and lead times.
Fabric
The product range includes a wide range of fabrics and finishing, including,
cotton apparel fabrics and high-end cotton suiting fabric, produced at the newly set
up state-of-the-art vertically integrated plant in India.
This facility caters to the international markets at the middle to the upper
end brands and offers custom designed shirting products to the discerning
international customers, which includes leading brands and retailers.
Tailored Clothing
Situated 40 kms from Bangalore is Silverspark, our facility that turns out
world class, suits, jackets and trousers. This modern plant spread over 2000 sq ft
built up area has the capacity to produce 450,000 suits, jackets and 2.4 million
trousers annually, a significant addition to our existing capacities at Thane near
Mumbai. Set up at an investment of US$ 10 million this plant boasts of modern
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manufacturing facilities on par with the best on the world. ‘Siro Set’ is another
specialty that the plant has to offer.
The factory is equipped with computerized presses in line and drying
chambers to ensure consistency in the product. This technology developed and
perfected in Japan is designed to impart a permanent finish to jacket seams and
tailored crease on trousers made from pure wool fabrics. The combination of
world-class machines and work environment maximize productivity, quality and
worker safety.
Jeanswear
A forward integration to Raymond’s specialty Denim plant is EverBlue, a
top of the line manufacturing facility for jeanswear, near Bangalore. This facility
has a capacity to turn out 3 million garments per annum with integrated garment
design, sewing and washing operations. The plant boasts a high degree of
automation right from computerized Gerber spreader and cutter to laser patterning
and finishing.
The stitching facility incorporates several automatic sewing workstations
for consistency of work execution, sate of the art over locking and zipper
attachments. The finishing unit consists of scraping spray booths, sand blasting and
laser patterning to create special effects on jeans wear. An in house CPC controlled
laundry is the best such facility in India for washing and dyeing obtained from
Europe. This ensures a wide variety of finishes to meet global tastes.
Manufacturing is supported by an in house design studio and sample unit to create
new styles and samples. Dedicated sample washing machines ensure quick
turnaround of samples.
Dress Shirts
A spanking new unit - Celebrations has been set up in the technical
collaboration with Flex, one of the largest dress shirt manufacturers in Japan. With
100,000 sq ft of built up space, it incorporates the latest factory design principles
for employee comfort and productivity. The current production capacity is over
1 - milllion shirts per year. Specialized machinery imported from renowned
manufacturers in from USA, Germany and Japan comprise of automated spreading
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and cutting with an inbuilt system for matching checks and stripes. The layout of
the manufacturing line has sufficient flexibility to adapt to smaller runs and style
changes. This flexibility permits manufacture of both fused and non-fused collars
and cuffs as per customer requirements. Shirts made in this plant have been well
appreciated by many as being on par with the best in the world.
The Raymond Group today is poised to become a global player, integrated
across various categories like worsted suiting, denim, shirting etc. The Group has
achieved this through partnerships with companies that are the best in the world in
their business. Raymond has entered into a JV with Gruppo Zambaiti, Italy’s
leading manufacturer of shirting fabric, Lanificio Fedora, one of the largest
manufacturers of carded woolen fabric in the world. Our JV with UCO is a merger
of equals that will create a global denim major with transcontinental manufacturing
in US, Europe and Asia along with a combined capacity of 80 million metres. This
JV with UCO will create synergies in sourcing, manufacturing and marketing. All
our JVs have resulted in a unique combination of synergies in manufacturing,
marketing, technology, sourcing etc. and will reap tremendous mutual benefits in
the years to come.
Raymond Ltd. has announced a 50:50 joint venture with Grotto S.p.A, one
of the most important Italian fashion companies. The joint venture recently
launched the highly successful 'GAS' brand in India. With a total investment of
approximately Rs. 500 million, this joint venture brings together Grotto S.p.A's
proven expertise in design and managing a successful brand and Raymond Ltd's
expertise in apparel brand building and retailing and its vast distribution network
to give Indian consumers a new fashion experience. This 50:50 joint venture
company will characterize a distinct identity in the youth fashion casual apparel
category in India.
Raymond Group’s products are retailed through ‘The Raymond Shop’
(TRS) - the most celebrated retail chain of its kind in the Indian sub-continent. The
Raymond distribution network comprises of more than 20,000 Multi Brand Outlets
and over 400 exclusive retail outlets in more than 170 cities which includes ‘The
Raymond Shop’ which retails Raymond Fabric and menswear brands (Park
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Avenue, Parx, Manzoni and ColorPlus) and exclusive brand outlets for Park
Avenue, Manzoni, Colorplus, Parx and Zapp!. The Raymond Shop also has 27
outlets overseas in the Middle East, Sri Lanka and Bangladesh. The Raymond
Group has in its portfolio some of the most respected brands in India - Raymond as
well as leading menswear brands - Park Avenue, Parx, Manzoni and ColorPlus.
Recently, Raymond, the flagship brand from India’s leading textile & apparel
major Raymond Ltd. took the craftsmanship of garment making and customer
convenience to new echelons by launching ‘Raymond Finely Crafted Garments’
(FCG).
Raymond entered into the ready to wear business with the introduction of
Park Avenue in 1986, catering to the formal men’s wear market. Parx was
launched in 1998 to address the growing trend of smart casuals. Both brands have
captured major market share in their respective categories due to an inherent
advantage of vertical integration and a strong retail presence. In 2000, Manzoni, a
luxury lifestyle brand was launched offering a super-premium formal range of
men’s shirts, suits, trousers, jackets, ties and leather accessories.
Raymond identified the vacuum for a high end, casual wear brand and
hence decided to acquire ColorPlus as a part of strategic expansion plan for their
ready-to-wear business. In September 2007, Raymond took its experience and
creativity to a whole new audience by entering into the women’s western wear
category with two premium brands, including, ColorPlus Woman, an exclusive
range of smart casual clothing for modern, discerning women and Park Avenue
Woman, a complete range of Business Wear for women.
Raymond Finely Crafted Garments (FCG) which was recently launched
offers the customers same Raymond brand promise of ‘Trust, Excellence, Quality
and Leadership’ in an exclusive formal range of ‘classic’ apparels and accessories.
Brands
RETAIL Raymond Apparel has also ventured into the kidswear segment,
with its exclusive brand ‘Zapp!’ Covering the spectrum of children's lifestyle
products, it includes an entire range of children's apparel and accessories. In
addition to this, Raymond Apparel has also launched ‘Notting Hill’, the new
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apparel brand under the popular price segment. A complete ‘value-for money’
men’s wear brand, Notting Hill is the perfect combination of fashion, fit, styling
and affordability. All brands from the Raymond Group portfolio are well
entrenched in the market and are sold through multi brand outlets, as well as
dedicated, exclusive stores, in India and the Middle East.
Raymond Textile Division- A Profile
Raymond Limited, India’s leading Textile and Apparel Company, is
amongst the few companies in the world who bring wool from the back of the
sheep to the back of the man, to become the largest integrated manufacturer of
worsted fabric in the world. With a capacity of 33 million meters of wool & wool-
blended fabrics, Raymond has over 60% market share in worsted suitings in India.
With the inauguration of the Vapi plant, Raymond would boast of an installed
capacity of 28 million meters. It is perhaps the only Company in the world to have
such a wide range of suiting fabric to suit all ages, occasions and styles making it
the preferred choice of top international design houses in over 50 countries.
Raymond has many firsts to its credit from introducing the polywool blend
in India (1959) to the launch of superfine wool collections such as the Lineage
Line (1995), the Renaissance Collection (1996), and the Chairman’s Collection
(1999). Raymond was also the first company to establish the retail franchise
network in India and neighboring countries. Raymond has mastered the craft of
producing the finest suiting in the world using super fine wool from 80S to 220S
count and blending the same with superfine polyester and other specialty fibres,
like Cashmere, Angora, Alpaca, Pure Silk, Linen etc. It owns and operates three
state-of-the-art manufacturing facilities at Thane and Jalgaon in Maharashtra and
Chhindwara in Madhya Pradesh. With the new facility at Vapi in Gujarat, the
Company will further increase its capacity by 3 million meters to have a total
installed capacity of 31 million meters by April 2007.
Recently, Raymond Limited announced expansion of its capacity for
worsted suiting at Vapi in Gujarat by 3 million meters per annum. This would be
an integrated facility starting from spinning upto finishing of fabric. The total cost
of expansion is estimated at Rs.197 crores. It is expected to go on stream from
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April- 07. A pioneer in manufacturing worsted suitings in India, Raymond
produces nearly 12,000 varieties of suitings and is available in over 400 towns
through 30,000 retailers. The Raymond suitings are also available through 320
exclusive The Raymond Shop (TRS) in 135 cities in India and abroad with 290
outlets in India and 20 outlets abroad.
Raymond today offers customers a choice of over 4800 SKUs in over
20,000 patterns. The fact that Raymond makes world quality fabrics is evident in
the global acceptance the brand has received. Internationally renowned menswear
designers today style their latest collections from Raymond – the fabric in fashion.
Raymond is the symbol of quality, style and an uncompromising commitment to
its customers. It has achieved this by taking continuous initiatives in product
development, marketing and setting up efficient distribution channels. Today,
Raymond is ranked as the ‘Most Respected’ Textile Company in India.
In our endeavor to keep nurturing quality and leadership, we always chose
the path untrodden - from being the first in 1959 to introduce a polywool blend in
India to creating the world's finest suiting fabric, the Super 230s made from the
superfine 11.8 micron- wool. Today, the Raymond group is vertically and
horizontally integrated to provide our customers total textile solutions. Few
companies across the globe have such a diverse product range of nearly 12,000
varieties of worsted suiting to cater to customers across age groups, occasions and
styles. We manufacture for the world, the finest fabrics- from wool to wool-
blended worsted suiting to specialty ring denims as well as high value shirting.
After making a mark in textiles, Raymond forayed into garmenting through
highly successful ventures like Silver Spark Apparel Ltd. (for fine Tailored Suits,
Trousers and Jackets), EverBlue Apparel Ltd. (Jeanswear) and Celebrations
Apparel Ltd. (Shirts). We also have some of the most highly respected apparel
brands in our portfolio: Raymond, Manzoni, Park Avenue, ColorPlus , Parx, Be:
and Zapp! The Raymond Group also has an expansive retail presence established
through the exclusive chain of 'The Raymond Shop' and stand-alone brand stores
for Manzoni, Park Avenue, ColorPlus , Parx, Be: and Zapp!. With a 500 million
US$ turnover, we are today one of the largest players in fabrics, designer wear,
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denim, cosmetics & toiletries, engineering files & tools, prophylactics and air
charter services in national and international markets. All our plants are ISO
certified, leveraging on cutting-edge technology that adheres to the highest quality
parameters while also being environment friendly. With over 60% market share in
India, Raymond Ltd. is today the largest integrated manufacturer of worsted fabric
in the world. The company comprises the following divisions.
Who we are
With a 28 million meters (soon to be 31 million meters) capacity in wool &
wool-blended fabrics, Raymond commands an over 60% market share in worsted
suiting in India and ranks amongst the first three fully integrated manufacturers of
worsted suiting in the world. We are perhaps the only company in the world to
have a diverse product range of nearly 20,000 design and colours of suiting fabric
to suit every age, occasion and style. We export these to over 55 countries,
including USA, Canada, Europe, Japan and the Middle East.
What we do
Raymond produces high-value pure-wool, wool blended and premium
polyester viscose worsted suiting, in addition to half a million blankets and shawls.
Our strong in-house skills for research & development have always resulted in
path-breaking new products, raising the standard of the Indian textile industry. Our
relentless pursuit of excellence has earned us an over 60% market share in worsted
suiting in India.
Creating the finest suiting in the world
Over time, Raymond has mastered the craft of producing the finest suitings
in the world using super fine wool (with a fine count from 80s to 230s) and
blending the same with superfine polyester and other specialty fibres like
Cashmere, Angora, Alpaca, Pure Silk, Linen etc. We also produce and market
plush-velvet furnishing fabric in a wide array of designs and colours for Indian and
overseas markets.
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Technological Breakthroughs to our Credit
Raymond has been pioneering technological breakthroughs over the years,
and was the first to introduce Polyester-Wool and Polyester-Wool-Viscose in the
Indian market. During the last decade, many path breakthroughs were made.
1995: Superfine pure wool collection under the Lineage Line (Super
100s to Super 140s).
1996: The Renaissance Collection made of Merino wool blended with
polyester and specialty fibres (Super 100s to Super 140s).
1999: The Chairman's Collection of Super 150s made from Merino
Wool and Cashmere followed by Super 160s to Super 190s.
2002: Super 200s (13.5 microns) fabrics under the Chairman's
Collection.
2003: Applause Wool-Rich Home Washable Suiting.
2003: Super 210s (13.2 microns) fabrics under the Chairman's
Collection.
2004: Super 220s (12.7 microns) fabrics under the Chairman's
Collection.
2005: Raymond achieved a rare feat and a historical milestone with the
creation of the world's finest worsted-suiting fabric from the finest wool
ever produced in the world- The Super 230s fabric made up of 11.8
micron of wool.
2005: Launch of 'Expressions' an exquisite collection of all wool and
polywool suiting fabric specially crafted using exotic fibres like
Cashmere, Angora, Mohair, Bamboo, Casein.
A legacy of Style
Through the years, Raymond has been consistently reckoned as the
torchbearer of quality and style and this has been vindicated by our ever increasing
customer base.
We not only rank amongst the first three fully integrated manufacturers of
worsted suitings in the world but are also regarded as the ‘Most Respected ’
Textile Company in India.
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Here we are !
Our suitings are available in India in over 400 towns through 30,000
retailers as well as more than 300 exclusive retail shops better known as 'The
Raymond Shop'. Our exclusive chain is present in over 150 cities across India and
overseas.
Producing 230s
Raymond has created the world’s finest worsted suiting fabric- the Super
230s, from the world’s finest wool (a tiny 11.8 micron- approximately one-fifth the
diameter of human hair!). The term ‘Super 230s’ connotes fineness of the fabric. It
is half the thickness of the standard 22.5 micron wool grade used for worsted
suiting fabric. This fabric is a generation ahead of our previous innovation, the
Super 220s.
The Super 230s worsted suiting fabric has been included in the Raymond’s
‘Chairman’s Collection’, a range of international, superfine light fabrics with
unparalleled comfort and luxury. The fibre of this bale comes from a breed of
Australian Merino Sheep - renowned for their fine fleece. As this is an extremely
delicate fibre, producing it involves skilled manpower and careful handling- right
from spinning, weaving to the finishing of the product. With the introduction of
this ultra-fine fabric, Raymond has become the first Indian textile company to
emerge as a leader in a domain that has traditionally been the stronghold of Italian
and Japanese textile companies.
Enchanting ‘Expressions’
From Raymond's latest collection
Developed in-house, ‘Expressions’ is an exquisite collection of all wool and
polywool suiting fabric. The ‘Expressions’ collection comprises innovative and
classy suit lengths, trouser lengths, jacketing and coat lengths. The collection is
available at prominent retails shops and ‘The Raymond Shop’ outlets.
We create this range of fabrics using specially crafted using exotic fibres
like Cashmere, Angora, Mohair, Bamboo, Casein (a fibre developed from milk
protein), Linen, Silk, Soyabean, Tencel blended with Super 120s, 100s Merino
Wool and fine polyester. This combination of fine wool specialty fibres, lends the
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fabric a soft texture with durability and drape while its versatility allows it to be
stylishly fashioned
Pioneering Role of Raymond
Garment companies have been successful in the Indian market using
different approaches and distribution methods. Raymond, with its history of more
than 75 years, relies on its long standing reputation, loyal customer base and well-
established, extensive retail network in over 400 towns through 30,000 retailers
and over 270 exclusive Raymond Shops.
In fact, Raymond initiated the entire business of developing the menswear
apparel business. It started the development work through the introduction of its
first brand, Part Avenue. The readymade garments division has since then grown
rapidly. It has create many a pioneering trend such as ready wear suits. Raymond
has now become the leader among ready - mades. In India, achieving a business
turnover of over Rs. 200 crores with its three brands - Park Avenue formal wear.
Pazx casual wear and Manzoni, a premium range of shirts, suits and ties. Raymond
as a group enjoys a huge advantage over the competition - that of vertical
integration - right from manufacturing, to ready-to-wear to distribution. The main
components of a successful integrated ready-made garments manufacturer are:
Fabric design
Garments design
State-or-the-art manufacturing systems.
Integrated logistics
To participate on a global platform, one cannot do without any one of these
components. Logistics has to do with supply chain man-agreement. It starts from
the procurement of the basic raw material till the finished product reaches the end
consumer. In the ready-to-wear segment, the maintenance of the logical chain is
challenging due to the various fits, collections and seasonalities and also the
challenges in term of colour and design, as requirements of both design and fabric
change with season. At Raymond, the entire supply chain management is managed
through a state-of-the-art software system, developed and tailored to meet its
specific needs.
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With a capacity of 25 million meters of wool & wool blended fabrics,
Raymond ranks among the top three integrated producers in the world and has a 60
per cent market share in India alone. Internationally it is known to be a quality
supplier of fabric to many leading global brands, having a consolidated position in
the global fabric exports market. It exports suitings market. It exports suitings to
more than 50 countries including the U.S. Canada, Europe, Japan and West Asia.
Exploring potential markets for expansion is one of its prime focuses.
Some time in the 1960’s, one of Raymond’s regular textile importers in
Sweden made the observation that the cost of manufacturing readymade garments
was becoming increasingly prohibitive in his country. This was true for the rest of
Europe as well. Raymond was quick to seize this opportunity. Assessing the
viability and future scope of garment exports. Raymond set up a readymade
garment plant at Thane (Mumbai) in 1968. While the machinery and equipment
arrived from Italy, Sweden, Germany and the U.S., the know how cam from
Scandinavia. Swedish experts trained a team of technicians at Raymond in every
area of the garment business.
It was a logical extension for Raymond to get into the readymade garment
segment and today there is total synergy between textile and ready-mades. While
it has mastered the art of making quality fabrics, its objective is now to attain a
significant global position in the readymade segment. The aim is to be among the
considered brands in the world and to have the mind share of leading garment
manufactures and the best brands globally. At the point of its entry into readymade
garments there was no existing ready-to-wear wardrobe brand. Which met the
consumer’s needs.
Acquisitions for growth
The major player in the nation’s fiercely competitive apparel retailing
industry are constantly positioning themselves to maximize profits. To foster
growth, many firms bought out the competition or other companies that would
given them access to new markets and distribution channels. The downside of all
this acquisition activity is the potential to create too many similar products,
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Attracting new customers and generating sales are the top strategic goals for
retailers.
In September 2001, Raymond Limited acquired the entire shareholding of
Regency Texteis Portuguesa Limitada, a company incorporated in portugal and
having its factory in caminha, at the total share price of $ 3 million. Portugal offers
a highly competitive cost structure in western Europe for garment manufacturing
with wage levels significantly lower than in the U.K., France, Italy and West
Germany. The acquisition has provided Raymond with a manufacturing and
distribution base in Europe. It intends to expand the retail shop network of regency
significantly and through this acquisition promote the Raymond brand in Europe.
With a tenfold rise in sales in the past decade, ready made trousers are the
hottest item in the men’s apparel market. As per a Five-Year Fact File the trouser
market in India has grown at three per cent every year over the past 5 years. From
14, the number of national brands has grown to 25, a 75 per cent growth. From Rs.
385 crore five years ago, the estimated worth of the branded trouser market has
grown to more than Rs.800 crores today.
Raymond is also the manufacturer of the widest range or trouser fabric in
the county. Raymond emphasizes that the Indian men till recently opted for fit and,
of course, price and wear ability. The company produces over 6000 varieties of
suitings. For Raymond, on a category wise perspective, the overall focus will be
on shirts. The casuals business will be looking at good growth including denim.
Exports are an identified growth are for branded garments. At present exports are
in the initial stages.
Raymond Ltd has announced a major expansion of its business fabric.
The company is set to undertake a Rs.197-crore project envisaging
expansion of its production capacity of worsted suiting at its Vapi unit in Gujarat
by three million metres per annum. This would be an integrated facility starting
from spinning to finishing of fabric and is expected to go on stream from April
next year, the company announced. The first phase of expansion announced last
year is likely to start commercial production shortly as per planned schedule. After
this expansion, the company would have a total capacity for worsted suiting of 31
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million metres per annum, which would be one of the largest integrated
manufacturing facilities for worsted suiting in the world, the company claimed.
The announcement comes at a time when the textile industry in India is going
through a buoyant phase. The textile division of Raymond has recorded revenue of
Rs.612 crore for the nine months ended December 2005, a growth of 12 per cent
over the corresponding period of previous year.
One-stop-shop
The suits and trousers manufacturing facility set up by the company as part
of its strategy to be a one-stop-shop is already operational and large portion of the
export growth in the business is likely to come through this route. Announcing the
expansion in a notice to BSE, Mr. Gautam Hari Singhania, CMD of the company,
said, "The company is moving forward as planned along the path of becoming a
world class integrated textile player through putting up world class manufacturing
capacity and partnerships with internationally well reputed players."
The company also informed BSE that Mr. I.D. Agarwal ceased to be a
director of the company, consequent upon the withdrawal of his nomination by
UTI Asset Management Co Pvt. Ltd.
1925 - Setup of The Raymond Woollen mill in the area around Thane
creek.
1944: Lala Juggilal, Lala Kailashpat Singhania took over The Raymond
Woollen Mill. The mill was primarily making cheap and coarse woollen
blankets, and modest quantities of low priced woollen fabrics.
1950 - Setup of a new manufacturing activity for making indigenous
engineering files known as JK Files & Tools. This has now become the
largest facility of its kind in the world.
1958 - The first exclusive Raymond Retail showroom, King's Corner,
was opened in 1958 at Ballard Estate in Bombay.
1964 - Setup of a new Combing Division. This was followed by a phase
of vertical integration, facilitating in the processing of multi-fibres and
technology improvements to make blended fabrics.
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1968 - Raymond setup a readymade garments plant at Thane. The
readymade garments division of Raymond has since then grown rapidly.
Raymond has now become the leader among readymades, in India,
achieving a business turnover of over Rs.2000 million.
1979 - A new manufacturing facility was set up at Jalgaon, to meet the
increasing demand for worsted woollen fabrics.
1980: Vijaypat Singhania took over the reins of the company. He
injected fresh vigour into Raymond, transforming it into a modern,
industrial conglomerate.
1986 - Launch of "Park Avenue", the premium lifestyle brand providing
a complete wardrobe solution to the men who like to dress well & be
current on styles & fashion.
1990 - The first showroom abroad for Raymond in Oman.
1991 - A new manufacturing facility was set up at Chhindwara, near
Nagpur.
1995 : Superfine pure wool collection under the Lineage Line (Super
100S to Super 140S).
1996: The Renaissance Collection made of Merino wool blended with
polyester and specialty fibres (Super 100S to Super 140S).
1996: Raymond's denim; focusing on quality, innovation and the
creation of exclusive products that have always caught the eye of some
of the world's leading denimwear brands. Its designs have always kept
pace with the changing styles and cuts found in every youngster's closet.
With a 40 million meters capacity, Raymond today ranks amongst the
top 2 producers of ring denim in India
1999: The Chairman's Collection of Super 150S made from Merino
Wool and Cashmere followed by Super 160S to Super 190S.
1999: Launch of "Parx", a premium casual wear brand bringing
customers a range of semi-formal and casual clothes.
2000: Launch of "Be:", exclusive prêt line of ready-to-wear designer
clothing for men and women.
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2003: Setup of 'Silver Spark Apparel Ltd.' for manufacturing suits and
formal trousers catering largely to export markets.
2003: Acquisition of ColorPlus
2004: Super 220S fabrics under the Chairman's Collection.
2005: Setup of state-of-the art jeanswear facility 'Everblue Apparel Ltd.'
near Bangalore.
2005: Setup of state-of-the art facility 'Celebrations Apparel Ltd.' for the
manufacturing of formal shirts.
2005: Raymond achieved a rare feat and a historical milestone with the
creation of the world's finest worsted-suiting fabrics from the finest
wool ever produced in the world- The Super 230s made up of 11.8
micron of wool.
2005: Launch of 'Expressions' an exquisite collection of all wool and
polywool suiting specially crafted using exotic fibres like Cashmere,
Angora, Mohair, Bamboo, Casein.
2006 Set of Raymond's third worsted unit at Vapi in Gujarat. Raymond
now has 3 state of the art units with a combined capacity of 31 million
meters of worsted fabric.
2006 Launch of design studio in Italy for cutting edge design
capabilities for exports and domestic brands.
2006: Set up of world class carded woollen unit, Raymond Fedora Ltd,
in Jalgaon.
2006 Set up of greenfield shirting unit at Kolhapur producing high value
cotton shirting. This facility is set up as part of the company's JV with
Gruppo Zambaiti.
2006 Set up of J.K. Talabot Ltd - JV with MOB, France for the
manufacturing of files and rasps.
2006 Launch of Zapp! our kidswear brand with first store in
Ahmedabad.