strategy management by arvind mills
TRANSCRIPT
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
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
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 .