Organization study on Arvind Limited

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Organization study on Arvind Limited

CONTENTS
SL PAGE
NO NO
01 CHAPTER-01:
INTRODUCTION ABOUT THE ORGANISATION AND 3-10
INDUSTRY

CHAPTER-2: ORGANIZATION PROFILE

 BACKGROUND

 NATURE OF BUSINESS

 VISION, MISSION AND QUALITY POLICY

 WORKFLOW MODEL

 PRODUCT/SERVICE PROFILE

 OWNERSHIP PATTERN

 ACHIEVEMENTS/AWARDS

 FUTURE GROWTH AND PROSPECTS

CHAPTER-3:
 MCKENSY’S 7S FRAMEWORK

 PORTER’S FIVE FORCE MODEL

CHAPTER-4:
SWOT ANALYSIS

CHAPTER-5:

ANALYSIS OF FINANCIAL STATEMENTS

BIBLIOGRAPHY

ANNEXURE

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Organization study on Arvind Limited

CHAPTER 1

INTRODUCTION ABOUT THE ARVIND LTD

• Arvind Mills, the flagship company of the Lalbhai Group, is one of India's leading
composite manufacturers of textiles.

• It manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis)
fabrics.

• They are producers of composite manufacturer of textiles with headquarters in Ahmedabad,

Gujarat, India.

• India's largest denim manufacturer apart from being world’s fourth-largest producer and
exporter of denim.

• In the early 1980s, the company brought denim into the domestic market, thus started the
jeans revolution in India.

• Today it not only retails its own brands like Flying Machine, Newport and Excalibur but
also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its
nationwide retail network. Arvind also runs a value retail chain, Mega Mart, which stocks
company brands.

Textile industry is the second most polluting industry after the Chemical Industry. The
concept and need for sustainability is the prime factor for this industry. The Water act 1974,
The Water Cess Act 1977, 1981 Air Act, 1986 Environmental Protection act, The National
Green Tribunal act 2010 mandated for a sustainable business model and Arvind is no
exception. In 2019 a project [Link] (Sustainable Resolution) which led the industries
strongly in addition of prevailing laws to move towards sustainable fashion that contributes to
a clean environment. The proverb, well begun is half done is apt when it comes to
sustainability. Arvind believes that sustainability must be at the source and must be
embedded in the production line to yield a value chain therefore it believes on six core inputs,
and manage, enrich and getting the inputs "fundamentally right" and that truly makes the
business model sustainably sound. Arvind's business model is not only confined to follow the
prevailing regulation laws but also tend to set up a benchmark among the industries to reduce
the use of natural resources as possible and
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to use an alternative which will not only be sustainable and environment friendly but also
inculcates its mantra into its each and every product

Segments in textile industry: -

 Readymade garments
 Cotton textiles including handlooms
 Man-made textiles
 Silk textiles
 Woollen textiles
 Handicrafts including carpets
 Coir
 Jute

ABOUT ARVIND LIMITED

Arvind Ltd is the largest cotton textiles manufacturer and exporter in India. The company’s
principal business consists of manufacturing and marketing of denim fabric, shirting fabric,
shirts, knitted fabric, and garments. The company has the rights to market international
brands such as Lee, Wrangler, Arrow and Tommy Hilfiger in India. The company has also
owned popular brands such as Newport, Flying Machine, Excalibur and Ruff & Tuff. They
are having their production facilities at Ahmedabad, Mehsana, Gandhinagar in Gujarat, Pune
in Maharashtra and Bangalore in Karnataka.
Arvind Ltd was incorporated in 1931 as Arvind Mills Ltd by three brothers Kasturbhai,
Narottambhai and Chiman Bhai. In 1934, they established themselves amongst the foremost

textile units in the country. They are the first company to bring globally accepted fabrics such
as denim, yarn dyed shirting fabrics & wrinkle free gabardines to India in the year 1986.

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STORY ABOUT ARVIND LIMITED

A manifestation of hopes and aspirations

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Our story is a whole century’s worth of dreams and struggles of a country growing through a
hard-won Independence; of giving back to the society more than what we take from it.
Our story is the manifestation of the hopes and aspirations of our people.
We make textiles, and we make homes. We fuse the offline and the online. We challenge what’s
possible by fashioning newer possibilities. We are Arvind. And this is our story.

The Beginning

1897: At a time when there was hardly any

manufacturing activity in India, Lalbhai Dalapatbhai set
up his first mill, the Sara spur Manufacturing Company.

The Spirit of Swadeshi

1931: In response to Mahatma Gandhi’s call for

Swadeshi during the struggle for Indian Independence, the
Lalbhai family founded Arvind Mills, creating a capacity to
compete with the world’s finest textile mills.

Textiles to Dye For

1952: After two decades of success in the textile

industry, Kasturbhai Lalbhai set up India’s first dye and
chemical plant, under the aegis of Atul Products Ltd, in
order to reduce the nation’s dependence on imported dyes,
and chemicals.

Innovating the future

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1985: Renovision, a new strategic plan for the

Company, was introduced. It was to put Arvind and India
onthe global map of denim manufacturing. Just as India, a
protected economy, was opening up to the world, Arvind had
firmly shifted its focus on domestic to international markets.

Global Brands Come Knocking

1993: Through tie-ups with V.F. Corporation

(USA) and Cluett Peabody & Co. USA, for
manufacturing and marketing, Arvind was able to offer
high quality global apparel brands like Lee Jeans and
Arrow Shirts to the Indian market

Development through a unique partnership

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1996 1996:

SHARDA
As a part of its CSR efforts, a unique
Private-People-Public partnership was launched with
Trust, the Ahmedabad Municipal
Corporation and residents of the Sanjay Nagar slum
coming together.

The New Arvind

2008: To accurately reflect the multi-faceted

nature of the organization, the name of the Company
was changed to Arvind Ltd. from Arvind Mills Ltd.

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2008
Farm to Retail

2010: The Arvind Store was set up to house the best

brands of Arvind under one roof. The store offers not
only the entire range of the Company’s fabrics and
apparel but also the services of Studio Arvind, the
bespoke tailoring unit

Better Cotton, Now in India

2011: First Better Cotton Initiative (BCI) bale

produced from India, from the Arvind farm project in
Akola. BCI seeks to grow cotton responsibly by
controlled application of water & use of approved
fertilizers; thereby dramatically reducing the footprint.

Khadi gets reimagined

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2017: With the birth of Khadi Denim, the

legacy of Swadeshi, which had inspired the
founding of Arvind, came full circle. Each single
yard of Khadi Denim is spun, dyed and woven by
artisans carrying on centuries-old handloom
traditions.

HISTORY OF ARVIND LTD

 1897: Arvind Mills starts a business for sarees.

 1931: Arvind Mills Ltd is incorporated by three brothers Kasturbhai, Narottambhai
and Chiman Bhai.[8] with a share capital of ₹165,000 ($2500) in  Ahmedabad. The
products manufactured are dhoties, sarees, mulls, dorias, crepes, shirtings, lingerie,
coatings, printed lawns and voiles cambric’s, twills and gaberdine.

 1934: Becomes established as the foremost textile units in the country.

 1985: Diversified into electronics by setting up a plant to manufacture electronic
telephone exchanges (EPABX) and also entering into marketing pharmaceutical
products and B&W and colour television sets under the name Pyramid.

 1986: Becomes first company in India bring globally accepted fabrics such as

Denim yarn dyed shirting fabrics & wrinkle free gabardines.

 1991: Arvind reaches 100 million meters of denim per year, becoming the fourth-
largest producer of denim in the world.

 1992: The company increases production of denim cloth by 23,000 tonnes per day
by modernising the plant at Khatraj of Ankur Textiles.

 1994: The company's operations are divided into textile, telecom and garments
divisions.

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 1995: The garment division launches ready to stitch jeans pack under the brand
Ruff & Tuff.

 1998: Arvind Mills emerges as the world's third largest manufacturer of denim.
o Arvind Mills goes live with SAP R/3 ERP package in April 1997 in their
new manufacturing units.

 2001: (February): company increases the number of Spindles and Stitching

Machines by 2036 Nos and 38 Nos respectively.

 2003: For the fourth quarter, Arvind Mills saw a 280% growth in net profit.
 Arvind Mills Ltd is assigned a "P1+" rating by CRISIL, which indicates a very
strong rating for their commercial paper.
 Increases the number of Stitching machines by 7 Nos.

 2004: Expanded their shirts manufacturing capacity from 2.4 million pieces to 4.8
million pieces per annum. Its subsidiary company Arvind Spinning Ltd commences
its operation.

 2005: For the fourth quarter in a row, Arvind Mills posts a profit growth in excess
of 80%.

 2006: New Denim collection was launched aimed at Super Premium brands
of US, Europe, Japan and Korea. Also opened new venues for the Denim division as
response to this collection was good.
 August: Wholesale branded apparel business of Arvind Fashions Ltd sold to
VF Arvind Brands Pvt Ltd.

 2007: Arvind expands its presence in the retail segment by establishing Mega Mart,
one of India's largest value retail chains.

 2008: From March, company signs an exclusive license agreement with The
Philips-Van Heusen Corporation for designing, distribution and retailing of IZOD
brand apparels in India.

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 May: Company's name changed from Arvind Mills Ltd to Arvind Ltd to
accurately reflect the multi-faceted nature of the organization.

 2014: joint venture with PVH Corp for Calvin Klein Businesses in India.
 Launches formal suits with Goodhill Corporation Limited of Japan.

 2015: partnered with USA-headquartered Invite, owner of the Lycra fibre brand to
manufacture stretch denim fabric in India.
 Company launches denim fabric Khadi Denim.
 Collaborates with world's largest internet giant and most renowned denim
brand and launches wearable denim technology and smart denim jackets.

 2016: The company enters online retailing with [Link], a one-stop shopping
destination for trendsetters across India.

 2018: (March): Audient (NYSE: ADNT), the global leader in automotive seating
announced the formation of Audient Arvind Automotive Fabrics a joint venture with
Arvind Limited for development, manufacture and sale of automotive fabrics
in India and the new company will be based in Ahmedabad, India, and will
manufacture high-end performance fabrics for automotive seating systems at a world-
class fabric manufacturing facility.

Type 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),

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Products Denim, knits, woven, engineering, retail, telecom, advanced material,

agribusiness, real estate, the Arvind Store

Revenue ₹5,407.26 crore (US$760 million) (2016)

Net income ₹318.85 crore (US$45 million) (2016)

Number of 25,620

employees

Parent Arvind Lalbhai Group

CHAPTER-2

COPANY PROFILE

BACKGROUND OF THE ARVIND LTD

Arvind Limited (formerly Arvind Mills) is a textile manufacturer and the flagship company
of the Lalbhai Group. Its headquarters are in Naroda, Ahmedabad, Gujarat, India, and it has
units at Santej (near kalol). The company manufactures cotton shirting, denims, knits and
bottom weight (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. Sanjay
Bhai Lalbhai is the current 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
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domestic market, thus starting the jeans revolution in India. Today it retails its own brands
like Flying Machine, Newport and Excalibur and licensed international brands like Arrow,
Tommy Hilfiger, and Calvin Klein through its nationwide retail network. Arvind also runs
three clothing and accessories retail chains, the Arvind Store, Unlimited and Mega Mart,
which stocks company brands.
Arvind ltd Textile industry is the second most polluting industry after the Chemical Industry.
The concept and need for sustainability is the prime factor for this industry. The Water act
1974, The Water Cess Act 1977, 1981 Air Act, 1986 Environmental Protection act, The
National Green Tribunal act 2010 mandated for a sustainable business model and Arvind is
no exception. In 2019 a project [Link] (Sustainable Resolution) which led the industries
strongly in addition of prevailing laws to move towards sustainable fashion that contributes to
a clean environment. The proverb, well begun is half done is apt when it comes to
sustainability. Arvind believes that sustainability must be at the source and must be
embedded in the production line to yield a value chain therefore it believes on six core inputs,
and manage, enrich and getting the inputs "fundamentally right" and that truly makes the
business model sustainably sound. Arvind's business model is not only confined to follow the
prevailing regulation laws but also tend to set up a benchmark among the industries to reduce
the use of natural resources as possible and to use an alternative which will not only be
sustainable and environment friendly but also inculcates its mantra into its each and every
product.

NATURE OF THE ARVIND LTD:

The textile mills and products industry comprise establishments that produce yarn, thread,
and fabric and also a wide variety of textile products for use by individuals and businesses,
but not including apparel. Some of the items made in this industry include household items,

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such as carpets and rugs, towels, curtains, and sheets; cord and twine; furniture and
automotive upholstery; and industrial belts and fire hoses. The process of converting raw
fibres into finished no apparel textile products is complex; thus, most textile mills specialize.
In general, there is little overlap between knitting and weaving mills, or among mills that
produce cotton and wool fabrics.

Textile mills take natural and synthetic fibers, such as cotton and polyester and transform
them into yarn, thread, or webbing. Yarns are strands of fibers in a form ready for weaving,
knitting, or otherwise intertwining to form a textile fabric. They form the basis for most
textile production and commonly are made of cotton, wool, or synthetic fiber, such as
polyester. Yarns also can be made of thin strips of plastic, paper, or metal. To produce spun
yarn, natural fibers, such as cotton and wool, must first be processed to remove impurities
and give products the desired texture and durability, as well as other characteristics. After this
initial cleaning stage, the fibers are spun into yarn.

Fabric and textile products are mostly produced by means of weaving, knitting, and tufting.
Workers in weaving mills use looms to transform yarns into cloth, a process that has been
known for centuries. Looms weave or interlace two yarns, so they cross each other at right
angles to form fabric. Although modern looms are complex, automated machinery, the
principle remains the same as in ancient times.

Knitting is another method of transforming yarn into fabric. Knitting interlocks, a series of
loops of one or more yarns to form familiar goods, such as sweaters. However, unlike the
knitting done with hand-held needles, knitting in the textile industry is performed on
automated machines. Many consumer items, such as socks, panty hose, and underwear, are
produced from knitted fabric.

Tufting, used by carpeting and rug mills, is a process by which a cluster of soft yarns is
drawn through a backing fabric. These yarns project from the backing’s surface in the form of
cut yarns or loops to form the familiar texture of many carpets and rugs.

At any time during the production process, a number of processes, called finishing, may be

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performed on the fabric. These processes, which include dyeing, bleaching, and
stonewashing, among others, may be performed by the textile mill or at a separate finishing
mill. Finishing encompasses chemical or mechanical treatments performed on fiber, yarn, or
fabric to improve appearance, texture, or performance. Mechanical finishes can involve
brushing, ironing, or other physical treatments used to increase the lustre and feel of textiles.
Application of chemical finishes to textiles can impart a variety of properties ranging from
decreasing static cling to increasing flame resistance.

Dyeing operations are used at various stages of production to add colour and intricacy to
textiles and increase product value. Textiles are dyed using a wide range of dyestuffs,
techniques, and equipment. Most fabric that is dyed, printed, or finished must first be
prepared. In preparation, the mill removes natural impurities or processing chemicals that
interfere with dyeing, printing, and finishing. Typical preparation treatments include desiring,
scouring, and bleaching. Finally, the finished cloth is fabricated into a variety of household
and industrial products.

Regardless of the process used, mills in the textile industry are rapidly modernizing, as new
investments in automation and information technology have been made necessary by growing
domestic and international competition. Firms also have responded to competition by
developing new products and services. For example, some manufacturers are producing
textiles developed from fibres made from recycled materials.

Vision and mission

Vision:

Facilitated group familiarity on the subject of enhanced value of existence by providing

improved and motivating standard of living solution,

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Mission:

Elevate principles of existing by generating distinctive landed property solution. Accomplish

consumer pleasure from end-to-end originality and attention to detail in whole thing they
fabricate.

Quality policy:

Quality control are implemented in Arvind limited in order to maintain sustainable high
production standards passing from defined control points, the products are subject to various
test such as entry control test and pilot tests.

Feature observing procedure, set up are perceived to be industry pioneer benchmarks with
most grounded avoidance on counteractive action as opposed.

The actions of our organization are based on the following values:

 
  Respect
“Everybody is respected and valued in the company; therefore, we comply with the
rules and internal policies that ensures a good working environment”

 Quality
“We strive for comprehensive quality in our employees, processes and products in
accordance with current market demands and globalization”
 Innovation
“We are open to change, we seek continuous improvement and competitive
differentiation stemming from research, analysis, and creativity”
 Teamwork
“We offer to our team members our confidence, talent and enthusiasm so that they
can achieve common objectives with superior results”
 Social Responsibility
“We are committed to the rational and responsible use of resources, and the creation
of products that enhance the quality of life of our employees, customers, and society,
while caring for the environment, achieving economic growth, and gaining
competitiveness in our Company”
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WORKFLOW MODEL

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SPINNING PROCESS:

Spinning is a procedure of producing/converting fiber materials in yarns. On an initial stage it

goes through the blow room where the size of cotton becomes smaller by the help of
machinery followed by carding. After carding, the process is continued by drawing which
includes attenuating in spinning mills. The silver produced by drawing is then processed for
combining where consistent size of cloth is attained. It is then stepped further for roving for
purpose to prepare input package. This roving is attenuated by rollers and then spun around
the rotating spindle.

WEAVING PROCESS:

Weaving is second level after spinning. Here, the yarn from spinning section is sent further
for doubling and twisting. It is than processed for shifting of yarn in convenient form of
package containing sufficient yarn length. At the stage of creeping the exhausted packages
are replaced with the new ones which is followed by wrapping. The wrap yarn is provided a
protective coating to lessen the breakage of yarn which is called as sizing. It is considered as

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an important segment. This yarn is then processed for winding on weaver’s beam supported
by the final step of weaving

DYEING + PRINTING + FINISHING PROCESS:

Dyeing as well as printing of fabrics are usually carried before the application of other
finishes to the product in dyeing mills. It provides colour to fabric and also improves the
appearance of it. The product is then converted from woven to knitted cloth known as
finishing. Finishing is specifically carried after dyeing or printing to give a specific look.

GARMENT MANUFACTURING PROCESS:  

Garment manufacturing is the end procedure converting semi-finished cloth into finished
cloth. There are various steps completed by garment manufacturing companies for the
production of cloth. These processes include- Designing, Sampling, Costing, Maker Making
Cutting, Sewing Washing, Finishing, Packing, Final Inspection, Dispatch and much more

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PRODUCT AND SERVICE PROFILE

Textile services companies combine industrial laundry with textile rental services. The same

firm performs the entire process of supplying, cleaning and redistributing textiles with
specific and/or essential requirements. Commissioning a textile servicing company can
prevent a lot of hassle. For instance, bed linen and scrubs in hospitals need to adhere to very
strict rules and regulations; guidelines have been fixed for maximum bacteria counts, and
dirty/clean laundry routes are not allowed to cross.

The textile services industry usually works on a rental basis, to offer total service solutions a
wide variety of industries. The services cover workwear provision, infection-free bedsheets
and surgical gowns to healthcare providers, protective laboratory coats or clean linen to
hotels. Textile services companies have a vast expertise in logistics, design, laundry and
textile care services.

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The company is one of the leading players in the domestic ready-to-wear garments segment.
It has successfully launched and established multiple brands - own as well as international
ones (under license from the respective companies). Its own brands are managed by its
subsidiary Arvind Brands Limited and are marketed in India and some neighbouring
countries. Own brands include Flying Machine, Newport and Ruff & Tuff in jeans and
Excalibur in shirts. Licensed brands include Arrow (formals and casuals), Lee (jeans),
Wrangler (jeans) and Tommy Hilfiger (fashion)

PRODUCT PROFILE PRODUCTS: LIFESTYLE APPAREL

 DENIM  JEANS
 SHIRTING  SHIRTS
 KHAKI  THE READY TO WEAR
 KNITS  KNITS
 VOILES

BRANDS

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OWNERSHIP PATTERN

JUNE2021 MAR-2021 DEC-2020 SEP-2020

Foreign 0.00% 0.00% 0.00% 0.00%

Indian 42.61% 45.05% 45.05% 44.72%

Total 42.61% 45.05% 45.05% 44.72%

Promoter

Non- - - - -
Promoter

Institutions 21.43% 21.62% 19.43% 18.95%

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Non- 35.96% 33.33% 35.51% 36.33%

Institutions

Total Non- 57.39% 54.95% 54.95% 55.28%

Promoter

Custodian 0.00% 0.00% 0.00% 0.00%

Total 100.00% 100.00% 100.00% 100.00%

ACHIEVEMENTS AND AWARDS

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Arrow Award National Best Employer Award

Arrow ranked India’s most trusted apparel National Best Employer Award 2018

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Best Company to work for

1st in “Best Companies to Work For” in Retail (including QSR), by Business
Today

Best IW Brand Award

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16th Asia Pacific HRM Congress Excellence in Cost Mgmt.

16th Asia Pacific HRM Congress Excellence in Cost Management
Awards 2017

HR Award
Emerging Young Leader in HR Awards
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FUTURE GROWTH AND PROSPECTS

• Indian Textiles Industry is on upswing

- Sharp increase in domestic demand for apparel (brands & retail business growing by
about 30% since last 12 months) leading to increase fabric demand

• Most of the fabric manufactures have full order book

- Global demand recovery following reduced inventories and improved sales

- Apprehending that Chinese costs will rise due to wage & interest rate increases as well as
Yuan appreciation, several large buyers have not only expressed interest but started
purchasing textile products from India

• Indian Apparel Brand & Retail business is on upswing

- Set to grow at 25% + over next 3-4 years on account of

• Burgeoning middle and higher middle class

• Improved sentiments on account of improved macro-economic factors and positive forecast

• Significant addition to organized retail space: reasonable rent

 This statistic illustrates the growth rate of textile industry across India from fiscal year
2010 to fiscal year 2020. The growth rate of textile industry across India was
estimated to be 8.7 percent from fiscal year 2015 to 2020, up from about seven
percent from fiscal year 2010 to fiscal year 2015.
 Arvind Limited, India based Textile Company, posted double digit growth of 11 per
cent in the third quarter (Q3) FY20. The revenue increased to Rs. 1,869 cr (Q3 FY19:
rs. 1,680 cr) for the quarter that ended on December 31, 2019. The growth was driven
by the garment revenues which were 23 per cent higher and AMD (Advanced
Materials Division) by 16 percent.

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CHAPTER-3
MCKINSEY’S 7S MODEL
PORTER’S FIVE FORCE MODEL

MCKINSEY’S 7S FRAME WORK

ARVIND LIMITED makes use of the McKinsey 7s model to regularly enhance its
performance, and implement successful change management processes. 

HARD ELEMENT

[Link]

 Clearly defined:
The strategic direction and the overall business strategy for ARVIND LIMITED are clearly
defined and communicated to all the employees and stakeholders.

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 Guiding behaviour for goal attainment:

The strategic direction for ARVIND LIMITED is also important in helping the business
guide employee, staff, and stakeholder behaviour towards the attainment and achievement of
goals.

 Competitive pressures:
ARVIND LIMITED strategy also takes into consideration the competitive pressures and
activities of competitors. 

 Changing consumer demands:

An important aspect of the strategy at ARVIND LIMITED is that it takes into constant
consideration the changing consumer trends and demands, as well as the evolving consumer
market patterns and consumption behaviour.

 Flexibility and adaptability:

The strategy at ARVIND LIMITED is flexible and adaptable. This is an important aspect of
the strategic direction, and strategy setting at ARVINDLIMITED. Rigidity in strategy leads a
company and a business to often become stagnant and obstructs advancement, and
progression with evolving changes in the consumer markets. 

[Link]

 Organizational hierarchy:
ARVIND LIMITED has a flatter organizational hierarchy that is supported by learning and
progressive organizations. With lesser managerial levels in between and more access to the
senior management and leadership, the employees feel more secure and confident and also
have higher access to information.

 Inter-Departmental coordination:
ARVIND LIMITED has high coordination between different departments. The company’s
departments often form inter-department teams for projects and tasks that require multiple
expertise.

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 Communication: 
ARVIND LIMITED has a developed and intricate system for ensuring communication
between employees, and different managerial levels. The communication systems at
ARVIND LIMITED enhance the overall organizational structure.

[Link]
 Organizational systems in place:
ARVIND LIMITED has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or disputes. The
systems at ARVIND LIMITED are largely departmental in nature, and include, for example:

- Human resource management

- Finance

- Marketing

- Operations

- Sales

- Supply chain management

- Public Relation Management

- Strategic leadership

SOFT ELEMENT

[Link] values 
 Core values
The core values at ARVIND LIMITED are defined and communicated to foster a creative
and supportive organizational structure that will allow employees to perform optimally, and
enhance their motivation and organizational commitment. The core values at ARVIND
LIMITED include, but are not limited to:
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- Creativity

- Honesty

- Transparency

- Accountability

- Trust

- Quality

- Heritage

[Link] 

 Management/leadership style:
ARVIND LIMITED has a participative leadership style. Through a participative leadership
style, ARVIND LIMITED is able to engage and involve its employees in decision-making
processes and managerial decisions. This also allows the leadership to regularly interact with
the employees and different managerial groups to identify any potential conflicts for
resolution, as well as for feedback regarding strategic tactics and operations.

 Team vs groups:
 ARVIND LIMITED has effective and functional teams and works with them internally to
achieve its various business goals and objectives, and complete tasks. The company’s
management is encouraging and supportive, and the leadership provides a motivating and
pragmatic vision toad achieve.

[Link]

 Employee skill level vs business goals:

ARVIND LIMITED has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired internally as well as

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externally – depending on the urgency and the skill levels required. Based on this, it is seen
that ARVIND LIMITED has employees who are skilled as per the requirements of their job
roles and positions. All employees are given in house training to familiarize themselves with
the company and its values.

 Number of employees:
ARVIND LIMITED has employed a large number of employees. The number of employees
varies from country to country as per the requirements and needs of the business and
operations. The global team of ARVIND LIMITED is an inclusive one that accepts, and
encourages diversity, and works in synchronization with members to ensure attainment of
business goals. 

[Link]

 Employee skills:
ARVIND LIMITED has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications. ARVIND LIMITED prides
itself on hiring the best professionals and grooming them further to facilitate growth and
development.

 Employee skills vs task requirements:

ARVIND LIMITED has defined tasks and job roles and hires and trains employees for skill
levels accordingly with respect to those. The company ensures that all its job requirements
are met and that employees have the sufficient skills to perform their respective jobs in
accordance with the values and culture as well as the business goals and strategy of ARVIND
LIMITED.

 Skill management:
ARVIND LIMITED pays particular attention to enhancing the skills and capacities of its
employees. It arranges regular training and workshops – internally as well as externally
managed- to provide growth and development opportunities for its employees.

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PORTER’S FIVE MODEL

Porter Five (5) Forces Model was proposed by Michael E. Porter in 1979. The purpose was to
assess and evaluate the competitive positioning and strengths of business organisations. The
model has three horizontal competitive forces (Threat of Substitute Products or services, the
threat of new entrants and rivalry among existing firms) and two vertical forces (Bargaining
power of buyers and bargaining power of suppliers).

Application of this model can help Arvind Limited from Concept to Shelf to determine the
industry attractiveness and understand its competitive positioning in the market. The analysis
can also be used to make some strategically wise decisions that could improve the
performance of Arvind Limited from Concept to Shelf and ensure long-term survival.

[Link] of new entrants

Threat of new entrants reflects how new market players impose threats to the existing market
players. If the industry will be profitable and barriers to enter the industry will be low, it will
attract more players and hence, the threat of new entrants. will be high.

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Here are some factors that reduce the threat of new entrants for Arvind Limited from Concept
to Shelf:

 Entry in the industry requires substantial capital and resource investment. This force
also loses the strength if product differentiation is high and customers place high
importance to the unique experience.
 Arvind Limited from Concept to Shelf will face the low threat of new entrants if
existing regulatory framework imposes certain challenges to the new firms interested
to enter in the market. In this case, new players will be required to fulfil strict, time-
consuming regulatory requirements, which may discourage some players from
entering the market.
 The threat will be low if psychological switching cost for consumers is high and
existing brands have established a loyal customer base.
 New entrants will be discouraged if access to the distribution channels is restricted.

Arvind Limited from Concept to Shelf will be facing high new entrants threat if

 Existing regulations support the entry of new players.

 Consumers can easily switch the brands due to weak/no brand loyalty.
 Initial capital investment is high.
 Building a distribution network is easy for new players.
 Retaliation from the existing market players is not a discouraging factor.

[Link] of Substitute Products or services

The availability of substitute products or services makes the competitive environment
challenging for Arvind Limited from Concept to Shelf and other existing players. High
substitute threat shows that customers can use alternative products/services from other
industries to meet their needs. Various factors determine the intensity of this threat for Arvind
Limited from Concept to Shelf

The Threat of Substitute Products or services increases when;

 A cheaper substitute product/service is available from another industry

 The psychological switching costs of moving from industry to substitute products are
low.
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 Substitute product offers the same or even superior quality and performance as
offered by Arvind Limited from Concept to Shelf’s product.

However, this threat is substantially low for Arvind Limited from Concept to Shelf when;

 The switching cost of using the substitute product is high (due to high psychological
costs or higher economic costs)
 Customers cannot derive the same utility (in terms of quality and performance) from
substitute product as they derive from the Arvind Limited from Concept to Shelf’s
product.

[Link] among existing firms

The Rivalry among existing firms shows the number of competitors that give tough
competition to the Arvind Limited from Concept to Shelf High rivalry shows Arvind
Lifestyle Brands Limited From Concept to Shelf can face strong pressure from the rival
firms, which can limit each other’s growth potential. Profitability in such industries is low as
firms adopt aggressive targeting and pricing strategies against each other.

The Rivalry among existing firms will be low for Arvind Limited from Concept to Shelf if;

 There are only a limited number of players in the market

 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets different sub-
segments
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the industry without
incurring huge losses.

[Link] Power of Suppliers

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Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted by
suppliers on business organisations by adopting different tactics like reducing the product
availability, reducing the quality or increasing the prices.

Bargaining power of suppliers will be high for Arvind Limited from Concept to Shelf if:

 Suppliers have concentrated into a specific region, and their concentration is higher
than their buyers.
 This force is particularly strong when the cost to switch from one supplier to other is
high for buyers (for example, due to contractual relationships).
 When suppliers are few and demand for their offered product is high, it strengthens
the suppliers’ position against Arvind Limited from Concept to Shelf
 Suppliers’ forward integration weakens the Arvind Limited from Concept to Shelf’s
position as they also become the competitors in that area.
 If Arvind Limited from Concept to Shelf is not well educated, does not have adequate
market knowledge and lacks the price sensitivity, it automatically strengthens the
suppliers' position against the organisation.
 Other factors that increase the suppliers’ bargaining power include-high product
differentiation offered by suppliers, Arvind Limited from Concept to Shelf making
only a small proportion of suppliers’ overall sales and unavailability of the substitute
products.

Contrarily, the bargaining power of suppliers will be low for Arvind Limited from Concept to
Shelf if:

 Suppliers are not concentrated

 Switching costs are low
 Product lacks differentiation
 Substitute products are available
 Arvind Limited from Concept to Shelf is highly price sensitive and has adequate
market knowledge
 There is no threat of forward integration by suppliers.

[Link] Power of Buyers

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Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer
service.

There are some factors that increase the bargaining power of buyers:

 A more concentrated customer base increases their bargaining power against Arvind
Lifestyle Brands Limited from Concept to Shelf
 Buyer power will also be high if there are few in number whereas a number of sellers
(business organisations) are too many.
 Low switching costs (economic and psychological) also increase the buyers’
bargaining power.
 In case of corporate customers, their ability to do backward integration strengthen
their position in the market. Backward integration shows the buyers' ability to produce
the products themselves instead of purchasing them from Arvind Limited from
Concept to Shelf
 Consumers’ price sensitivity, high market knowledge and purchasing standardised
products in large volumes also increase the buyers' bargaining power.

CHAPTER-4

SWOT ANALYSIS

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Strengths

Abundant Raw Material Availability:

Allowing the industry to control cost and reduce overall lead-times across the value chain.

Low-Cost Skilled Labour:

Low-cost skilled labour providing a distinct competitive advantage for the industry.

Presence across the value-chain:

Presence across the value-chain providing a competitive advantage when compared to

countries likes Bangladesh, Sri Lanka, who have developed primarily as garments.

Reduced Lead-times:

Manufacturing capacity present across the entire product range, enabling textile companies
and garments do source their material locally and reduce lead-time.

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Super Market:

Ability to satisfy customer requirements across multiple product grades- small and large lot
sizes specialized process treatments etc.

Growing Domestic Market:

Growing Domestic market which could allow manufacturers to mitigate risks while allowing
them to build competitiveness.

Weaknesses

Fragmented industry:

Fragmented industry leading to lower ability to expand and emerge as world-class players.

Effect of Historical Government Policies:

Historical regulations thought relaxed continue to be an impediment to global

competitiveness.

Lower Productivity and Cost Competitiveness:

♦ Labour force in India has a much lower productivity as compared to competing countries
like China, Sri Lanka etc.

♦ The Indian industry lacks adequate economies of scale and is therefore unable to compete
with China, and other countries etc.

♦ Cost like indirect takes, power and interest are relatively high.

Technological Obsolescence:

♦ Large portion of the processing capacity is obsolete

♦ While state of the art integrated textile mills exist majority of the capacity lies currently
with the power loom sector.

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♦ This has also resulted in low value addition in the industry.

Opportunities

Post2005challenges:

During the year 2005 is a huge opportunity that needs to be capitalised.

Research and Development and Product Development:

♦ Indian companies needs to increase focus on product development. Newer specialized

fabric- smart Fabrics, specialized treatment etc. Faster turnaround times for design samples
Investing in design centres and sampling labs.

♦ Increased use of CAD to develop designing capability in the Organisation and developing
greater options.

♦ Investing in trend forecasting to enable growth of the industry in India.

Threats

Competition in Domestic Market:

Competition is not likely to remain just in the exports space, the industry is likely to face
competition from cheaper imports as well.

♦ This is likely to affect the domestic industry and may lead to increased consolidation.

Ecological and Social Awareness;

♦ Development in the form of increased consumer consciousness on issues such as usage of

child labour unhealthy working conditions etc.

♦ The Indian industry needs to prepare for the fall out of such issues by issues by improving
its working practices.

Regional alliances:

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♦ Reginal trade blocs play a significant role in the global garment industry with countries
enjoying concessional tariffs by virtue of being members of such blocs/ alliances.

♦ Indian industry would need to be prepared to face the fall out of the post 2005 scenarios in
the form of continued barriers for imports.

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CHAPTER-5
ANALYSIS OF FINANCIAL STATEMENT

TABLE 1: TABLE SHOWING INCOME STATEMENT

YEAR SALES OTHER TOTAL TOTAL EBIT INT TAX NET PROFIT
INCOME INCOME EXPENSES
2021 5675 45 5720 5342 1344 15 345 354
2020 4538 76 4614 8765 568 20 365 243
2019 3456 87 3543 4352 534 18 265 657
2018 3214 56 3270 4232 674 12 537 234
2017 4532 34 4566 3467 736 45 356 536

CHART 1: SHART SHOWING INCOME STATEMENT

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
YEAR SALES OTHER TOTAL TOTAL EBIT INT TAX NET PROFIT
INCOME INCOME EXPENSES

Series1 Series2 Series3 Series4 Series5

INTERPRETATION:
In Financial year 2020 – 21, Sales is said to be 5675, The Total income of a company is 5720,
Earning before Interest and tax is 3144, Total Expenses of a company is 1,914 and Net loss of
a company is 354

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TABLE 2: TABLE SHOWING CASH FLOW STATEMENT

YEAR OPERATING INVESTING FINANCING NET CASH

ACTIVITIES ACTIVITIES ACTIVITIES FLOWS
2021 435 -78 -234 64
2020 765 -65 -345 43
2019 234 -98 -756 87
2018 324 -54 -45 45
2017 534 -78 -34 657

CHART 2: CHART SHOWING CASH FLOW STATEMENT

30000

25000

20000

15000

10000

5000

0
YEAR SALES OTHER INCOME TOTAL INCOME TOTAL EXPENSES

Series1 Series2 Series3 Series4 Series5

INTERPRETATION:
The above graph shows that the Operating activities of the company in the year 2021 is 435,
Investing activities is -78, Financing activities is -234 and Net cash flow of the company is
said to be 64

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TABLE 3: TABLE SHOWING PER SHARE RATIOS

YEAR BASIC EPS DIVIDEND PER SHARE

2021 10 76
2020 45 23
2019 32 34
2018 36 12
2017 56 54

CHART 3: CHART SHOWING PER SHARE RATIO

7000

6000

5000

4000

3000

2000

1000

0
2021 2020 2019 2018 2017

SALES OTHER INCOME

INTERPRETATION:

Formula to calculate:

Basic EPS = (Net income - preferred dividends) ÷ weighted average of common shares
outstanding during the period.

DPS = (total dividends paid out over a period - any special dividends) ÷ (shares outstanding).

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In the Financial year 2021, Basic Earnings per share of a company is -7 and Dividend per
share is exactly same compare to previous financial year.

TABLE 4: TABLE SHOWING MARGIN RATIOS

YEAR GROSS PROFIT MARGIN OPERTAING MARGIN NET PROFIT MARGIN

2021 4.55 8.69 13.57
2020 3.45 13.45 12.74
2019 -78 3.42 23.76
2018 11.23 18.95 32.87
2017 16.75 15.65 14.56

CHART 5: CHART SHOWING MARGIN RATIO

7000

6000

5000

4000

3000

2000

1000

0
1 2 3 4 5

YEAR SALES OTHER INCOME TOTAL INCOME

INTERPRETATION:

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The above graph shows that the Gross Profit margin of a company has decreased compare to
previous financial year. The Operating margin of a company in the year 2021 is 8.69. Net
profit margin is 13.57 which is decreased compare to the financial year 2020.

TABLE 5: TABLE SHOWING RETURN RATIOS

YEAR RETURN ON NET WORTH ROCE RETURN ON ASSETS

2021 6.765 8.79 8.76
2020 4.563 6.486 4.536
2019 12.37 4.357 12.46
2018 12.34 18.79 8.674
2017 13.25 16.57 6.474

CHART 5: CHART SHOWING RETURN RATIO

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3 4 5

YEAR SALES OTHER INCOME TOTAL INCOME

INTERPRETATION:

Formula to calculate:

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ROCE = EBIT/Capital Employed

RONW = Net Income / Shareholders’ Equity

ROA = Net Income / Average Assets

In Financial year 2021, It is showing that return on net worth is 6.765 and return on capital
employed is 8.79, The above graph shows that Return on assets has been gradually
decreasing comparing to previous financial year.

TABLE 6: TABLE SHOWING MARGIN RATIOS

YEAR CURRENT RATIO QUICK RATIO

2021 2.65 1.89
2020 3.98 1.76
2019 2.97 1.67
2018 1.33 1.54
2017 4.65 1.23

CHART 6: CHAT SHOWING

9000

8000

7000

6000

5000

4000

3000

2000

1000

0
1 2 3 4 5

YEAR SALES OTHER INCOME

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INTERPRETATION:

The formula for calculating a company’s current ratio, is

Current Ratio = Current Assets/Current Liabilities

In financial year 2021, The Current ratio of a company is 34.2 and it is slightly increased
compared to financial year 2020. Quick ratio is said to be increased with 0.34 compared to
previous financial year that is the quick ratio for the current financial year is 6.789.

TABLE 7: TABLE SHOWING TURNOVER RATIOS

YEAR ASSETS TURNOVER RATIO INVENTORY TURNOVER RATIOS

2021 34.5 6.789
2020 32.5 12.33
2019 13.46 23.45
2018 8.96 16.75
2017 1.243 14.36

CHART: CHART SHOWING TURNOVER RATIO

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9000

8000

7000

6000

5000

4000

3000

2000

1000

0
1 2 3 4 5

YEAR SALES OTHER INCOME

INTERPRETATION:

Above graph showing that the Asset turnover ratio of the company has been gradually
decreasing over the years, in current financial year the asset turnover ratio is said to be 51.20.
In financial year 2021, Inventory turnover ratio is 2.81. The inventory turnover ratio can be
calculated by dividing the cost of goods sold by the average inventory for a particular period.

CHAPTER-6

LEARNING EXPERIENCE

It was a great learning experience for me during my training period. I have learned many
things about the corporate culture. The internship training gave me many opportunities to
learn many things in a very short period of time. It almost felt like I was working for a
company.

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 The finance department cannot function effectively without the help and support of
HR, Marketing or operational department neither they can work individually. They
constantly need each other’s support. They work a team.

 The most important learning that has gained is interpersonal skills. As this skill can
either make or break the career.

 To adjust to different working places and condition and also learned the importance of
being assertive and not aggressive.

 Apart from these, Discipline and Punctuality are the other two values that have to be
imbibed in us for a successful career and a person.

BIBLIOGRAPHY

 I am making my project with help of the various secondary data used.

 Identified the various sectors of the company from the sites. Which are under as
follows:
 [Link]
 The financial data from the available from the sites:
 [Link]

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 The interpretation of the accounting and financing data of company which are
available from the books.
 The research papers of financial analysis are available from the internet.

ANNEXURE

BALANCE SHEET

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PARTICULAR MAR MAR MAR MAR MAR 17

21 20 19 18
  12 mths 12 12 mths 12 mths 12 mths
mths
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS

Equity Share Capital 258.92 258.77 258.62 258.62 258.36

TOTAL SHARE 258.92 258.77 258.62 258.62 258.36

CAPITAL

Reserves and Surplus 2,460.3 2,449. 2,491.82 3,524.23 3,306.45

7 81
TOTAL RESERVES 2,460.3 2,449. 2,491.82 3,524.23 3,306.45
AND SURPLUS 7 81

TOTAL 2,719.2 2,708. 2,750.44 3,782.85 3,564.81

SHAREHOLDERS 9 58
FUNDS

Minority Interest 47.33 57.96 86.32 305.28 151.43

NON-CURRENT
LIABILITIES

Long Term Borrowings 1,237.1 1,167. 934.75 848.71 756.63

0 52
Deferred Tax 9.64 27.14 40.84 70.75 142.88
Liabilities [Net]
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Other Long-Term 81.13 80.64 64.06 84.21 80.44

Liabilities

Long Term Provisions 29.98 48.63 49.72 61.82 40.72

TOTAL NON- 1,357.8 1,323. 1,089.37 1,065.49 1,020.67

CURRENT 5 93
LIABILITIES

CURRENT
LIABILITIES

Short Term 654.72 1,210. 1,601.37 2,263.78 2,025.34

Borrowings 64

Trade Payables 1,400.2 1,259. 1,357.99 2,147.22 1,426.52

6 86
Other Current 529.74 587.78 435.27 668.02 460.22
Liabilities

Short Term Provisions 11.53 16.69 12.88 25.79 16.82

TOTAL CURRENT 2,596.2 3,074. 3,407.51 5,104.81 3,928.90

LIABILITIES 5 97
TOTAL CAPITAL 6,720.7 7,165. 7,333.64 10,258.4 8,667.98
AND LIABILITIES 2 44 3

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 3,428.1 3,564. 3,268.13 3,660.01 3,523.81

7 65
Intangible Assets 147.74 243.66 126.82 165.19 130.48

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Capital Work-In- 77.95 112.47 260.10 89.74 49.69

Progress

FIXED ASSETS 3,654.2 3,921. 3,656.84 3,941.44 3,749.91

6 14
Non-Current 70.28 90.41 78.49 76.14 276.67
Investments

Deferred Tax Assets 7.80 35.58 11.29 220.51 224.21

[Net]

Long Term Loans And 0.68 0.94 1.34 2.57 2.77

Advances

Other Non-Current 68.51 52.98 69.09 341.35 313.13

Assets
TOTAL NON- 3,816.1 4,127. 3,843.24 4,719.03 4,584.61
CURRENT ASSETS 2 75

CURRENT ASSETS

Current Investments 0.00 0.00 0.00 0.00 0.00

Inventories 1,159.8 1,276. 1,598.43 2,619.38 2,382.80

5 83
Trade Receivables 1,091.6 1,047. 897.12 1,766.98 794.82
7 67
Cash And Cash 51.56 84.08 80.57 65.49 53.88
Equivalents

Short Term Loans and 50.16 39.51 162.99 163.56 122.21

Advances

Other Current Assets 551.36 589.60 751.29 923.99 729.66

TOTAL CURRENT 2,904.6 3,037. 3,490.40 5,539.40 4,083.37

ASSETS 0 69
TOTAL ASSETS 6,720.7 7,165. 7,333.64 10,258.4 8,667.98
2 44 3

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PROFIT AND LOSS ACCOUNT

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PROFIT & LOSS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

ACCOUNT OF
ARVIND (in Rs. Cr.)

  12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

REVENUE FROM 4,886.05 7,084.03 6,924.44 10,407.24 8,917.25

OPERATIONS [GROSS]

Less: Excise/Service 0.00 0.00 0.00 4.86 36.42

Tax/Other Levies

REVENUE FROM 4,886.05 7,084.03 6,924.44 10,402.38 8,880.83

OPERATIONS [NET]

TOTAL OPERATING 5,072.98 7,369.00 7,142.18 10,821.27 9,221.27

REVENUES

Other Income 51.59 55.24 83.74 62.62 81.69

TOTAL REVENUE 5,124.57 7,424.24 7,225.92 10,883.89 9,302.96

EXPENSES

Cost Of Materials 2,088.82 3,300.46 2,914.60 2,795.79 2,557.43

Consumed

Operating And Direct 39.86 73.84 102.63 14.24 12.87

Expenses

Employee Benefit Expenses 696.51 942.24 899.92 1,264.74 1,095.78

Finance Costs 224.51 236.89 220.14 257.85 288.34

Depreciation And 285.15 290.45 235.05 359.34 294.27

Amortisation Expenses
Other Expenses 1,351.73 1,924.71 2,162.24 3,317.81 2,969.96

TOTAL EXPENSES 5,120.03 7,203.95 6,880.68 10,473.50 8,867.07

PROFIT/LOSS BEFORE 4.54 220.29 345.24 410.39 435.89

EXCEPTIONAL,
6
EXTRAORDINARY
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ITEMS AND TAX
Exceptional Items -35.89 -50.21 -45.98 -22.72 -18.06