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Arvind Mills - Core Competencies

Arvind Textiles is India's largest denim manufacturer with a strong portfolio of domestic and international brands. It aims to achieve Rs. 12,000 Cr. in revenue over the next five years through investments in textile parks and garment manufacturing. Arvind provides complete solutions from fabric to retail and plans to partner with sports brands to meet growing demand for gym wear. It has opportunities to expand its Megamart stores and global brand reach while threats include rising costs, competition, and fakes. Revenue is expected to grow 10-12% in the next two years through Rs. 1500 Cr. in new investments.

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Kushagra Varma
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403 views4 pages

Arvind Mills - Core Competencies

Arvind Textiles is India's largest denim manufacturer with a strong portfolio of domestic and international brands. It aims to achieve Rs. 12,000 Cr. in revenue over the next five years through investments in textile parks and garment manufacturing. Arvind provides complete solutions from fabric to retail and plans to partner with sports brands to meet growing demand for gym wear. It has opportunities to expand its Megamart stores and global brand reach while threats include rising costs, competition, and fakes. Revenue is expected to grow 10-12% in the next two years through Rs. 1500 Cr. in new investments.

Uploaded by

Kushagra Varma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CORE COMPETENCIES

VISION: OF EXCELLENCE IN ALL ENDEAVORS; OF MUTUAL BENEFIT AND


PROSPERITY; OF MAKING THE WORLD A BETTER PLACE TO LIVE IN.

Continuous Products & Advance Material:- Technical capabilities includes Speciality fabrics
Technical Innovation processing , stretch bonding, coating, lamination, speciality garment
manufacturing among many others.
Customer Orientation  Arvind builds its brand image through CSR activities such as Slum
Rehabilitation, Empowering Tribal Women, Health and Education.
 Arvind Fashions portfolio consists of 27 distinguished brands across
all format of retails.
 Arvind is present 192 cities and towns across India with 1300
standalone stores and close to 5000 departmental and multi-brand
stores.

Cost Effectiveness Lower prices in comparison to the competitors

CAPABILITIES

● Arvind has set a target of Rs,12,000 Cr. over the next five years in its textile business. To
achieve this target Arvind Textile is stepping up its effort by investing in textile parks and
making garments.

● Arvind is not only selling the fabric, but it is providing complete solution. The trend of
denim is going down in India but at the same time people are wearing more and more of
their gym wear as outwears.

● To meet this growing demand of gym wear, Arvind is planning to associate with Reebok,
Adidas and other such brands with the range Arvind provides. To support B2C business
for Arvind fabric store they are strategizing this whole new Arvind store, which will be
just like Raymonds - where it will sell fabrics, sell ready-to-wear clothes and do
customized tailoring under the Arvind brand.

● With the introduction of the GST, the unorganized market is becoming more organized
and the trend of formal becoming more casual. Arvind has the potential to grow with
brands like US Polo, Flying Machine, GAP and Aeropostale.

● Arvind has a huge opportunity to grow in Children’s wear as well as the undergarment
industry.
● Arvind had a first mover advantage as it was one of the first few to embrace Omni-
channel and a developed home-grown platform.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

● The largest manufacturer of Denim ● Reach of Arvind Megamart stores in


jeans in India limited in India as it is present in big
● Strong portfolio of brands in both cities only
domestic and international market ● Global penetration is limited
● Arvind Textiles runs India's largest compared to other brands
Value Retail Chain – Megamart with ● High brand switching as the presence
over 200 stores of Indian and International brand
● Economies of scale through complete offers more offering to customers
integration ● Lack of efforts to build brand equity.
● Use of latest manufacturing tools in the For example: Park Avenue of
production of denim and clothing Raymonds limited is more famous
which increases production than Flying Machine of Arvind
● CSR activities like Slum Rehabilitation, Limited
Empowering Tribal Women etc. have
enhance the brand image

OPPORTUNITIES THREATS

● Increase reach in India by increasing ● Increasing competition from Indian as


Megamart stores in small cities and well as Internationals brands
rural areas ● Rise in raw material price
● Global expansion and reach of brand to ● Cheap imports from other countries,
increase sales and pirated/fake products
● Meet the increase in global demand for ● High brand switching due to presence
denim fabrics of both domestic and international
● Growth in garment industry through brands
Product diversification ● Stiff competition from small town
● Swift growth in target group as well as stores and specialty stores
higher income group
Arvind Textiles strong performance of textile business has been based on four foundational
blocks

 Revenue growth is expected between 10-


12% in next 2 years

 Investments in garment manufacturing


facilities, advanced processing and
technology driven innovations

 Rs.1500 Cr. is planned to be invested over


the next 3 years

REFERENCES
https://www.arvind.com/sites/default/files/field_investor_updates_file/Arvind%20Strategy
%20Update%20-%20Final.pdf
https://www.arvind.com/businesses/advanced-materials

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