Arvind Mills
Encyclopedia
Arvind Mills, the flagship
company of the Lalbhai Group, is one of India
's leading composite
manufacturer of textiles. Its headquarters
is in Ahmedabad
, Gujarat, India. It manufactures a range of cotton
shirting, denim
, knits and bottomweights (Khaki
s) fabrics. It is 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, Megamart, which stocks company brands.. The original budget for the company totaled $ 55 thousand, at present it is $ 500 million Arvind feature is that its enterprises are equipped with highly advanced equipment of a full cycle – from painting the fiber to the finished product.
, Narottambhai Lalbhai and Chimanbhai Lalbhai one of the leading families of Ahmedabad.
In year of 2011 Arvind limited that enter in to Arvind infrastructure. It also has successfully run the Knowledge Academy (Ahmedabad University) since 2008.
The company came up with a massive debt-restructuring plan for the long-term debts being taken up in February 2001. This complex financial restructuring exercise, which involved several domestic and international lenders, is considered to be the benchmark and a case study in India. The restructuring was overseen by Mr Jayesh Shah, CFO and advised on by a JP Morgan Hong Kong team, led by Mr Ahmad Ayaz.
Flagship
A flagship is a vessel used by the commanding officer of a group of naval ships, reflecting the custom of its commander, characteristically a flag officer, flying a distinguishing flag...
company of the Lalbhai Group, is one of India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's leading composite
Composite material
Composite materials, often shortened to composites or called composition materials, are engineered or naturally occurring materials made from two or more constituent materials with significantly different physical or chemical properties which remain separate and distinct at the macroscopic or...
manufacturer of textiles. Its headquarters
Headquarters
Headquarters denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the top of a corporation taking full responsibility managing all business activities...
is in Ahmedabad
Ahmedabad
Ahmedabad also known as Karnavati is the largest city in Gujarat, India. It is the former capital of Gujarat and is also the judicial capital of Gujarat as the Gujarat High Court has its seat in Ahmedabad...
, Gujarat, India. It manufactures a range of cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
shirting, denim
Denim
Denim is a rugged cotton twill textile, in which the weft passes under two or more warp threads. This produces the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. Denim has been in American usage since the late 18th century...
, knits and bottomweights (Khaki
Khaki
This article is about the fabric. For the color, see Khaki . Kaki, another name for the persimmon, is often misspelled "Khaki".Khaki is a type of fabric or the color of such fabric...
s) fabrics. It is 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, Megamart, which stocks company brands.. The original budget for the company totaled $ 55 thousand, at present it is $ 500 million Arvind feature is that its enterprises are equipped with highly advanced equipment of a full cycle – from painting the fiber to the finished product.
History and operations
Arvind Mills was established in 1931. It was founded by the three brothers Kasturbhai LalbhaiKasturbhai Lalbhai
Kasturbhai Lalbhai was an Indian industrialist. He was widely perceived as a nationalist businessman akin to G. D. Birla.- Early life :...
, Narottambhai Lalbhai and Chimanbhai Lalbhai one of the leading families of Ahmedabad.
- 1931 – Arvind Mills Ltd. is incorporated with share capital Rs.2525000 ($55000) in Ahmedabad. Products manufactured are dhoties, sarees, mulls, dorias, crepes, shirtings,bra. panties, coatings, printed lawns & voiles cambrics, twills gaberdine etc.
- 1987 – The Company took up a modernisation programme to triple the production of denim cloth and to produce double yarnYarnYarn is a long continuous length of interlocked fibres, suitable for use in the production of textiles, sewing, crocheting, knitting, weaving, embroidery and ropemaking. Thread is a type of yarn intended for sewing by hand or machine. Modern manufactured sewing threads may be finished with wax or...
fabrics for exports. The new product groups identified were the indigoIndigoIndigo is a color named after the purple dye derived from the plant Indigofera tinctoria and related species. The color is placed on the electromagnetic spectrum between about 420 and 450 nm in wavelength, placing it between blue and violet...
dyed blue denim, high quality two-ply fabrics for exports, and special products such as butta sarees, full voils and dhoties. - 1991 – Arvind reached 100 million meters of denim per year, becoming the fourth largest producer of denim in the world.
- 1992 – The Company increased the production of denim cloth by 23,000 tonnes per day by modernising the plant located at Khatraj of Ankur Textiles.
- 1993 – The Company proposed to expand the denim manufacturing capacity by 85,00,00 metres per annum. The Company also proposed to set up a new composite mill for producing annually 120 lakh metres of high quality shirting fabrics to be marketed in the domestic as well as international markets.
- 1994 – The Company's operations were divided into 3 units viz., Textile Division, telecom division and garments division.
- 1995 – The performance of textile division was significantly affected due to an unprecedented rise in cost of cotton.
- Garment division launched ready to stitch jeans pack under the brand `Ruf & Tuf`.
- 1997 – The marketing and distribution network of `Newport` brand was strengthened and the relaunched `Flying Machine' and 'Ruggers` brand were strengthened.
- The Company reported a fire in the goods godown & folding packing department in Naroda RoadNarodaNaroda is a suburban town in Bapunagar, northeast of Ahmedabad, Gujarat, India. With the establishment of the Naroda Industrial Area in the 1980s, the town flourished; it was incorporated into Ahmedabad in 1996...
unit of the company. - Arvind Mills sets up the anti-piracyPiracyPiracy is an act of robbery or criminal violence at sea. The term can include acts committed on land, in the air, or in other major bodies of water or on a shore. It does not normally include crimes committed against persons traveling on the same vessel as the perpetrator...
cell for the first time in India to curb large scale counterfeiting of their highly successful brands Ruf & Tuf and Newport jeans. - Arvind Mills adopts the franchisee system for the manufacture and distribution of Ruf and Tuf jeans.
- Arvind Fashions, doubles its capacity in the state-of-the-art manufacturing facility in Bangalore to produce LeeLee (Jeans)Lee is a brand of denim jeans, first produced in 1889 in Salina, Kansas. The company is owned by VF Corporation, the largest apparel company in the world. Its headquarters is currently in Merriam, Kansas, just outside of Kansas City, Missouri...
jeans. - 1997 was also the year when arvind mills started facing serious troubles financially
- The Company reported a fire in the goods godown & folding packing department in Naroda Road
- 1998 – Arvind Mills emerges as the world's third largest manufacturer of denim.
- Arvind Mills goes live with SAP R/3SAP R/3SAP R/3 is the former name of the main enterprise resource planning software produced by SAP AG. It is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing.- History of...
ERP package in April 1998 in their new manufacturing units.
- Arvind Mills goes live with SAP R/3
- 1999 – Arvind Mills sets a two-month deadline for hiving off its garments division into a separate company and sale of its real estate in Delhi.
- 2000 – CRISILCRISILCredit Rating and Information Services of India Ltd. a global analytical company providing ratings, research, and risk and policy advisory services....
downgrades the debentureDebentureA debenture is a document that either creates a debt or acknowledges it. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note...
issues of Arvind, indicating that the instruments were in default. - 2001 – Arvind Mills defaults on a $125 million floating rate note issue and puts forward a debt restructuring proposal that could significantly reduce its debt burden and sharply improve its financial health.
- Arvind Mills posts a net loss of Rs 44.59 crore for the quarter ended September 30, 2001.
- 2003 – For the fourth quarter, Arvind Mills witnesses 280% growth in the net profit
- Arvind Mills Ltd is assigned a `P1+` rating by CRISIL, which indicates a very strong rating for their commercial paper.
- 2004 – Company turns itself around showing remarkable improvement in financial performance.
- 2005 – For the fourth quarter in a row, Arvind Mills has managed to post a profit growth in excess of 80 per cent.
- Arvind Mills decides to buy entire stake in Arvind Brands from ICICIIčićiIcici is a small place located in the north-east part of Istria, Croatia . It is located under a mountain Učka, on the north part of the Adriatic Sea....
Ventures.
- Arvind Mills decides to buy entire stake in Arvind Brands from ICICI
-
- Arvind Mills does not distribute dividends to its share holders consistently.
Businesses
- FabricTextileA textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
- Denim
- Shirtings
- KhakiKhakiThis article is about the fabric. For the color, see Khaki . Kaki, another name for the persimmon, is often misspelled "Khaki".Khaki is a type of fabric or the color of such fabric...
s - Knitwear
- VoileVoileVoile is a soft, sheer fabric, usually made of 100% cotton or cotton blends including linen or polyester. The term comes from French, and means veil. Because of its light weight, the fabric is mostly used in soft furnishing. Full-length curtains in hot countries are made with voile and used as...
s
- Garment Exports
- ShirtShirtA shirt is a cloth garment for the upper body. Originally an undergarment worn exclusively by men, it has become, in American English, a catch-all term for almost any garment other than outerwear such as sweaters, coats, jackets, or undergarments such as bras, vests or base layers...
s - JeansJeansJeans are trousers made from denim. Some of the earliest American blue jeans were made by Jacob Davis, Calvin Rogers, and Levi Strauss in 1873. Starting in the 1950s, jeans, originally designed for cowboys, became popular among teenagers. Historic brands include Levi's, Lee, and Wrangler...
- Shirt
- Arvind Brands (owned)
- Flying Machine
- Newport
- Ruf & Tuf
- Excalibur
- Arvind Brands (licensed)
- Arrow
- LeeLee (Jeans)Lee is a brand of denim jeans, first produced in 1889 in Salina, Kansas. The company is owned by VF Corporation, the largest apparel company in the world. Its headquarters is currently in Merriam, Kansas, just outside of Kansas City, Missouri...
- WranglerWrangler JeansWrangler is a manufacturer of jeans and other clothing items. The brand is owned by the VF Corporation, who also own Lee, JanSport and The North Face, among others. Its headquarters is in downtown Greensboro, North Carolina, with production plants in a variety of locations throughout the world...
- Gant U.S.A.Gant U.S.A.GANT is a formerly Swedish but currently Swiss clothing brand of American heritage launched in New Haven in 1949. The brand has since then been further developed, being influenced by European styles, and is now a global clothing business...
- SansabeltSansabeltSansabelt is a brand of men’s trousers introduced in 1959 by Jaymar-Ruby, an Indiana-based clothing company. The trousers have a wide elastic band sewn into the waist, which is intended to make a belt or suspenders unnecessary, hence the name ....
- IzodIzodIzod is a clothing company that produces dressy-casual clothing and sportswear for men and women, also including fragrances, and accessories. Similar to brands such as Gant U.S.A., Lacoste, and Polo Ralph Lauren, it is part of the Phillips-Van Heusen Company, headquartered at 200 Madison Ave., New...
- Cherokee(Not sure)
In year of 2011 Arvind limited that enter in to Arvind infrastructure. It also has successfully run the Knowledge Academy (Ahmedabad University) since 2008.
Financial restructuring
In the mid 1990s, Arvind Mills undertook a massive expansion of its denim capacity even though other cotton fabrics were slowly replacing the demand for denim. The expansion plan was funded by loans from both Indian and overseas financial institutions. With the demand for denim slowing, Arvind Mills found it difficult to repay the loans, and thus the interest burden on the loans shot up. In the late 1990s, Arvind Mills ran into financial problems because of its debt burden, and it incurred huge losses in the late 1990s.The company came up with a massive debt-restructuring plan for the long-term debts being taken up in February 2001. This complex financial restructuring exercise, which involved several domestic and international lenders, is considered to be the benchmark and a case study in India. The restructuring was overseen by Mr Jayesh Shah, CFO and advised on by a JP Morgan Hong Kong team, led by Mr Ahmad Ayaz.