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Introduction
Arvind Mills was incorporated on 12th December June 1931, by Sanjay Lalbhai's grandfather, Kasturbhai Lalbhai, and his two brothers, Narottam and Chimanbhai, in Ahmadabad. When Sanjay Lalbhai took over the reins in 1975, Arvind Mills was at the crossroads. By the late 1990s, Arvind Mills was the third largest manufacturer of denim in the world, with a capacity of 120 million meters. Therefore, in the early 1990s, Arvind Mills initiated massive expansion of its denim capacity. With the best of technology and business acumen, Arvind has become a true Indian multinational, having chosen to invest strategically, where demand has been high and quality required has been superlative. The case provides an overview of the Arvind Mills' expansion strategy, which resulted in the company's poor financial health. It also discusses the companys political/legal, technological, future plans, especially international marketing strategies adopted by Arvind Mills
SWOT Analysis
high production capabilities. Presence across the textile value chain. Established domestic brands and licensed international brands.
Demand in domestic market Value in industrial wear segment Value in domestic garment retail market.
Competition fro countries like china. Decline in Indian textile export. Increasing raw material price.
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We also suggest arvind mills to go for product brand strategy instead of going for store brand in the domestic market. Due to new entrants in garment manufacturing, the price margins would be reduced for the store brands. In case of the Product brand, a single hit product will give them a significant advantage in the market. While we agree that a store brand will give a consistent source of revenue and ensure less risk, but the brand owners will capture the value. Arvind mills already have licensed brands from the global players, so it can leverage the existing retail and supply chain networks. It should launch its own brand in categories where there are no players, avoiding direct competition with the licensed brands. Arvind mills should continue to focus on product and process innovation. A fixed portion of the sales should be set-aside for R&D. it should develop design capabilities by tapping the talent pool from reputed institutes. It should also tie-up with fashion houses to keep pace with the fashion trends and developing its inhouse design capabilities.
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