Arvind Ltd.

1. Introduction
1.1 About Arvind
1930 was a year the world suffered a traumatic depression. Companies across the globe began closing down. In UK and in India the textile industry in particular was in trouble. At about this time, Mahatma Gandhi championed the Swadeshi Movement and at his call, people from all India began boycotting fine and superfine fabrics, which had so far been imported from England. In the midst of this depression one family saw opportunity. The Lalbhais reasoned that the demand for fine and superfine fabrics still existed. And any Indian company that met this demand would surely prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai decided to put up a mill to produce this superfine fabric and a company called Arvind Mills was born with a share capital of Rs 2,525,000 ($55,000). In the mid 1980s the textile industry faced another major crisis. With the power loom churning out vast quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of closure. Yet that period saw Arvind at its highest level of profitability. The Arvind management coined a new word for it new strategy Renovision. It simply meant a new way of looking at issues, of seeing more than the obvious and that became the corporate philosophy. The national focus paved way for international focus and Arvinds markets shifted from domestic to global, a market that expected and accepted only quality goods. By 1991 Arvind reached 1600 million meters of Denim per year and it was the third largest producer of denim in the world. Year 2005 is a watershed year for textiles. With the multifiber agreement getting phased out, Arvind has carved out an aggressive strategy to verticalize its current operations by setting up world-scale garmenting facilities and offering a one-stop shop service, of offering garment packages, to its international and domestic customers. With the Indian economy poised for rapid growth, Arvind brands with its international licenses of Lee, Wrangler, Arrow and Tommy Hilfiger and its own domestic brands of Flying Machine, Newport, Excalibur and Ruf & Tuf, is setting its vision on becoming the largest apparel brands company in India. In the year 2008 Company launches 'Megamart', now India's largest value apparel-retail chain Last year in 2012 Arvind Mills tied-up with Birla Cellulose andacquired Debenhams, Nautica and Next Business in India.

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1.2 Board of Directors Mr. Sanjay S. Lalbhai

(CHAIRMAN AND MANAGING DIRECTOR)

Mr. Sanjay S. Lalbhai, 58 years, is the Chairman and Managing Director of the Company. He is a Science Graduate with a Master's degree in Business Management and has been associated with the Company for more than 33 years.

Mr. Jayesh Shah

(DIRECTOR AND CHIEF FINANCIAL OFFICER)

Mr. Jayesh K. Shah, 52 years, is the Wholetime Director with the designation of Director and Chief Financial Officer of the Company. He is a Commerce Graduate and a Chartered Accountant and has been with the company since 1st July, 1993.

Mr. Punit Lalbhai

(EXECUTIVE DIRECTOR)

Mr. Punit Lalbhai, 30 years, is an MBA from INSEAD (France) specializing in Strategy and General Management, along with Post-Graduate degree in Masters of Environmental Science from Yale University, and a Bachelors degree in Science (Conservation Biology) from University of California, USA.

Mr. Kulin Lalbhai

(EXECUTIVE DIRECTOR)

Mr. Kulin Lalbhai, 27years, is an MBA from Harvard Business School (USA), along with a Bachelors degree in Science (Electrical Engineering) from Stanford University, USA.

Other Directors Dr. Bakul H. Dholakia

(NON-EXECUTIVE AND INDEPENDENT DIRECTOR)

Dr. Bakul H. Dholakia is a Gold Medalist from Baroda University and he has a Doctorate in Economics. He has 41 years of professional experience including 33 years at IIM, Ahmedabad. He has been a consultant to various national and international organizations. He has also been a member of the Jury for various Corporate Excellence Awards and Selection Committees for CEOs.

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Mr. Munesh Khanna

(NON-EXECUTIVE AND INDEPENDENT DIRECTOR)

Mr. Munesh Khanna, 50 years, is a Chartered Accountant from ICAI. He has been with the Company since 27th October, 2007. He has over 20 years of experience in the financial, regulatory and taxation domain

Ms. Renuka Ramnath

(NON-EXECUTIVE AND INDEPENDENT DIRECTOR)

Ms. Renuka Ramnath is the Founder and Managing Director of Multiples Alternate Asset Management Pvt. Ltd. which seeks to manage circa $450 million of Indian and International capital. Indias most Powerful CEOs (Economic Times) and in the Top 25 Non Bank Women in Finance (US Bankers global list).

Mr. Prabhakar R. Dalal

(NOMINEE DIRECTOR OF EXIM BANK OF INDIA)

Mr. Prabhakar R. Dalal is the Executive Director of EXIM Bank of India having qualifications of M.Com, LL.B, CAIIB and PGDFERM and a fellow of the Indian Institute of Banking and Finance (FIIBF).

1.3 Divisions Of Arwind Ltd.

Arwind is diversified into following areas:i. Denims ii. Woven and knitted fabrics iii. Garment Exports iv. Advanced materials v. Arvind Brands vi. Mega Mart Retail vii.The Arvind Store viii. Engineering ix. Telecom xi. Real Estate
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1.4 Arvind Brands Arvind is amongst a few organizations worldwide with a portfolio of brands that are as distinctive and relevant across diverse consumers. At Arvind, brands work across multiple channels, price points and consumer segments. The expanse of the Arvind brandscape is spread across the Indian market with around 273 standalone brand stores in addition to 975 counters selling through key accounts and multibrand outlets across India. (http://www.arvindmills.com/division/arvindbrands.htm) Own Brands Ruff and tuff Flying machine Excalibur Newport University Licensed brands Gant IZOD Arrow U.S. Polo Chrokee Joint Venture LEE Tommy Hilfiger Wrangler

For the purpose of our study, we have selected Arrow as our brand.

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Arrow
1. Introduction
Arrow is one of the leading premium readymade brands in India. This international brand has a rich history dating back to 1851. Globally Arrow brand belonged to Cluett Peabody & Company, Inc, but in 2004 it was acquired by Phillips-Van Heusen Corporation in a $70 million deal. In India, the brand is manufactured and marketed by Arvind Brands. At Arrow, the roots are firmly established as a fashion leader in mens apparel. However, today Arrow has been transformed into Gentleman lifestyle brand with a broad assortment of mens, womens, and childrens apparel and apparel related products available in over 90 countries worldwide. At Arrow, through research and development, everyone is constantly addressing the changing needs and desires of the consumer, resulting in brand awareness and consumer loyalty. The success of Arrow can be attributed to the brands rich heritage and the companys attention to detail over the years. Arrow, predominantly a shirt brand, came to India in 1993. The brand which was known for its American heritage was an instant success in India too. This premium brand thrives on the international image and Arvind nurtured this brand by making the brand exclusive. The brand is expensive and has excellent quality and finish. Arrow is famous for its ultra- formal shirts. Consumers like to show-off the brand and the famous Arrow brand mark near the cuff. The brand promotes itself using print media.

2. Heritage of Arrow
1820 -The story begins in a tiny home in Troy, New York where Mrs. Hannah Montague creates the first ever detachable collar 1851-Ebenezer Brown begins manufacturing collars in the back of his general store. The company starts out as Maulin & Blanchard and finally becomes Cluett, Peadbody & Co. in 1894. 1905- .C. Leyendecker is hired by Cluett, Peabody & Co. He creates the famous Arrow Collar Man ads. The Arrow Collar Man becomes the symbol of the ideal American gentleman. At its peak, the company receives 17000 fan mails a day. 1918- The company's line of collars expands to over 400 styles ranging from the smallest (Tom Thumb) to the largest collar ever produced (Russian Giant Man). Today Arrow continues to make different styles of collars for the modern man 1923- The Arrow Collar Man becomes the inspiration behind the 1923 Broadway play, 'Helen of Troy, New York'.
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1928- Sanforization, a patented shrinking process is developed by Sanford Cluett to prevent shrinkage of shirts after washing. 1930- n the 1930s, Arrow successfully enters the Sportswear market with new designs. In the modern times, this is available as Arrow Sport with design inspirations from the Ivy League and Nautical theme. 1960- Arrow's conventional dress shirts are replaced by boldly striped shirts with white collars, vivid colors and rich new pattern 1970- In the 1970s and 80s, Arrow redesigns its line to appeal to the young, urban professional men of the decade 1993- Arrow comes to India as a licensed brand of Arvind ltd. 2004- Arrow becomes a part of the Phillips Van Heusen Corporation as the latter pays $70 million for this iconic American company 2010- Arrow was selected as a Superbrand in India for the year 2009-10. 2013- Arrow launches Superluxein India which is a seamless, wrinkle-free and limited edition shirt.

3. Target Group
A target group, or target audience is the primary group of people that, usually in an advertising campaign, is aimed at appealing to. A target audience can be people of a certain age group, gender, marital status, etc. (ex: teenagers, females, single people, etc.) Discovering the appropriate target market(s) to market a product or service to is one of the most important stages involved with market research. Without knowing the target audience, a company's advertising and the selling efforts can become difficult and very expensive. Target Audiences are set to focus on different groups: Adults, teens and children. It is essential to become familiar with the target market, their habits, behaviours, likes, and dislikes. Markets differ in size, assortment, geographic scale, locality, types of communities, and in the different types of merchandise sold and because of the many variations included in a market it is essential, since one cannot accommodate everyones preferences, to know exactly whom we are marketing to and the specific fondness of that market. The target Group for Arrow is successful professionals around the age of 28+. These are the people who have experienced their share of satisfactions, delights, dissatisfactions, switchovers while buying apparel suited to their lifestyles and now have found a brand that fulfils all their apparel demands. These are the people from the urban sector of our society and dont mind paying a premium for their desired clothes.
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To them quality, comfort and appeal supersedes the price. They are the ones who, when younger, saw their bosses wearing a shirt with an A logo near the cuffs and made it a point to one day wear the same shirt. They are the ones who easily associate themselves with the Arrow heritage and have a trust on the brand. They follow the adage like father, like son and recommend Arrow to their next generation. They know, what they want, why they want it, and Arrow delivers it!

The Products
Arrow, simply put, is a lifestyle brand offering an extensive range of formal, relaxed and fashion wear and its sub-variants such as relaxed luxury, urban, casual chic, sports et al. Over the years, sartorial tastes have gradually veered towards the informal with the young, sporty look making the fashion statement today. In recognising this trend, Arrow paid tribute to it in its after-hours collection, made especially for the man who desires comfort and style both in the board room and out of it. The seeds sown by this range were reincarnated in 2000 as Arrow Sport. This exceptional collection, revitalised each season, now embraces even Tshirts, sweaters and accessories besides shirts, trousers and jackets. The immense success of the Sports collection can be gauged from the fact that it now comprises nearly 25% of Arrows turnover. The turn of the century saw the market getting even more youthful with a discernible bias towards health and physical fitness. V-shaped bodies were increasingly getting in vogue. Arrow developed the trendy, slim-fit Urban range to cater to these young needs. Fashionable, formal workplace and evening wear comprising shirts, trousers, T-shirts, sweaters and jackets in a range of fabrics, cuts and washes were rolled out and struck an instant chord with the audience. Arrow continues to develop a range each season that picks colours and styles from the fashion capitals of the world and lays them for its consumers in this country. Initially the garments were designed by the Italian designer Renato Grande, but today it is all done in the Bangalore head office by an elite team of skilled designers. Arrows collection comprises of: 1851 & Presidents collection Made from superfine 100% cotton fabric, with detailing like Mother of Pearl buttons, 1851 & Presidents collection are Arrows signature ranges that define comfort and style.

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Kennedy collection This collection is inspired by the personal dressing style of the American legend John F. Kennedy. Every garment in the Kennedy collection lives upto the hallowed name it bears. Fabrics are sourced from the finest mills around the world and are stitched to exceptional sartorial standards.

White Label Synonymous with timeless elegance, Arrows premium formal-wear range combines stylish cuts and subtle designs. This is a collection that truly meets the modern gentlemans sense of individuality and style. Autopress The next level of shirts as Arrow states it. 100% cotton and 100% wrinkle-free.

Blue Label This is an exclusive range of formal work-wear in an array of colours and sharp styles. Suits Arrows Italian suits are made from fine blends of silk, cashmere and wool. All suits and jackets are internationally styled with details like hand-stitched lapels and fashionably cut side vents that add a touch of elegance to these slim-cut suits. Urban Slim fits and sharp cuts give Arrow Urban a fashionable yet elegant form. This collection is specially made to fit a fast-paced, metropolitan lifestyle.

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Sport Elegant leisure-wear made from washed and structured fabrics, Arrow sports celebrates the coming together of a casual attitude Arrows signature style. Womens wear A mix of trendy ensembles and classic must-haves. The highlights of SS 10 were finely crafted apparel in shades of red purple and green. Innerwear Includes a range of briefs, boxers and vests in premium, classic and sports style. Accessories A range of finely crafted accessories including bags, belts, cufflinks, ties and wallets.

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