Mills Ltd

Prepared By: Chetan Panara Jay Ajudia Kapil Rajput Kaushal Dhakan Kulvinder Singh Dhaliwal Nikunj Patel Pranay Chauhan

INDUSTRY ENVIRONMENT
Indian textile industry and Market Size
Textiles sector contributes to 14 per cent of industrial production 4 per cent of National GDP 10.63 per cent of country's export earnings Market Size India's share of global textile exports is expected to increase from the current 4% to around 7% over the next three-years

Growth Rate
3-4 percent during the last six decade 9-10 percent during last five year

Scope of rivalry

Raymond India Welspun India Ltd Alok Industries Indian Rayon Gokaldas Exports

General Environment of Textile Industry

Technology Demographic Trend Economic Trends Political and Legal Socio Cultural Global

Porter Five forces

Risk of new entry by potential competitor Brand Loyalty Absolute cost Advantage Largest producer of jute Second largest producer of silk Third largest producer of cotton, accounting for nearly 16% of global production Third largest producer of cellulosic fibre/yarn Fifth largest producer of synthetic fibres/yarn Eleventh largest producer of wool Customer switching cost

Cont..
The extent of rivalry among established firms
Exit Barrier Industry Demand Industry competitive structure

The bargaining power of buyers

The bargaining power of supplier The threat of substitute product

Industry Analysis
Industry Attractiveness Favourable factor conditions Favourable domestic market Government initiatives to promote investment Product development and design Technology Up radiation Current Strategies De-risking the business model Integration Product Mix Diversification

Internal Environment
Financial performance of the company

World class manufacturing capabilities Multiple Brand Stores Department Stores and Malls Exclusive Brand Outlets Utilities Technological Resources
ANUP Engineering ARVIND ACCEL

Resources
HR vision
Be The Foundation That Integrates Culture, Vision & Values , Creates an Environment That facilitates The Maximization of Human Potential.

Endeavour
To select, train and coach people to obtain higher responsibilities. To nurture talent to build leaders for tomorrow's corporation. To reward, celebrate and activate all intellectual business contributions.

Cont
Innovation Resources
o o o o Fire Protection Fabrics Chemically treated Flame Retardant Fabrics Inherent Fire Resistant Fabrics High Tech Applications

o o o o o o

Filtration Fabrics Anti-Ballistic Fabrics Nylon Fabrics Carbon-Glass-Aramid Fabrics

Core Competencies
Shuttle looms for Selvedge denim Name selvedge and Stretch selvedge Unique Fibers like Excel, Jute, Silk, Linen Natural Indigo and Vegetable dyes Unique concept products like Indigo voiles & Handspun denim Organic, BCI & Sustainable denim

Value Chain Analysis

Primary activities
Spinning department Weaving department Dyeing department Finishing department

Supportive Activities
Quality Assurance department

laboratory
Cotton laboratory Chemical Testing Labortary Colour Quest Labortary Calibration Laboratory

Inspection Department ISO & EMS Department Marketing Department Human Resource Department

Strengths Strong portfolio of domestic and international brand Economies of scale through complete integration Latest Manufacturing tools Wide geographical presence Weakness Less productive machines in process Presence in only big city Not doing enough to build brand equity

SWOT
Opportunities

Changing retail scenario

Global demand of denim fabric Price Competitiveness Cheap Labor Debt Restructuring Product Diversification Forward Contracts for Naphtha and Cotton Duty waive-off after post 2005 liberalization scenario

Threats
Competition from global player Decline in exports Cheap import from china ,Bangladesh, Thailand Rise in raw material price

 Business level /competitive strategies

Improve cash management minimize \borrowing Improve collection, reduce receivables Improve capacity utilization Increase inventory turns Improve customer retention and loyalty Gain/enhance market share Enable cross sell up capabilities Improve product and customer profitabilitys Enable and enhance channel partner effectiveness

Implementation of Strategic Actions

Corporate Level Strategy

To become the market leader Support strategic planning Product portfolio optimization Improve capital budgeting and allocation process Enhance innovativeness and change management capabilities

Cont.
Diversification Unrelated Diversification

M&A
Restructuring Corporate Governance measures

Ethics and Corporate Social Responsibility

Education Upgrading slums Vocational Training Medical Care And Research Education Professional, Cultural, And Research Bodies Human Development Two trust run by Arvind ltd.:
Sharda trust Lalbhai rural development fund

Thank You!