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   Interview - Arvind-mills

fibre2fashion:

In terms of cost advantage, does Arvind Mills see global leadership mantle falling on its shoulders? What value-adds are being done in the company's textile chain?

Mr. Lalbhai

Forevision and Technology has brought Arvind to be one of the top three producers of Denim in the world, and on its way becoming the Global Textile Conglomerate. Arvind is already making its presence felt in Shirting's, Knits and Khakhis fabrics apart from being all set to create ripples in the ready to wear Garments world over. Today Arvind Mills is the largest integrated textile company and among the few in the world. With several cost advantages in cotton, labour, etc,

With its presence across the textile value chain, the company endeavors to be a one-stop shop for leading garment brands. Arvind Mills is among the most competitive entities globally and is uniquely poised to take advantage of the global textile trade and also in domestic market.

 
fibre2fashion: What innovations or products do you expect to hold sway over the global textiles and apparel industries in the near future?
Mr. Lalbhai

We produce more than 50 varieties of denim for our international customers. Arvind Mills has dedicated R&D team comprising of textile professionals including international consultants. The company produces over 4 million metres of denim in product development and R&D develops 50 new products each month.

Arvind Mills has been a quality supplier of fabrics in denim and shirtings to some of the well-known international brands. Over the years, Arvind has developed several value added and differential fabric range which has been well accepted by the clients. As a result, Arvind has been successful to associate with premium brands in international brands commanding higher realization besides receiving numerous accreditations. The company is Asia's first fabric manufacturing unit to receive an ISO 14001 certification and accreditations by leading apparel companies in the world.

We have dominant share in the domestic market (upwards of 60%) in denim and confidant of growing the same. The company has reaped good benefits from introduction of value added denim fabric in domestic and abroad. At the same time Arvind has derisked the geographical spread in supply of denim, whereby supplies are now to over 60 countries.

 
fibre2fashion: Arvind Mills is an acknowledged leader in the denim world. Could you trace the roots of its successes or failures that have endured so far, since its establishment almost 75 years ago?
Mr. Lalbhai

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. During the Swadeshi Movement of boycotting fine and superfine fabrics, the Lalbhais sensed an opportunity for Indian made fine and superfine fabrics. The three brothers, Kasturbhai, Narottambhai and Chimanbhai decided to put up a mill to produce superfine fabric. And a company called Arvind Mills was born in 1931.

With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.

In the mid 1980's 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. There could be no better time, concluded the Management, for a rethink on strategy. 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 Arvind's markets shifted from domestic to global. People the world over were shifting from synthetic to natural fabrics. Cottons were the largest growing segments. Thus in 1987-88 Arvind entered the export market for two sections- Denim for leisure and fashion wear and high quality fabric for cotton shirtings and trousers. By 1991 Arvind reached 100 million meters of Denim per year and it was the third largest producer of denim in the world.

In 1997 Arvind set up a state-of-the-art shirting, gabardine and knits facility, the largest of its kind in India, at Santej. With Arvind's concern for environment a most modern affluent treatment facility with zero affluent discharge capability was also established.

Year 2005 is a watershed year for textiles. With the mulitifiber agreement getting phased out and the disbanding of quotas, international textile trade is poised for a quantum leap.

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 it's vision on becoming the largest apparel brands company in India.

 
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Published on : 12 Sep 2005
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