The report investigates Arrived Mill, a prominent participant in Gujarat's textile industry, Mohammedan. Using secondary data from official company websites and other sources, the analysis focuses on Arrived Mills' denim sector. It provides an introduction to India's textile industry and its crucial role in the country's economic growth. Furthermore, the report emphasizes the importance of Gujarat's textile industry and highlights Arrived Mills as a key player in this sector.
The textile industry is crucial for the economy, representing around 15% of manufacturing value addition. It is a significant contributor to gross exports and job creation, ranking second only to agriculture. Furthermore, this sector meets essential needs, supporting economic growth and enhancing overall living standards. Moreover, it maintains self-sufficiency by managing all stages of production from sourcing raw materials to delivering finished goods.
gn="justify">The Indian Textile Industry is crucial for the country's economy as it contributes significantly to manufacturing and exports. Around 27 percent of India's foreign exchange earnings come from textile exports. This industry encompasses different sectors such as Silk Textiles, Woolen Textiles, Readmes Garments, Cotton Textiles, Hand-crafted Textiles, Jute, and Coir. In total, there are 11228 textile mills in operation in this industry with a substantial spinning capacity of 29 million spindles.
Yarn is usually made in mills, while fabrics are produced in both handloom and power loom. In India's textile industry, cotton has always been the main material, making up about 65% of raw material consumption. The annual production output of cotton is huge, reaching approximately 12.8 billion meters. This industry has created numerous job opportunities for millions of people, including jute and cotton growers, as well as weavers working in organizing
and household sectors across the country.
The Indian Textile Industry holds great significance on a global scale, ranking second in the world for basics and cotton yarn production, and fifth for synthetic fabric production. Some prominent players in India's textile industry include Wellness India Ltd, which specializes in home textiles, terry towels, and bathrobes. Verandah Group engages in yarn making, fabric thread sewing, and acrylic fabric production. Look Industries Ltd focuses on home textiles, woven and knitted apparel fabric, garment manufacturing, and polyester yarn production. Raymond Ltd specializes in worsted suiting, tailored clothing, denim making, shirting, and woolen outerwear. Arrived Mills Ltd excels in spinning, weaving, processing, and garment production including khakis, denims, knitwear, and shirts. Bombay Dyeing Manufacturing Company Ltd offers a wide range of products such as towels, bed linen, fabric for suits, shirts, dresses, furnishings, and saris in cotton and polyester blends. Garden Silk Mills Ltd operates in the dying sector and fabric printing.
Nonfatal Industries Ltd specializes in the production of shirting, poplin, bottom wear fabrics, and voile. TIC Lifestyle operates in the lifestyle market. Reliance Industry Ltd is involved in fabric manufacturing and formal menswear. In terms of the Indian Textile Industry, small-scale firms dominate and are engaged in non-integrated spinning, weaving, and finishing activities. These firms have been supported by the government and primarily rely on labor-intensive operations, which sets them apart from large-scale firms. Composite mills, on the other hand, are prominent in many countries as they handle spinning, finishing, and weaving processes. However, in India, these mills contribute only 3 percent of the overall output.
The majority of mills in India are typically owned by the public
sector.
Potter's five force analysis
The bargaining power of customers in the textile industry is expected to increase as more countries, including India and other neighboring countries, become low-cost suppliers. This growth is projected to occur by the year 2015. Customers in this industry are likely to invest in multiple low-cost producing countries to mitigate risk and diversify their investments.
The customer has the ability to switch their consumption between different countries. India stands as a major player in cotton production, ranking third globally. One of India's advantages lies in its locally grown cotton, which enables lower production costs. In contrast, Pakistan and China face limited supplies of locally grown cotton. Additionally, India benefits from cheaper labor costs compared to developed nations such as the US and China.
Regarding new competitors posing a threat, smaller players are entering domestic markets due to their inability to access global markets. This surplus supply weakens pricing within the industry. In the denim sector, Arrived mills have successfully entered the market, while companies like Wellness and Look have made an impact in the home textiles sector. To maintain competitiveness, large players in the industry must secure a significant share in the global market.
India's export sector is under threat from neighboring countries like Bangladesh and Pakistan as they have lower production costs. Consequently, global buyers are exploring alternative options instead of Indian mills. Furthermore, India faces tough competition from China, Turkey, and Mexico due to their better access to major markets such as Japan, the United States, and Europe thanks to their geographical location. Consequently, India incurs higher transportation costs and longer shipping times. The textile industry in Gujarat
has played a vital role in the state's industrialization by contributing approximately 33% of the country's cotton production. This achievement is made possible by the presence of black soil in Gujarat which is essential for growing cotton.
The textile industry is of great significance to India, with Gujarat being a crucial hub as it contributes around 35 percent of the country's woven fabric production. Within Gujarat, Mohammedan and Sugar cities are key players in textile manufacturing, accounting for 50 percent of the state's total textile output. Sugar city specifically excels in producing man-made fabrics and contributes approximately 45 percent to India's silk production. Overall, the textile industry contributes roughly 25 percent to Gujarat's gross domestic product.
Gujarat contributes approximately 20 percent of India's total exports. In the early sass, Gujarat witnessed significant advancements in its textile sector with the emergence of industry leaders such as Arrived Mills, Modern Denim, and Soma Textile. These companies played a pivotal role in transforming denim production and establishing Gujarat as the 'land of denim' within India. The success of Gujarat's textile industry can be attributed to multiple factors, including the preservation of its cultural heritage.
The textile industry in Gujarat experienced a decline in cotton production. However, after Mood implemented certain policies, there was a significant increase in cotton production in the state. In 2001, the production reached 23 lakh bales and later increased even further to 1 crore 23 lakh bales. Gujarat is also known for being a major producer of Denim. Over the years, the production capacity in Gujarat has notably expanded, especially with the arrival of mills. Consequently, the total number of denim mills in Gujarat
has significantly risen.
Initially, Arrived Mills was the sole denim producer in Gujarat. However, the denim market in Gujarat now includes multiple other producers such as Arrive Denim Mill, Blue Blends Denim, Sandal Denim, Sashimi Denim Mill, Modern Denim, Soma Denim, Andean Denim, and Keg's denim. Currently, there are a total of 20 mills operating in India with 7 located in Gujarat. Collectively, these mills have a capacity to produce 600 million meters of denim annually. Among them all, Arrived Mills has the highest denim production at approximately 110 meters per year. In 1931, Arrived Mills Ltd became the leading company of the Labial Group valued at USD 500 million. The company achieved its objectives by importing state-of-the-art machinery for manufacturing luxurious fabrics that are fine and delicate. Arrived Mills was one of India's earliest companies during the industrialization phase to feature fully equipped facilities including spinning, weaving dyeing bleaching finishing and memorizing. Furthermore it had a total of 52,560 ring spindles ,2552 doubling spindles,and1122 looms.
During the mid sass's, the Indian textile industry experienced a crisis due to the power loom sector producing large quantities of inexpensive fabrics. This resulted in numerous large and complex mills losing their markets. Despite the company's profitability at that time, it took proactive steps to address this threat by focusing more on international markets. The company began exporting denim for casual wear and high-quality fabric for cotton shirting and trousers.
Founded in 1991, the company has achieved global recognition as the world's third largest denim producer. With a diverse portfolio of popular brands including Lee, Wrangler, Arrow, Flying Machine, Newport, Ruff & Tuff and more, their aim is
to become the leading branded apparel company in India. They have adopted an proactive strategy of expanding their operations by establishing state-of-the-art clothing manufacturing facilities and offering a comprehensive garment package to customers both locally and globally.
The following graph provides information about the Equity of Arrived mills. 5. 1 Timeline 1931- 1980: Arrived Mills Limited is promoted backstairs, Normative and Chainman Labial. During this period, Arrived achieves a leadership position in the Textile Industry. 1980-1991: This duration sees Arrived expanding into the denim market as the first Indian company to do so. They also shift their business focus to a global scale. 1993-1997: Arrived introduces Arrow, a U.S.-based brand, to the Indian market.
Arrived Mills Ltd. established its largest facility for shirting and knitting in Senate from 2005 to 2007. During 2005, they achieved a top 3 ranking in the industry. They began offering garment packages to various brands through an international one-stop shop service. In 2010, Arrived store was recognized as India's best fabric selling store and also provided customers with excellent tailoring solutions. Arrived Mills Ltd. is a leading textile producer in India, operating in both the fabrics and garments sectors of the textile industry value chain.
Under fabrics, the company produces denim, shirting, khakis, knitwear, and voile's. Denim contributes to over 60 percent of the company's turnover. It is present in both domestic and international markets for formal and casual clothing in the garment section. The company dominates the domestic ready-to-wear garment segments. It has successfully launched its own brands as well as international ones. These include Arrow for formals and casuals, Lee for Swears, Wrangler for Swears, and Tommy Hillier
for fashion (under license from the respective companies).
