Buying Arvind

8/12/2019 Buying Arvind

1/21


2/21

OFFICE VISITED:

Arvind Brands Lifestyle Limited

Du Parc Trinity

8thFloor,

17, M. G. Road,

Bangalore560001

Karnataka

India


3/21

I would like to express my gratitude to Mr. C. Nagaraju

(Product Department: MEGAMART), Arvind Lifestyle Brands

Limited, for giving me his valuable time and for sharing

valuable information relating to the working of the company.

Contact : E-mail: [email protected]


4/21

Arvind is amongst a few organizations worldwide with a

portfolio of brands that are distinctive and relevant across

diverse consumers. At Arvind, brands work across multiple

channels, price points and consumer segments.


5/21

OWNBRAND

S MainstreamExcaliburFlying

Machine

Popular

Ruff & Tuff

New PortUniversity

LICENS

EDBRAND

S Bridge toLuxuryGant, U.S.A.1949

Premium

USPA,

SansaBeltIzod &Arrow

Popular

Cherokee

JOIN

TVENTUR

E

BRAND

S

Bridge to

LuxuryTommyHilfiger

Premium

Lee

Wrangler

Popular

WranglerHero

Riders


6/21

OWNED BRANDS

All functions starting from the design development, fabric and

trim selection, to entire retailing (manufacturing, branding,

logistics, marketing and sales) are managed by their Bangalore

Office.

Arvind caters to the entire domestic market in India and

exports in neighboring countries like :Sri Lanka, Bangladesh,

Dubai for the brands owned by it. Has its own stores and

distributors in these countries.


7/21

LICENSED BRANDS:

All the functions carried out are same as Owned Brands, except

for a few brands like US Polo, for which Logos need to be

approved before incorporating in Garments manufactured and

distributed under their Brand Name.

Has license for selling these brands in Indian Market only.


8/21

JOINT VENTURE

Under joint venture, for some of the International Brands like

Wrangler, Lee, etc. the design development and manufacturing

is managed by Arvind; but for others like Tommy Hilfiger,

Arvind only purchases some of their design collections from

their trade shows for selling in Indian market.


9/21

Arvind Brands has a separate segment dedicated to each of the

Brands whose designing, production and marketing is managed

by it.

For example, Arrow or Flying Machine, each have their

separate Design Studios, Sourcing team, Sales team, Retail

team, Quality Management teams, etc.


10/21

Jeans

- Capacity : 9 million pieces per annum.

-Brands: Flying Machine, New Port, Wrangler etc.

Shirt

-Capacity : 4 million pieces per annum

-Brands: Arrow, Excalibur, etc.

Knits

-Capacity : 9 million pieces per annum

-The product line : mens and womens tee shirts, mensand womens polo shirts,etc

-Brands: Arrow, US Polo, etc


11/21

TIME DURATION PLANNED DATE REMARKS/RESPONSIBILITY

Design Research 30-60 days Jan/Feb, 2014 By each brands

Design Studio

Design

Development

Costing

Timeline For

Sampling

90-120 days

60-90 days

March/April, 2014 By each brands

Design Studio

Trade Shows** July/August, 2014 For Shoppers

Stop, Lifestyle-Arvinds Buyers

Orders Released August/

September, 2014

By 15th

September, PO is

done

**For International Brands (like Tommy Hilfiger), Arvind selects the designs and ranges andplaces the order at the formers Trade Shows, one month before its own Trade Shows.
http://localhost/var/www/apps/conversion/tmp/scratch_4/DESIGN%20DEVELOPMENT.pptxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/DESIGN%20DEVELOPMENT.pptxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROAD%20SHOW.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_4/ORDER%20RELEASED.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_4/ORDER%20RELEASED.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROAD%20SHOW.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_4/DESIGN%20DEVELOPMENT.pptxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/DESIGN%20DEVELOPMENT.pptx


12/21

TIME DURATION PLANNED DATE REMARKS/RESPONSIBILITY

Delivery in

Warehouse

December End

January End

February End

Hits the shelf in

February

Hits the shelf in

March

Hits the shelf in

April

Delivery in Store February, 2012

March, 2012

April, 2012

Deliveries are

bifurcated, all

merchandise do

not hit the shelf

simultaneously


13/21

Arvind Brands does not have any production units of its own.

The production is outsourced to garment manufacturing units,

which are either owned by the Lalbhai Group or others.

Vendor audits are for new vendors only and not for old

vendors. Parameters checked are manufacturing capacity, level

of technology, skill of workers and working conditions, etc.

Quality audits done by Quality teams of the respective Brands

being manufactured.


14/21

Payment Terms : 60 days after receipt of material

Delivery Terms : Free house

Terms & Conditions:

2% (for any code) will be acceptable as 2ndclass goods for

fabric/manufacturing defects . Anything over & above that will

not be acceptable.

3rdclass goods are not acceptable.

(+/-)5% Size wise excess quantity allowed for GRN.


15/21

Any excess quantity over & above the PO quantity is returned

back to the respective vendor.

Penalty Clause for Late Delivery:

No penalty is levied for delay of 7 days from date of delivery

as per Purchase order.

For delay between 7 to 15 days a penalty of Rs 20 pergarment is levied.

For delay of more than 15 days to 21 days a penalty of Rs. 50

per garment is levied.


16/21

Brands like Arrow, Gant, Izod, Wrangler, etc. who have

licensed Arvind Brands for producing and marketing goods

under their Brand Name in India, do not interfere with the

working of Arvind Brands as such.

Auditsare done around once in f ive years for issues relating to

the Code of Conduct and Working Conditions prevailing in the

manufacturing units allocated by Arvind.


17/21

Most of the garments manufactured under Arvind Lifestyle

Brands Ltd. are sold at retail outlets owned by Arvind or

through its distributors.

Arvinds also conducts Trade Shows where brands like

Shoppers Stop and Lifestyle select the product ranges they

need for their stores, and send the PO.

Shipment term is FOB, and there are no provisions for penalty

as of yet.


18/21

Mega Mart which comes under the division of Arvind Retail

Ltd. is basically not a part of Arvind Lifestyle Brand Ltd.

Mega Mart is owned by Lalbhai group, and is an example of

value retailing, combining a premium ambience with

amazingly low prices.

Left Stock in Arvinds Retail Outlets that have not sold for

approximately a year are sold to Mega Mart at subsidized rates.


19/21

Costof the product is generally (27-32)% of the MRP. Works

on a multiplier of 3(approx).

Owned Brands:production cost + profit %

Licensed Brands (Arvind manages the manufacturing):

production cost + %license fees + profit%

Licensed & Joint Ownership Brands (Arvind buys goods

from the Brands): purchase cost + profit%


20/21

http://www.arvindmills.com/portfolio.htm

http://www.livemint.com/2009/06/25172029/arvind-brands-to-

bring-global.html

http://www.naukri.com/gpw/arvind/fabrics/abl.html

http://www.livemint.com/2009/06/25172029/arvind-brands-to-

bring-global.html
http://www.arvindmills.com/portfolio.htmhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.naukri.com/gpw/arvind/fabrics/abl.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.livemint.com/2009/06/25172029/arvind-brands-to-bring-global.htmlhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htmhttp://www.arvindmills.com/portfolio.htm


21/21

THANK YOU

Documents

Buying Arvind