History
The year 1930 was when the world suffered the great 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 across 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 set up a mill to produce superfine fabric. Next they looked around for state-of-the-art machinery that could produce such high quality fabric. Their search ended in England. The best technology of that time was acquired at a most attractive price. And a company called Arvind Limited was born. Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year 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. The sales in the year 1934, three years after establishment were Rs 45.76 lakh and profits were Rs 2.82 lakh. 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 – Reno vision. 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, a market that expected and accepted only quality goods. An in-depth analysis of the world textile market proved an eye opener. People the world over were shifting from synthetic to natural fabrics. Cottons were the largest growing segments. But where conventional wisdom pointed to popular priced segments, Reno vision pointed to high quality premium niches. Thus in 1987-88 Arvind entered the export market for two sections -Denim for leisure & fashion wear and high quality fabric for cotton shirting and trousers. By 1991 Arvind reached 1600 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 effluent treatment facility with zero effluent discharge capability was also established. Year 2005 was a watershed year for textiles. With the muliti-fiber agreement getting phased out and the disbanding of quotas, international textile trade was poised for a quantum leap. In the domestic market too, the rationalizing of the cenvat chain and the growth of the organized retail industry was likely to make textiles and apparel see an explosive growth. Arvind has carved out an aggressive strategy to verticalize its current operations by setting up worldscale garmenting facilities and offering a one-stop shop service, by offering garment packages to its international and domestic customers. With Lee, Wrangler, Arrow and Tommy Hilfiger and its own domestic brands of Flying Machine, Newport, Excalibur and Ruf & Tuf, Arvind set its vision of becoming the largest apparel brands company in India.
Founding father
The Lalbhais –A Historical Perspective The Lalbhais can trace their descent from Seth Shantidas (c.1590-1659), who was a dominant figure in the business and civic life of the city. He enjoyed the patronage of the Moghul emperors to whom he was a trusted jeweler. Shantidas was amongst the prominent financers of his time as well. He played an influential role amongst the Jain community of his time, and it was because of his influence at the Moghul court that Shah Jehan confirmed the rights of the Jains over the ancient shrines of Shetrunjaya. His grandson, Khushalchand, (1680- 1748) too occupied a place of prominence in the business and social life of the city. He saved the city of Ahmedabad from the marauding Maratha army in 1725 by paying a ransom of Rs. 5 Lakh on behalf of the whole city. For this act the grateful “mahajans” promised in perpetuity, a small amount collected as town duties on goods entering the city to Khushalchand and his family, and the title of Nagarsheth was bestowed upon him. The current surname, Lalbhai, is derived from Lalbhai Dalpatbhai the great great great grandson of Khushalchand. Lalbhai was born around the time when the first textile factory in the city went into production. The first manufacturing company of the Lalbhai family, Saraspur Manufacturing Company was established in 1897. It started with producing cotton yarn. During the intensifying Swadeshi movement the second company Raipur Mills was established in 1905. Due to untimely death Lalbhai Dalpatbhai the reins of his businesses were handed over to his young sons including a seventeen-year-old Kasturbhai Lalbhai. Kasturbhai started the first large scale textile mill under the name of Asoka Mills in 1920 with a capital of Rs.12 Lakh at a time when the largest mills in the region were built with not more than Rs. 5 Lakh. 1930-31 saw the resurgence of second Swadeshi movement coinciding with the great depression. While different entrepreneurs reacted to the situation differently Kasturbhai saw this as the decade of prosperity and growth and established the flagship Arvind Limited in 1931 with an authorized capital of Rs. 25.25 Lakh. Kasturbhai had also floated mills for families of his three sisters under the name of Aruna Mills in 1928 and Nutan Mills in 1931 and Ahmedabad New Cotton Mills in 1938. With the expansion Kasturbhai came to occupy the position of the biggest textile magnate in the country. Few groups could claim to have made such great strides during one of the worst periods in India‟s industrial history. After a continuously successful period of four decades in the pre- independence era, the group entered into other fields such as dyes, pharmaceuticals, chemicals, etc. The first diversification started in 1939 with Anil Starch Limited. Atul Products Limited was established in 1952 for manufacturing textile-related chemicals and dyestuff. Atul formed joint ventures with Ciba-Geigy called Cibatul, with American Cynamid called Cynamid of India and with ICI of UK called Atic Industries. As time progressed the JV partners separated amicably and these companies exist in India today as full representatives of these global giants. With the retirement of Kasturbhai and his younger brother Narottambhai from active business, the role of the patriarch fell on the shoulders of Arvindbhai. He along with his brother Niranjanbhai and his cousins Ashokbhai, Ajaybhai, Chinubhai and Vijaysinhbhai looked into the running of the textile mills, Siddharthbhai headed Atul Products, and Shrenikbhai, Anil starch. The group took over a sick company called Ahmedabad Laxmi Cotton Mills Co. Ltd. and merged with Arvind Limited and the unit was renamed as Ankur Textiles. The unit currently under Arvind Products Limited is today the country‟s largest organized player in the voiles market. The group also invested in Anup Engineering Limited engaged in fabrication and set up Amol Dicalite in collaboration with General Refractories Limited, U.S.A for manufacturing filter aids and perlite products. With the third generation of Lalbhais retiring from business Sanjay, Sunil and Samveg Lalbhai, the fourth generation of Lalbhais, now oversee all the businesses. Apart from the field of business the Lalbhais over generations have contributed to education, social and religious causes. Their contribution to education starting from Gujarat Vernacular Society in late 1800‟s to the formation of Ahmedabad Education Society, (1936), which governs 11 leading colleges and 6 schools, and 4 other educational programs. Kasturbhai Lalbhai played a key role in establishing the Physical Research Laboratory (1948), ATIRA (1947) and the famed IIM Ahmedabad (1961). The Lalbhai family has been closely associated with the Jain trust called Anandji Kalyanji Trust, which is involved in propagating and maintaining Jain temples in western India. Shri Kasturbhai Lalbhai headed the trust for 50 years, followed by Shrenik Lalbhai for 30 years, and now, Samveg Lalbhai heads the trust. Sanjay Lalbhai heads Sharda Trust – Arvind‟s CSR vehicle. Arvind is committed to upgrading the standard of municipal schools in Ahmedabad and work towards building a pool of bright employable youth.
Mission
The underlying theme running across the broad spectrum of all business activities at Arvind is that of enhancing lifestyles of people, across all diversities and demographics. To serve that end, the corporate vision for Arvind states: ‘We will enable people to experience a better quality of life by providing enriching and inspiring lifestyle solutions’. OUR PHILOSOPHY WE BELIEVE In people and their unlimited potential; in content and in focus on problem solving; in teams for effective performance, in the power of the intellect. WE ENDEAVOUR To select, train and coach people to obtain higher responsibilities; to nurture talent, and to build leaders for the corporations of tomorrow; to reward, celebrate and activate all intellectual business contributions. WE DREAM Of excellence in all endeavors; of mutual benefit and prosperity; of making the world a better place to live in.
Coporate person
Corporate Jayesh Shah Director & CFO
Anang Lalbhai MD - Arvind Products
Lifestyle Fabrics Aamir Akhtar CEO, Lifestyle Fabrics - Denim
Susheel Kaul CEO, Knits & Woven Fabrics
PD Chavda President, Voiles
Lifestyle Apparel Ashish Kumar CEO, Lifestyle Apparel - Jeans & Shirts
Brands & Retail J.Suresh Managing Director - Brands & Retail
Anup Engineering Rishi Roop Kapoor CEO, Anup Engineering
Arvind Accel Dinesh Yadav CEO, Arvind Accel
Telecom Business Vipen Malhotra President - Arvind Telecom
Arvind Infrastructure Kamal Singal CEO, Arvind Infrastructure
Knowledge Academy Milan Shah CEO, Knowledge Academy
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. He also holds directorships in Arvind Lifestyle Brands Limited, Arvind Retail Limited, Arvind Brands & Retail Limited, Amol Decalite Limited, Torrent Pharmaceuticals Limited, Arvind Worldwide Inc., USA, Arvind Worldwide (M) Inc., Arvind Overseas (M) Ltd. Arvind Spinning Ltd., Mauritius and Arvind Textile Mills Limited, Bangladesh.
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. He has a distinguished academic career and extensive administrative, financial, regulatory and managerial expertise. He also holds directorships in many other companies.
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. He has several awards and honors during his career including Research Grants, Presidential Fellowship Grant, J.M. Long-Endowed Scholarship and inclusion in Dean’s Lists for consistent Academic Excellence. He is passionate about nature conservation and sustainability, and is currently serving as a Board Member for Sustainable Apparel Coalition, Council Member for Better Cotton Initiative (Geneva) and Member of CII for Family Business Network.
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. He has held several leadership positions during his academic role including serving as Co-President of Family Business Club at Harvard, Associate Director for Stanford Asia Technology Initiative and also serving as Conference Co-Chair for the Harvard-India Conference. He is passionate about Retail Industry and B2C businesses and has researched extensively on Disruptive Business Models and Online space.
OTHER DIRECTORS Mr. Sudhir Mehta (Non-executive and Independent Director) Mr. Sudhir Mehta is a Science Graduate from Gujarat University. He was instrumental in the growth and progress of Torrent Pharmaceuticals Ltd., the flagship Company of the Torrent Group. He systematically expanded the power business of Torrent Group by acquiring significant stakes in the Torrent Power AEC Ltd. and Torrent Power SEC Ltd. and Torrent Power Generation Limited, now merged with Torrent Power Limited and one among the few successful independent power projects in India. He has managed strategic alliance with leading international giants from U.K., Germany, France and USA. He is an Executive Chairman of Torrent Power Limited and a Chairman of Torrent Pharmaceuticals Limited, Torrent Private Limited, Torrent Pipavav Generation Limited, Torrent Energy Limited and Diamond Infrastructure Private Limited.
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 was awarded many awards including Padma Shri by the Government of India in recognition of his distinguished services in the field of education in 2007, Bharat Asmita National Award for his contribution to management education and teaching by the Hon’be Chief Justice of India in 2008 etc. In 2005, Dr. Bakul Dholakia was rated as one of the most powerful personalities of Gujarat by two separate media groups. Global Associations of Business Schools have also honoured Dr. Bakul Dholakia for his sterling contribution in the field of management education. The Global Foundation for Management Education (GFME), jointly formed by the Associations of American and European Business Schools, has nominated Dr. Bakul Dholakia as a Member of the Board of GFME representing Asia. Dr. Dholakia has been a Board Member of Reserve Bank of India Western Area Board from 1993 to 2001. He was appointed as the Chairman of the National Board of Accreditation for Technical Education in India. Over the last two decades, Dr. Dholakia has worked on numerous government committees. He has also been a member of the Jury for various Corporate Excellence Awards and Selection Committees for CEOs. Dr. Dholakia is the author of 12 books. Currently, Dr. Dholakia is leading the educational initiatives of Adani Group.
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. He has an extensive network of relationships with Indian Corporates. In addition to management experience, he has been involved in Investment Banking and Corporate Advisory Services with special emphasis on raising resources from Capital Markets and Private Equity, Merger & Acquisitions, establishing joint ventures and corporate restructuring. He has a wide-range of experience in a number of sectors including Power, Energy, Telecom, Media & Pharma. Mr. Munesh Khanna has held senior position in organizations such as Arthur Andersen (Head of Corporate Finance), NM Rothschild & Sons (Country Head), DSP Merill Lynch (Head of Investments Banking) & Enam (Partner). Prior to joining Grant Thornton, he was the MD and Head of Investment Banking at Centrum Capital Ltd., a leading financial services firm and is responsible for providing strategic and financial advisory services in corporate finance, M&A, restructuring and strategic initiatives and is also responsible for all equities business. He is very active speaker and has spoken at several public forums and is regularly quoted in press and TV.
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. In her career spanning nearly two and a half decades in the Indian financial sector, Ms. Renuka Ramnath has been involved with building several businesses from scratch in the ICICI Group which include Investment Banking, Structured Finance and e-Commerce in the 1990s and Private Equity in 2000; much before each of these terms became ubiquitous in Indian marketplace.