OFFICE VISITED: Arvind Brands Lifestyle Limited Du Parc Trinity

8th Floor,
17, M. G. Road, Bangalore 560001 Karnataka India

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]

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.

LICENSED BRANDS

Popular Ruff & Tuff New Port University

Premium USPA, SansaBelt Izod & Arrow Popular Cherokee

JOINT VENTURE BRANDS

OWN BRANDS

Mainstream Excalibur Flying Machine

Bridge to Luxury Gant, U.S.A. 1949

Bridge to Luxury Tommy Hilfiger Premium Lee Wrangler

Popular Wrangler Hero Riders

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.

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.

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.

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.

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, mens and womens polo shirts,etc -Brands: Arrow, US Polo, etc

TIME DURATION Design Research Design Development Costing Timeline For Sampling Trade Shows** 30-60 days 90-120 days

PLANNED DATE Jan/Feb, 2014

REMARKS/ RESPONSIBILITY By each brands Design Studio

March/April, 2014 By each brands Design Studio

60-90 days July/August, 2014 For Shoppers Stop, LifestyleArvinds Buyers By 15th September, PO is done

Orders Released

August/ September, 2014

** For International Brands (like Tommy Hilfiger), Arvind selects the designs and ranges and places the order at the formers Trade Shows, one month before its own Trade Shows.

TIME DURATION PLANNED DATE

REMARKS/ RESPONSIBILITY
Hits the shelf in February

Delivery in Warehouse

December End

January End
February End

Hits the shelf in March

Hits the shelf in April Deliveries are bifurcated, all merchandise do not hit the shelf simultaneously

Delivery in Store

February, 2012 March, 2012 April, 2012

 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.

 Payment Terms : 60 days after receipt of material Delivery Terms : Free house Terms & Conditions:
2% (for any code) will be acceptable as 2nd class goods for fabric/manufacturing defects . Anything over & above that will not be acceptable.

3rd class goods are not acceptable. (+/-)5% Size wise excess quantity allowed for GRN.

 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 per garment is levied. For delay of more than 15 days to 21 days a penalty of Rs. 50 per garment is levied.

 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.

Audits are done around once in five years for issues relating to the Code of Conduct and Working Conditions prevailing in the manufacturing units allocated by Arvind.

 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.

 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.

Cost of 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%

http://www.arvindmills.com/portfolio.htm http://www.livemint.com/2009/06/25172029/arvind-brands-tobring-global.html

http://www.naukri.com/gpw/arvind/fabrics/abl.html
http://www.livemint.com/2009/06/25172029/arvind-brands-tobring-global.html

THANK YOU