INDEX

1 Group Companies HISTORY PRODUCT Export History Analysis CSR Initiatives ACHIEVEMENTS CORPORATE SOCIAL RESPONSIBILITY FACILITIES OVERVIEW MARKETS ALLIANCE ENQUIRY YARNS PRODUCT PROFILE YARNS MACHINERY YARNS OPERATIONS REFERENCES

Vardhman

Group is

textile

group

based

in Ludhiana, Punjab, India.

Vardhman Group was established in 1965 by Lala Rattan Chand Oswal. The group is engaged in manufacturing and trading in Yarn, Greige and Processed Fabric, Sewing Thread, Acrylic fibre and Alloy steel. Vardhman group was incorporated in 1962 as Vardhman Spinning & General Mills (VSGML). The company was promoted by VS Oswal and RC Oswal initially. The total number of employees in the company as of April 2011 is 23000.

Group Companies
The group is structured in such a way as to have a central holding company that is used for investing in the different group companies. The holding company in this case is Vardhman Holdings limited and the group companies are Vardhman Textiles (61%), Vardhman Industries (65%) and Vardhman Acrylic (60%). Vardhman textiles in-turn has holding in VMT Spinning (73.33%), Vardhman threads (100%) and Vardhman yarns and threads (98.04%).

HISTORY
Vardhman Textiles, incorporated in 1973, is one of the pioneers in textile industry with operations in the segments of yarn, sewing thread, steel, and fabric. Formerly known as Mahavir Spinning Mills, it is a part of Vardhman Group managed by Paul Oswal. In 1975, Vardhman Textiles? first plant was commissioned with 25,088 spindles in Hoshiarpur, Punjab. In 1977-78, the company set up a 25,000spindle textile mill at Malerkotla in Sanazur, Punjab. In 1992-93, a 100% Export Oriented Unit (EOU) was commissioned by Vardhman Textiles? at Mandideep. Both the Malerkotla mill and EOU unit was awarded the ISO 9002/BIS 14002 by Bureau of Indian Standards (BIS). In March 1995, its gassed and mercerized dyed yarn project at Hoshiarpur commenced production.In order to set up 100% EOU located at Baddi, Himachal Pradesh, the company formed joint venture with Marubeni Corporation and Toho Rayon of Japan. For this company established Vardhman Acrylics and started commercial production in September 1996. In 1998-99 company set up its 3rd 100% EOU at Mandideep with an installed production capacity of 25000 spindles. Company set up unit-II at Ludhiana in order to expand its sewing thread capacity. This unit had an installed capacity of 5 TPD. Company entered an agreement with Amercian & Effird Inc., USA to manufacture superior sewing thread. Much later in 2004 the textile business of Vardhman Spinning and General Mills was merged with Vardhman Textiles. The company added new units of Looms and Rotors with a installed capacity of 264 Nos and 528 Nos respectively Companies like VMT Spinning Company (VMT), Vardhman Threads (VTL) and Vardhman Yarns & Threads and Vardhman Acrylics are the subsidiaries of Vardhman Textiles. Vardhman Textiles is promoted by Ludhiana based Vardhman Group, a major textile business house in India. Company has received ISO 9002/ ISO 14002 certification for its quality management. Vardhman Textiles, exports its products to more than 25 countries and has a strong presence in markets like the EEC, USA, Canada, China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East.

Products
Some of the important products of Vardhman group are: Simple and blended yarns, Acrylic fibre (brand Verlon), range of threads (apparel sewing, Tea bags, Industrial threads etc.), Shirting and trouser materials, forging and automotive components and steel

Yarn: Under this segment, the company manufactures wide range of yarn such as Grey Cotton, Grey Acrylic, Crayons, Hank Dyed Acrylic, Vardhman Knitting, Gassed Mercerised Cotton and many more. Company? annual manufacturing capacity of yarn is to 98,736 MT. Fabrics- Company manufactures fabric for shirting and bottom weights. It produces fabrics of various types viz. 100% Cotton, Polyester cotton, Chief Value Cotton and Cotton Stretch. Company? fabric manufacturing capacity is 30 million meters per annum Sewing Threads- Company manufactures wide range of threads such as cotton, polyster, core spun (polyester cotton/ polyester polyester), trilobal embroidery thread, bonded nylon and lubricated nylon thread including specialized threads like button fusing, bead fusing and anti wicking, button shanking, indigo dyed and so on. Steel- Under this, company has an installed capacity of 1,00,000 Metric tonnes per annum.

Export History
The company started exporting from 199091 and it exports mainly to Spain, UK, Germany, US, Japan and some African and E.Asian countries. Exports account for 22% of the groups revenues.

Strategic Analysis: 1. The group has a unique business model with presence in entire value chain from Fibre to Fabric this gives it the company the flexibility to reorganize their business effectively during down turns and ramp up faster than competitors when the economy is buoyant. 2. The group has a large cotton inventory holding capacity thus helping it to control its supply chain operations and thereby absorb fluctuations in market demand. 3. In order to build a competitive advantage, the group has been continuously working on improving its capabilities continuously and diversifying from its

core Yarn and fabric business. The groups foray into Steel is a good example of this. Financial Analysis: 1. Sales growth - An analysis of the gross sales of the company between 2004-2009 shows that sales of the company is growing at an CAGR of 9.5% 2. Sales Vs Profit Growth - Analyzing the gross sales and PBT ratio, while the sales is growing at 9.5% CAGR the PBT is decreasing from 11.5% in 2005-2006 to 4.3% in 2008-2009. If the businesses are ranked in terms of profitability the order would be as follows: Yarn, Thread, Steel and Fabric.

CSR Initiatives
The group has been active in multiple educational and general wellness initiatives. Some examples are given below: 1. Setting up Sri Aurobindo socio-economic and management research institute, setting up commerce and management colleges and schools 2. Active participant of Village Culture Adaptation program at Punjab to increase the cotton yield per hectare and the program was a huge success. Started similar village adaptation program in MP and till now 2 villages have been adopted.

ACHIEVEMENTS
It's an overwhelming feeling when the efforts and hard work put in are recognized and felicitated. A feeling that galvanizes the Group into believing in more, in itself and reaffirming its commitment to offer products that invoke trust and reliability.

Back home, the Vardhman Group became India's first textile company to be awarded ICO9002/ ISO 14002 Certification. It is the largest producer and exporter of yarns and Grey woven fabrics from India. Vardhman is also the largest producer of tyercord yarns and the second largest producer of sewing threads in India. Textile Export Promotion Council 2012-13Gold Trophy (Small) for the Highest Exports of Processed Yarns in Category IIGold Trophy (Small) for the Highest Exports of Bleched/Dyed/Yarn Dyed/Printed Fabrics in Category IIGold Plaque for the Highest Exports of Grey Fabrics in the Category

FIEO - Awarded in Oct. 2012Niyat Shree Bronze Award Textile Export Promotion Council 2011-12Silver Trophy in Processed YarnsSilver Trophy in Textile Export Promotion Council 2010-11Silver Trophy in Processed YarnsSilver Trophy in Textile Export Promotion Council 2009-10Gold Trophy in Processed Yarn CategorySilver Textile Export Promotion Council 2008-09Silver Trophy in Processed Yarn CategorySilver Textile Export Promotion Council 2007-08Special Achievement Award in Yarn Category Textile Export Promotion Council 2007-08Silver Top Exporter Award in Yarn Category Textile Export Promotion Council 2007-08Bronze Trophy in Processed Yarn Category Textile Export Promotion Council 2005-06World Trophy in highest export in Yarn Category Textile Export Promotion Council 2005-06Bronze Trophy for Highest Global Export Category (Overall) Textile Export Promotion Council 2004-05World Trophy in highest export in Yarn Category Textile Export Promotion Council 2004-05Silver Trophy for Highest Global Export Category (Overall) Textile Export Promotion Council 2003-04Gold trophy in EOU/EPZ for export of cotton yarn Textile Export Promotion Council 2003-04Bronze trophy in mill fabric exporter category Textile Export Promotion Council 2002-03Gold Trophy in EOU/EPZ for export of cotton yarn Textile Export Promotion Council 1998-99Silver Trophy Textile Export Promotion Council 1997-98Bronze Trophy Textile Export Promotion Council 1996-97Silver Trophy Govt. of India Award 1994-5, 1995-96Award of Merit Textile Export Promotion Council 1993-94(Merchant Export Category for Fabrics)Bronze Textile Export Promotion Council 1993-94(Merchant Export Category for Fabrics)Gold Textile Export Promotion Council 1990-00 Gold Trophy.

Awards. The Company was awarded Golden trophy by Textile Export Promotion Council (Merchant Export Category for Fabrics) for the various export performance in the year 1993-94. Vardhman Textiles received the award of merit from the Government of India in the year 1994-95 and 1995-96. Vardhman Group (Parent Company) Vardhman Group was set up in the year 1965 at Ludhiana, Northern India. The group has business interest in area of .Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel. Vardhman group is one of the largest spinning group of the country with a spindlage of over 5,50,000. The group has 12 production plants located in the states of Punjab, Himachal Pradesh and Madhya Pradesh. Currently the group has manufacturing capacity of approximately 25 metric tonne/per day of sewing thread in its plant at Hoshiarpur, Ludhiana, Baddi and Perundurai. Currently the group employs 20,000 people.

CORPORATE SOCIAL RESPONSIBILITY CMD. Sh. S. P. Oswal welcoming S. Sukhbir Singh Badal, Deputy Chief Minister, Punjab on the inaugural function of the 3rd Block of Sri Aurobindo College engaged of in Commerce the and Management of education, on 16th November' and 2013. Sri Aurobindo Socio-Economic and Management Research Institute is promotion research publications highlighting social and economic issues facing the society. The Institute runs a Human Resource Development Centre for providing career counseling and guidance to college students in Punjab. The teams of experts also visit the colleges in the state to prepare college students for gainful employment in the industry. FACILITIES Yarn Manufacturing Units. Location SpindlesVardhman Spinning and General Mills Ludhiana (Punjab) 67744Vardhman Spinning Mills Baddi (Himachal Pradesh) 55440Auro Spinning Mills Baddi (Himachal Pradesh) 77904Arisht Spinning Mills Baddi (Himachal Pradesh) 80640VMT Spinning Company Limited Baddi (Himachal Pradesh) 46320Arihant Spinning Mills Malerkotla (Punjab) 114240Anant Spinning Mills Mandideep (Madhya Pradesh) 130944Vardhman yarns Satlapur (Madhya Pradesh) 288480Vardhman Fabrics (Yarns Division) Bhudhni(Madhya Pradesh) 115008Vardhman Yarns and Threads Ltd. Spinning Hoshiarpur (Punjab) 71440 Location SpindlesVardhman Spinning and General Mills Ludhiana (Punjab) 67744Vardhman Spinning Mills Baddi (Himachal Pradesh) 55440Auro Spinning Mills Baddi (Himachal Pradesh) 77904Arisht Spinning Mills Baddi (Himachal Pradesh) 80640VMT Spinning Company Limited Baddi (Himachal Pradesh) 46320Arihant Spinning Mills Malerkotla (Punjab) 114240Anant Spinning Mills Mandideep (Madhya Pradesh) 130944Vardhman yarns Satlapur (Madhya Pradesh) 288480Vardhman Fabrics (Yarns Division) Bhudhni(Madhya Pradesh) 115008Vardhman Yarns and Threads Ltd. Spinning Hoshiarpur (Punjab) 71440Spinning-Total 1048160 RotorsAuro Spinning Baddi (Himachal Pradesh) 1548Vardhman Fabrics Bhudhni(Madhya Pradesh) 5640Total 7188 VortexVardhman Yarns Satlapur (Madhya Pradesh) 640Total 64O.

Stiching Machines Garment business - formal shirts Location Production CapacityVardhman Nisshinbo garment company limited Ludhiana 5000 pieces/dayPost cured wrinkle free shirts 2500 pieces/dayRegular shirts 2500pieces/day Yarn & Fibre Dyeing Units Location Production CapacityVardhman Spinning and General Mills, Dye House Ludhiana (Punjab) 20 Tonnes per dayAuro Dyeing Baddi (Himachal Pradesh) 28 Tonnes per day day Fibre Dyeing 13 Tonnes per Yarn Dyeing 15 Tonnes per dayMahavir Mercerizing Unit Hoshiarpur

(Punjab) 7.5 Tonnes per dayTotal 55.5 Tonnes per day Fabric - Weaving Units Location Production CapacityAuro Weaving Mills Baddi (Himachal Pradesh) 264 loomsMahavir Spinning Mills Baddi (Himachal Pradesh) 224 loomsVardhman Fabrics Bhudhni(Madhya Pradesh) 820 loomsTotal 1308 looms Fabric Processing Units ( Finished Fabric) Location Production CapacityAuro Textile Baddi (Himachal Pradesh) 50 million meters per anuumVardhman Fabrics Bhudhni(Madhya Pradesh) 65 million meters per anuumTotal 115 million meters per anuum Sewing Thread Business Location Production CapacityVardhman Yarns and Threads Limited (Unit -I) Hoshiarpur (Punjab) 21 MT per dayVardhman Yarns and Threads Limited (Unit -II) Ludhiana (Punjab) 8 MT per dayVardhman Yarns and Threads Limited (Unit III) Perundrai (Tamil Nadu) 3 MT per dayVardhman Yarns and Threads Limited (Unit -IV) Baddi (Himachal Pradesh) 2 MT per dayTotal 34 MT per day Steel Business Location Production CapacitySteel Unit-Vardhman Special Steels Ludhiana (Punjab) 120000 MT er annum Acrylic Business Location Production CapacityFibre Manufacturing Unit-Vardhman Acrylic Ltd. Jhagaria (Gujarat) 20000 MT per annum OVERVIEW
GlobalizationVardhman ventured in to the global market in 1986 with an export value of one core to reach exports of $282 mn in FY 2010-11. Little wonder then, that Vardhman, today, exports 35% of its yarn production to more than 25 countries and has a strong presence in markets like the EEC, USA, Canada, China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East. Vardhman has a share of more than 6% in total Yarn exports from India. Similarly, vardhman also exports about 35% of its total fabric production. Its trusted, tested and reliable workforce, coupled with the latest technology, quality consciousness, customer oriented services and strong logistics has given Vardhman

MARKETS

Some of our prominent markets are Australia PortugalSouth Africa MoroccoTunisia TurkeyBrazil RussiaBangladesh Saudi ArabiaBelgium SingaporeChina Sri LankaCanada SpainColombia SwitzerlandEgypt ThailandGermany U.K.Greece UkraineHongkong UruguayIndonesia USAItaly VenezuelaJapan VietnamS. Korea NewzealandMalasiya Mauritius .

ALLIANCES
Vardhmans International Alliances GarmentsNisshinbo Textiles Inc., Japan Japan Mercerized YarnsKiyung Bang South Korea Sewing ThreadAmerican & Efird Inc., USA Exlan of Japan Fabric Dyeing & FinishingTokai Senko, Gassed Cotton YarnToho Rayon, Japan Acrylic FibreMarubeni Corp, and Japan

Fiber & Yarn DyeingNihon Sanmo Dyeing Co. Ltd., Japan

ENQUIRIES
YARNS Rana Harjinder,Vice President Exports,Email: ranaharjinder@vardhman.com CORPORATE OFFICE :Vardhman Textiles LimitedChandigarh Road, Ludhiana.Phone : +91-01612228943-48Fax: +91-0161-2222447 Standard Business Terms: All business is on irrevocable letter of credit term Lead Time For Grey Yarn: 15 to 30 daysFor Dyed Yarn: 30 to 60 daysFABRICS Mahesh AroraChief Executive - Marketing, Vardhman FabricsEmail: mahesharora@vardhman.com 5th Floor , Plot No. 19 , Sagar Plaza Building ,Laxmi Nagar,District Centre, Vikas Marg, New

YARNS - Product Profile

At Vardhman our portfolio of Yarns include the following. Click further to learn more about any of the following product segments. Grey Cotton Yarn Grey Acrylic Yarn Grey polyester cotton yarn Special Blended Yarns Crayons Rainbow Rangoli Gassed Mercerised Cotton Yarn Paragon Harmony Padam Daffodil Hank Dyed Acrylic Yarn Vardhman Knitting Yarn Speciality Yarns

YARNS - Machinery

PreparatoryReiter,

Trutzschler

Pre-SpinningReiter,

Cherry

Hara,

Toyoda.

SpinningLakshmi Reiter, Kirloskar Toyoda DoublingVolkman, Leewha, Vijaylakshmi

Post SpinningSchlaforst, Murata

YARNS - Integrated Yarn Dyeing Unit

1994 has witnessed a milestone toward our mission, to supply value added product i.e. cone and fibre dyed yarn and tops. A fully integrated dye house plant with technology from Nihon Synmo, Japan, the leader in dyeing technology in the world, emerged on the landscape of Vardhman. With setting up of this new dye house , the installed capacity to process has increased to 42.5 tons of Yarn and 13 ton of Fibre per day.

Technological Collaboration with Nihonsanmo, Japan. Dyeing 13 tons per dayYarn Dyeing 42.5 tons per day

Dyeing Capacity :-Fiber

YARNS - Operations
Assurance System The unique combination of man and machine, competing and supplementing each other with continuous increase in productivity has enable Vardhman to dexterously ripe the fruit of economies of scale and process variety of raw material required for variety of end products to textile. Our Evennes Results fall in 5% to 15% of Uster standards, achieved through Proper selection of Raw Material World class Pre-spinning and Spinning Facilities Technical Know How Human Skills 100% Quality

Shirting

Count range Ring spun Ne 20's to 80's Ring spun Blends 2/40's to 2/210's 100% cotton, Polyester cotton, Cotton stretch DowXLA, Cotton Tencel, Cotton Modal, Cotton Bamboo, Cotton silk, Cotton Nylon, Cotton Nylon stretch, Cotton Linen. Weave Yarn Dyed: Chambray, fil-a-fil, checks, stripes, Oxford, HBT Others (yarn dyed & piece dyed) Plain, twill, satin, oxford, dobby, herringbone, Pique Cord. Fabric weight 2-5.6 oz/yd'2Finished width 58"

Bottom weights

Count range Ring spun Ne 20's to Ne 2/80's Open end Ne 6's to Ne 16's 100% cotton, Polyester cotton, Cotton stretch DowXLA, Cotton Tencel, Cotton Modal, Cotton Bamboo, Cotton silk, Cotton Nylon, Cotton Nylon stretch, Cotton Linen Coolmax. Weave Chambray, fil-a-fil, checks, stripes, Oxford, HBT Others (yarn dyed & piece dyed) Plain, twill, Drill, satin, oxford, dobby, herringbone, Pique Cord, Honey comb Fabric weight 6.00 to 12.00 Oz.yd'2Finished width 58" to 60

Finishes

Soft, Peach, Mechanical stretch, Microsand, Easy to iron, Water resistant, Stain Release, Stiff finish, Airo finish, Carbon finish, Diamond finish, Airo enzyme, Soft Easy Care, Soil resistant, Thirsty finish, Feather touch, Banana Peel and to add Ammonia finish. Eco-Friendly Blends Bamboo, Organic Cotton, LinenAlso certified by FLO, OEKOTEX, SKAL.

Hand / Needle

Hand Embroidery People have always found deep personal pleasure and sense of satisfaction in creating articles of daily use and artistic works from basic equipment and materials. One of the crafts practiced since times immemorial is needlecraft and embroidery - the urge to create with colourful threads. Embroidery was used in Ancient Egypt to decorate the hems of royal robes, in tapestries in the Middle Ages, and in ladies' samplers during the Colonial and Victorian eras. It continues as an art form today. Hand embroidery is used to decorate wall hangings, pillowcases, quilts and table runners. Hand embroidery differs from counted cross stitch in that it uses many different types of stitches to achieve texture and interest, whereas counted cross stitch uses a single stitch and relies on color and shading for texture. Five stitches form the basis for hand embroidery. The stitches are outline, satin, lazy daisy, cross and French knot. Hand embroidery is a beautiful art that almost anyone can learn. It is an art that should be preserved and well worth learning. The hand embroidery market in India is segmented into three segments.

References[edit]
"Vardhman Group History". Official website. 2011-06-21. Retrieved 2011-06-21. "Vardhman Group Performance". Official website. 2011-06-21. Retrieved 2011-06-30.

"Vardhman Group Performance". Official website. 2011-06-21. Retrieved 2011-06-30.