Aditya Birla Fashion and Retail Limited - Portfolio (Research)

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Aditya Birla Fashion and Retail Limited

Resilience – Y3S2

Table of Contents
Organization – Week 2:.........................................................................................................................3
Company Information:......................................................................................................................3
Subsidiaries:..................................................................................................................................3
Lead with Grace:...............................................................................................................................3
Vision - ABFRL:..............................................................................................................................3
Mission – ABFRL:............................................................................................................................3
CSR Strategy:....................................................................................................................................4
Sustainability:....................................................................................................................................4
The Power 5:.....................................................................................................................................5
Consumer Segments:.........................................................................................................................6
Revenue Division:.........................................................................................................................6
Who are the most important stakeholders?........................................................................................9
What roles does your company play within the industry?..................................................................9
Management Summary – Week 2:.......................................................................................................10
Supply Chain – Week 3:......................................................................................................................11
Management Summary:...................................................................................................................23
Bibliography:.......................................................................................................................................24
Organization – Week 2:
Company Information:
ABFRL has a network of 3468+ stores with a presence across 25,000 multi-brand
outlets(approx.) with 6,500+ points of sales in department stores across India. ABFRL was previously
known as Pantaloons Fashion & Retail Limited before its acquisition by the Aditya Birla Group.

Subsidiaries:
Jaypore E-Commerce Private Limited
- Inda
- Retailing
TG Apparel & Decor Private Limited
- India
- Retailing
Jaypore Inc.
- USA
- Retailing
Finesse International Design Private Limited:
- India
- Manufacturing and retailing.

Lead with Grace:


ABFRL has a program that includes women being leaders instead of what used to be common in the
business market to be only men. This program defines a small fraction of the awareness of ABFRL
and its ethicality.

Vision - ABFRL:
To passionately satisfy Indian consumer needs in fashion, style and value, across wearing occasions in
Apparel and Accessories through strong brands and high-quality consumer experience with the
ultimate purpose of delivering superior value to all our stakeholders. (AFBRL, 2021).

Mission – ABFRL:
To deliver superior value to our customers, shareholders, employees and society at large. (ABFRL,
2023).

CSR Strategy:
Our focus is on the all-round development of the communities around our plants located mostly in
distant rural areas and tribal belts. All our Group companies —Grasim, Hindalco and UltraTech have
Rural Development Cells, which are the implementation bodies.

Our development partners are government bodies, district authorities, village panchayats and the end
beneficiaries — the villagers. The Government has, in their 5-year plans, special funds earmarked for
human development and we recourse to many of these.
At the same time, we network and collaborate with like-minded bilateral and unilateral agencies to
share ideas, draw from each other's experiences, and ensure that efforts are not duplicated. At another
level, this provides a platform for advocacy.

Sustainability:
Sustainability at ABFRL is not just an activity, it's our approach to business growth. So, when the
COVID-19 pandemic hit the industry in a major way resulting in societal and economic shutdown, we
proceeded to take initiatives towards the health and safety of our employees, customers and the
community. We advanced our efforts in the area of environmental sustainability too, as we believe
that the health of people and the planet are interconnected. (ABFRL, 2021).
Our partnerships strengthened across the value chain to shared solutions for protecting worker
livelihood and sustaining trust. Our work on
digitalisation and transparency gained further
momentum demonstrating positive stakeholder
impact.
Despite the pandemic, we continued to
accelerate progress on sustainable initiatives to
be more competitive in the market for the world
that will emerge post-pandemic. We paced our
transition through the crisis by safeguarding
employees, capital, value chain partnerships,
channels, and the trust of our customers.

S&P Global Corporate Sustainability


Assessment rated us as Asia's Most
Sustainable Company and eighth best
globally, in the Textiles, Apparel and
Luxury Goods sector.

The Power 5:
The "Power of 5" is ABFRL's unique way of saluting, celebrating and cheering our people's
inspirational act of integrity, commitment, passion, seamlessness and speed over the last decade.
Through this platform, they bring to you 25 inspiring stories of our people who have exemplified
living the values, which whilst selected at random tell a powerful story of our voyage with values.
(ABFRL, 2023).
Those values consist of:
1. Integrity
Acting and taking decisions in a manner that is fair and honest. Following the highest standards of
professionalism and being recognised for doing so. Integrity for us means not only financial and
intellectual integrity but encompasses all other forms as are generally understood. (ABFRL, 2023).
2. Commitment
On the foundation of integrity, doing all that is needed to deliver value to all stakeholders. In the
process, be accountable for our actions and decisions, those of our team and those on the part of the
organisation for which we are responsible. (ABFRL, 2023).
3. Passion
An energetic, intuitive zeal that arises from emotional engagement with the organisation makes work
joyful and inspires each one to give his or her best. A voluntary, spontaneous and relentless pursuit of
goals and objectives with the highest level of energy and enthusiasm. (ABFRL, 2023).
4. Seamlessness
Thinking and working together across functional groups, hierarchies, businesses and geographies.
Leveraging diverse competencies and perspectives to garner the benefits of synergy while promoting
organisational unity through sharing and collaborative efforts. (ABFRL, 2023).
5. Speed
Responding to internal and external customers with a sense of urgency. Continuously striving to
finish before deadlines and choosing the best rhythm to optimise organisational efficiencies. (ABFRL,
2023).
Consumer Segments:

Figure 1. (ABFRL, 2022).

Sustainability Highlights

Energy – 33% of energy coming from renewable energy sources across ABFRL operations.
Water Positive – 41% renewable water i.e 61,827 kl rainwater harvested and artificially recharged
within premises.
Sustainable Products – 61% Garments of ABFRL have at least one out five sustainable attributes.
Raw material, production process, farm & factories, sustainable packaging and people.
Carbon Footprint – 6.6% reduction in scope 1 and scope 2 emissions across all ABFRL operations.
Zero-waste-to-landfill status – Achieved across all ABFRL facilities.
Green Building – 2 lakh sq ft. of our built environment is under the green building certification
process under the IGBC Green Logistics Parks and Warehouses rating system.
One facility certified Leed Zero Water under USGBC rating system.
Packaging – 86% Sustainable Packaging.
Who are the most important stakeholders?
Corporate Governance:
The Aditya Birla Group is one of the pioneers in the field of corporate governance. As a part of the
Group, ABFRL is committed to continuously adopting and adhering to the best governance practices,
to achieve the ultimate goal of making the Company a value-driven organisation. (AFBRL, 2023).
Strategic Partnership – Galeries Layafette:
Aditya Birla Fashion and Retail Limited (ABFRL) enters into a strategic partnership with Galeries
Lafayette, renowned globally for its flagship location at Boulevard Haussmann in Paris, to open
luxury department stores and a dedicated e-commerce platform in India. The flagship stores in
Mumbai and Delhi will bring more than 200 luxury and designer brands under one roof. (AFBRL,
2023).
The Mumbai's 90,000 square feet flagship store is expected to be operational by 2024. It will be
housed across two historic buildings that recently heralded their century at the heritage precinct of
Fort, the city's leading commercial and cultural hub. The building is currently being designed by the
architectural firm Virgile & Partners, which has worked extensively on storied department stores
globally. Pike Preston is the advisor on record for this collaboration. (AFBRL, 2023).
The 65,000 square feet store in
Delhi, expected to be operational
in 2025, will be at DLF Emporio,
one of India’s largest luxury
malls. Galeries Lafayette, Delhi
will complement the current
offering at the mall with a set of
young, exciting designer brands
across multiple categories.
(AFBRL, 2023).

What roles does your


company play within the
industry?
- Providing luxuries and premium brands for the customer.
- Sustainability leader in its market.
- Warehouses.
Management Summary – Week 2:
Aditya Birla Fashion and Retail Limited (ABFRL) is a leading fashion and lifestyle company in India.
With a portfolio of popular brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter
England, the company operates over 3,000 retail stores across the country.
ABFRL's revenue for the fiscal year 2020-2021 was INR 5,261 crores, with a net loss of INR 547
crores, impacted by the Covid-19 pandemic.
The company has taken several measures to adapt to the changing market conditions, such as
expanding its e-commerce platform, optimizing store operations, and enhancing its product offerings.
ABFRL aims to strengthen its position in the fashion and lifestyle segment through innovation,
sustainability, and customer-centric strategies.
Supply Chain – Week 3:

Offices:
Head Office – Bengaluru
Registered Office – Mumbai

Factories:
Crafted Clothing – Bengaluru
Fashion Craft – Bengaluru
Europa Garments – Bengaluru
Classical Menswear – Bengaluru
English Apparels – Bengaluru
Haritha Apparels – Bengaluru
Alpha Garments – Bengaluru
Little England Apparels – Thali
Mancheswar Apparels Limited – Mancheswar, Odisha.

Warehouses:
MF&L (Madura Fashion and Lifestyle)
- Attible Warehouse, Bengaluru
- Hoskote Warehouse, Bengaluru
- E-Commerce Warehouse, Bengaluru
Pantaloons
- Warehouse 1 – Bengaluru
- Warehouse 2 – Bhiwandi
- Warehouse 3 – Hooghly
- Warehouse 4 - Gurgaon

Footprint
ABFRL has focused on rapid growth through a multi-
channel distribution strategy. Today we are present in more than 900 cities. Together with increasing
our presence in existing territories, we are harnessing the tremendous opportunities in the vast Tier 2,
3 and 4 markets of the country.
We are already executing our expansion plan through appropriate business models. This is helping us
gain a strong position across markets to meet the growing demand for high quality, ready-to-wear,
branded apparels.
Factories of ABFRL are mostly located in Bengaluru. Bengaluru is located in the lower section of
India in the middle, so it is not a city that is directly linked to the sea,
Bengaluru:
Bangalore’s urban infrastructure has not kept pace with its fast pace economic growth. To improve
connectivity and congestion problems, the city has invested heavily in road and public transportation
projects in the last 10 years. (India Briefing, 2022).
Bengaluru is a city that is located in the Karnataka state of India.
Bengaluru its infrastructure for distribution mainly consists of train distribution.
Train:
- Krantivira Sangolli Rayanna
- Yesvantpur Junction Railway Station
- Krishnarajapuram
- Bengaluru Cantt
- Bangalore East
- Baiyyappanahalli
Airport:
- Kempegowda International Airport Bengaluru

Public transport:
A rapid transit system called Namma Metro runs across the city – making it easy to use public
transport. The system has two operational corridors (42.3 km elevated and underground rail network),
servicing 41 stations. Once complete, Namma metro will connect central locations in Bangalore to
outer regions. (India Briefing, 2022).

Road
Bangalore has an extensive network of roads connecting it to other parts of Karnataka and India. The
Bangalore Metropolitan Transport Corporation (BMTC) offers bus services with high frequency
routes that form a grid around the twelve major roads that run through the city center. (India Briefing,
2022).

Railway
The Bangalore Railway Station is the main railway station in the state of Karnataka. It connects
Bangalore to most cities in Karnataka, as well as other metros like Mumbai, Chennai, Kolkata, and
Delhi. The City railway station is an important junction for Indian train travel and sees over 200,000
commuters each day. (India Briefing, 2022).

Air
The city’s Bengaluru International Airport, which opened in 2008, is one of the busiest airports in
India, servicing 10 domestic airlines and 21 international airlines. The terminal is located 40
kilometers from the center of Bangalore, with an airport shuttle service operated by BMTC
connecting the two. (India Briefing, 2022).

Distribution:
ABFRL (Aditya Birla Fashion and Retail Limited) distributes its supplies to its stores across different
countries through various channels. The company has a well-established global supply chain network
that ensures timely and efficient delivery of products to its retail outlets.
Manufacturing: ABFRL manufactures most of its products in-house, which helps to maintain
consistent quality and reduce lead times. The company has several manufacturing units across India
and other countries that produce a range of apparel and fashion accessories.
Distribution Centers: ABFRL has distribution centers located in different regions of the world,
including India, Southeast Asia, the Middle East, and the CIS countries. These distribution centers
help to consolidate the products manufactured in different units and dispatch them to the respective
retail outlets.
Logistics: ABFRL partners with third-party logistics providers to ensure smooth transportation of
goods from its distribution centers to its retail stores. The company uses various modes of
transportation, including road, air, and sea, depending on the distance and urgency of the shipment.
E-commerce: ABFRL's e-commerce platform also plays a crucial role in distributing supplies to its
customers worldwide. The company has a well-established online distribution network that enables
customers to purchase products from its website and receive them at their doorstep.

Supply Chain Sustainability :


We, at ABFRL, strive to operate in a more sustainable manner throughout the supply chain & believe
that by working closely with our suppliers, we can collectively, create positive impact. We always
look for ways to collaborate and improve standards further. (ABFRL, 2020).
Our key focus in supply chain is to build on two important issues;
- Ensuring that the people who make our clothes are fairly treated & works in safe & healthy
working conditions.
- Make a product in a way that has minimum impact on environment.
We have moved beyond an audit-based approach, and our supplier development activities involve
sustainable collaboration, cooperation and engagement between ABFRL and our suppliers to ascertain
responsible sourcing. The ABFRL Vendor Code of Conduct, Sourcing from Sustainable Supplier
Base, Supplier Sustainability Assessment, Quality Management, Chemical Management, vendor
collaboration initiatives. (ABFRL, 2020).
Multi Distribution Strategy:
Your Company has been growing rapidly through its multi-channel distribution strategy, and over last
one year, has consummated one of its largest-ever store expansion in the history of your Company. A
significant part of this expansion was into tier-3 and tier-4 cities, though Peter England’s small town
format. The favorable performance of this format allowed the Company to open more than 200 stores
in the first year, thereby unlocking potential markets that were previously unpenetrated by branded
players.
With the expansion of retail opportunity across India, your Company will continue to explore new
markets through its brick and mortar stores alongside strengthening its omni-channel play. Your
Company believes that an extensive distribution network across markets will help meet the growing
demands for high-quality branded apparel.
Your Company also views e-commerce as an increasingly relevant and significant channel, a fact
highlighted by its increasing contribution in the revenues. Your Company’s lifestyle brands business
recorded ` 364 Crore revenue from its e-commerce channel, a growth of 18.7% over the previous
year. Your Company’s Pantaloons business has given a big boost to its e-commerce capability by
launching a revamped website.
The business recorded sales of ` 38.20 Crore, with a growth of 2.1% over the previous year. Your
Company’s other brands are also now planning to launch dedicated e-commerce websites and apps to
cater to their customer’s demands

Definition - Multi Distribution Strategy:


A multichannel distribution system refers to a sales and marketing distribution method that
implements more than one channel or store to reach customers and increase sales.
Every multichannel distribution system is unique to the business, as it can include different channels
such as an online store, one or more physical stores, social media platforms, and major online
marketplaces.
- Have all interactions within the system been considered?
- Are the perspectives and interactions of all stakeholders in?
- Are all the processes and roles within the Supply Chain understood?
- Have all the needles from all the connections from Supply Chain perspective been identified?
- Draw the supply chain of your industry.
- What does your company’s supply chain look like?
- What supply chain risk are involved?
- How can these risks be reduced?
- What would you advice management of your company about its current global supply chain?
- Describe how and where value is created within your supply chain.
- What position does your company take within the supply chain?
- How is the supply chain organized within your company?
- What stakeholders are linked to your company and the supply chain?
- What is the market power of the different stakeholders?
- What wicked problems occur or could occur within the supply chain and the relationship
between stakeholders?
- What is the difference between an agile and resilient supply chain?
Management Summary:
The supply chain of ABFRL is a critical component of its operations and encompasses a range of
activities, including sourcing, manufacturing, logistics, and distribution.
ABFRL has a global sourcing network that spans across India, China, Bangladesh, Vietnam, and
Indonesia, enabling it to access a wide range of raw materials and finished goods. The company
works closely with its suppliers to ensure the quality and timely delivery of materials, and it has
implemented various sustainability initiatives to improve the environmental and social impact of its
supply chain.
In terms of manufacturing, ABFRL has a network of over 20 factories in India and Bangladesh that
produce a wide range of products, including apparel, footwear, and accessories. The company has
invested in modernizing its factories and adopting advanced technologies to improve efficiency and
reduce its environmental footprint.
Logistics is another critical aspect of ABFRL's supply chain. The company has a network of
warehouses and distribution centres across India, which enables it to efficiently manage its inventory
and fulfil customer orders. ABFRL also leverages technology, such as RFID and barcode scanning, to
improve inventory accuracy and reduce wastage.
Finally, ABFRL's distribution strategy is centred around a combination of offline and online channels.
The company has over 3,000 retail stores across India and a growing e-commerce business. ABFRL
has also partnered with leading online marketplaces, such as Myntra and Flipkart, to reach a wider
audience.
In summary, ABFRL's supply chain is a key strength that enables the company to offer high-quality
products to customers across India and beyond. By leveraging its global sourcing network,
modernizing its factories, and optimizing its logistics and distribution processes, ABFRL is well-
positioned to continue to grow and succeed in the dynamic fashion and lifestyle industry.
Week 4 – Organization and People:
Bibliography:
Annual Report ABFRL. (2022). ABFRL. Retrieved February 9, 2023, from

https://www.abfrl.com/docs/investors/annual_reports/ABFRL-FY-2022.pdf

Briefing, I. (2021, February 5). Bengaluru: Economy, Industries, and Infrastructure - India

Briefing News. India Briefing News. https://www.india-briefing.com/news/city-

spotlight-bangalore-6371.html/#:~:text=Given%20the%20city's%20reputation

%20as,prevalent%20in%20the%20city's%20economy.&text=Bangalore%20is%20the

%20leader%20in%20India's%20biotechnology%20industry.

Corporate Governance. (n.d.). ABFRL. Retrieved February 9, 2023, from

https://www.abfrl.com/corporate-governance/

Corporate Presentation. (2021, March). ABFRL. Retrieved February 9, 2023, from

https://www.abfrl.com/investors/investor-day/ABFRL_Corporate%20Presentation_March

%2021.pdf

Strategic Partnership With Galeries Lafayette. (2022, November 7). ABFRL. Retrieved February 9,

2023, from https://www.abfrl.com/docs/investors/announcements/Strategic-partnership-with-

Galeries-Lafayette.pdf

Vision and Values - Aditya Birla Group. (n.d.). abg.com.

https://www.adityabirla.com/about-us/vision-values

Wikipedia contributors. (2023, January 27). Aditya Birla Fashion and Retail. Wikipedia.

https://en.wikipedia.org/wiki/Aditya_Birla_Fashion_and_Retail

https://sustainability.adityabirla.com/pdf/reportspdf/ABFRL-Sustainability-Report-2020-21.pdf
https://sustainability.adityabirla.com/ABG-ESG-Report/index.html
https://sustainability.adityabirla.com/reports.php

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