Arvind mills in the era of WTO

MULTI FIBRE AGREEMENT

• Multi fibre agreement was signed in the year 1974 restricting the import of textile through licencing in the global txtile market.

• With the provision of WTO , MFA was terminated and replaced by Agreement on textiles and clothing on January 1, 1995.

Company introduction

• Arvind Mills was established in 1930. It was founded by the three brothers Kasturbhai Lalbhai, Narottambhai Lalbhai and Chimanbhai Lalbhai one of the leading families of Ahmedabad.

• Arvind Mills Ltd. is incorporated with share capital Rs.2500000 in Ahmedabad

• Currently Arvind mills is ranked 4th in world denim production.

PHASE-1

• Profit declined in 1987.• Global demand of denim was high so they

decided to focused on denim.• In 1991 it became 4th largest denim

manufacturer.• 1998 company becomes 3rd largest denim

manufacturer.• Company defaulted on its loans in 2001 and

decided to go for financial restructuring to clear its debd.

PHASE-2

• Various steps were taken which improved the profitability of the busines

• Company has geared up for exports by focusing on various aspects-

• Diversified product line- company owned many brands Newport, Ruf and Tuf, Flying Machine, Excalibur.

• They shifted from denim fabric to shining fabric to to garments to yarn to many others

HIGH QUALITY/ LOW COST MOVEMENT

• It was the first fabric company in asia to be accredited with ISO 14001certification.

• It was the first company which implemented ERP, SAP in 1997.

• Global sourcing- company has a policy of global sourcing to save cost as well as to get finest quality raw material.

Business divisions

• Fabric division

• Garment export division