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