Arvind Mills – a Turnaround Story
Arvind Mills – A turnaround story
When the World Trade Organisation removed the quota restrictions on countries exporting garments on January 1, 2005 it opened up a new era for the Indian textile industry, thereby ending forty long years of protectionism by the developed countries. It is estimated that approximately 47% of the restricted markets will be opened up for free trade. Hence it is good news for companies in the textile sector like Arvind Mills which is considered to be the largest textile exporter in India (51% of its revenues) and the fourth largest denim manufacturer in the world. But all was not well with Arvind Mills and it had to really fight its way back to success.
The Background
During the Swadeshi Movement where foreign made fabrics were being boycotted three brothers from Gujrat, Kasturbhai, Narottambhai and Chimanbhai sensed an opportunity for Indian made fabrics and decided to set up a mill to produce super fine fabrics and a company called Arvind Mills was born in 1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.
In the mid 1980 's the textile industry faced another major crisis. With the power loom churning out vast quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of closure. Until 1987, like any other textile company, Arvind Mills had a presence only in conventional products like sarees, suiting, low value shirting, and dress materials. Realizing the bleak growth prospects for textiles in general, Arvind Mills identified denim as a niche
When the World Trade Organisation removed the quota restrictions on countries exporting garments on January 1, 2005 it opened up a new era for the Indian textile industry, thereby ending forty long years of protectionism by the developed countries. It is estimated that approximately 47% of the restricted markets will be opened up for free trade. Hence it is good news for companies in the textile sector like Arvind Mills which is considered to be the largest textile exporter in India (51% of its revenues) and the fourth largest denim manufacturer in the world. But all was not well with Arvind Mills and it had to really fight its way back to success.
The Background
During the Swadeshi Movement where foreign made fabrics were being boycotted three brothers from Gujrat, Kasturbhai, Narottambhai and Chimanbhai sensed an opportunity for Indian made fabrics and decided to set up a mill to produce super fine fabrics and a company called Arvind Mills was born in 1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles and 1122 looms it was one of the few companies in those days to start along with spinning and weaving facilities in addition to full-fledged facilities for dyeing, bleaching, finishing and mercerizing. Steadily producing high quality fabrics, year after year, Arvind took its place amongst the foremost textile units in the country.
In the mid 1980 's the textile industry faced another major crisis. With the power loom churning out vast quantities of inexpensive fabric, many large composite mills lost their markets, and were on the verge of closure. Until 1987, like any other textile company, Arvind Mills had a presence only in conventional products like sarees, suiting, low value shirting, and dress materials. Realizing the bleak growth prospects for textiles in general, Arvind Mills identified denim as a niche
References: 1. Url: "http://en.wikipedia.org/wiki/Arvind_Mills" 2.’ Fruits of Freedom’ Business World, May 05, 2006, 3. ‘Too little too late’, Lata Jishnu, Business World, November 15, 2004, 4. Url: Face to Face: Interview with Sanjay Lalbhai, on March 07, 2007 retrieved from the website www.fibre2fashion.com, 5. The Hindu Business Line, Wednesday, Apr 10, 2002, 6. Url: www.arvindmills.com Bindu Nair Faculty - IMM