Incorporated in 1990 as a 100% EOU, Arun Processors was set up to manufacture and export knitted processed fabric in technical collaboration with Terlinden Textil, Switzerland. Commercial production of grey fabric commenced in Feb.'94. Processing facilities commenced commercial production in Aug.'94. There was a cost overrun in the above project, partly due to higher expenditure on an effluent treatment plant to achieve zero discharge by applying the latest techniques.
The company manufactures cotton knitted fabrics. The company entered into tie-ups with Gericks, Germany; Unifin, Italy; and Jethwani Enterprises, Malaysia; to export its entire production in the first year. The company exports its product to European countries as well as neighboring countries Srilanka, Bangladesh, Maldives etc.
During 1996-97, the company issued 17,50,000 equity shares of Rs 10 each to Promoters under preferential allotment to mobilise funds for the working capital requirements.
Due to the continued recession in the textile industry during the year 2000-01, the company has been registered with the BIFR.