Over the last centuries, the demand for Azerbaijani carpets increased worldwide. In its turn, it led to further development of carpet weaving and the establishment of carpet weaving artels and workshops. In 1925 as a result of uniting several workshops and artels “Azerkhalcha” Carpet Union was created first time in the history. The establishment and development of carpet weaving art is closely related with the name of Jabrayil Ahmadov, prominent carpet artist and merchant, who wrote his name in history as the founder of "Azerkhalcha" Carpet Union.

Later Azerbaijani carpet weaving art kept its development in several ways and became multifaceted.

“Azerkhalcha” Scientific and Creative Production Union was established in 1952. Then it was subordinated by the local Ministry of Industry as the only union specializing in carpet manufacturing. An experimental artistic laboratory aimed at researching characteristics of carpet weaving operated under the union. The activity of this laboratory is directly related to the name of Latif Karimov, the People’s Artist of Azerbaijan, carpet weaver and artist, the founder of the scientific and research theory of Azerbaijan carpet weaving art. Azerbaijan carpets were long classified either as oriental carpets or under the term "Caucasian." However, L. Karimov's academic research has brought these treasures back to their origins, demonstrating that around 98% of the so-called Caucasian carpets, now showcased in museums worldwide, are actually Azerbaijani.

To achieve the goal of bringing attention to all the knowledge, discoveries, tangible experiences, ornaments, compositions, types, schools, and varieties of Azerbaijani carpets worldwide, Latif Karimov published the first volume of his book "Azerbaijani Carpets" in 1961, followed by the next two volumes in 1983.

This book was republished in 2022 as part of the Xalq Bank's "The National Heritage" project, in collaboration with Azerkhalcha.

Thus, Azerbaijani carpet weaving had gained significant fame in the world art scene by the late twentieth century, leading UNESCO to hold an International Symposium dedicated to Eastern carpet art specifically in Baku.

Latif Karimov's direct involvement led to the establishment of the Azerbaijan Carpet Museum, which stands as the largest of its kind worldwide and in the East. This vision was realized in 1967. With significant support from the national leader Heydar Aliyev, the first permanent exhibition of the museum was held in 1972, marking the beginning of its journey.

Latif Karimov used to tell his students: “Cherish the carpet. It's a constant companion that never leaves you stranded, never lets you down. The carpet always protects, defends, helps, and brings joy to you!”

The Azerbaijan Carpet Museum, the largest carpet museum in the world, opened its first permanent exhibition in 1972 with significant support from National Leader Heydar Aliyev. Latif Kerimov, a prominent figure, often imparted wisdom to his students, "Cherish the carpet. It is a constant companion that will never leave you, never let you down. The carpet always protects, guards, helps, and brings joy!"

Researchers and artists Djafar Mudzheri and Gulam Babai made noteworthy contributions to the technological aspects of Azerbaijani carpet production.

Additionally, talented artist Kamil Aliyev played a crucial role in the development of Azerbaijani carpet weaving, dedicating his life to preserving traditions and advancing the "Azerkhalcha" Union. For a decade, from 1995 until his passing, Kamil Aliyev served as the chief director of the Production Association "Azerkhalcha”, dedicating his life to preserving and advancing the traditions of carpet weaving.

Under the Decree of the President of the Republic of Azerbaijan, Ilham Aliyev, dated May 5, 2016, the Open Joint Stock Company "Azerkhalcha" was established. "Azerkhalcha" has since expanded to 14 branches in various districts of Azerbaijan including Guba, Nardaran, Absheron, Terter, Goradiz, Shamkir, Khachmaz, Aghdam, Ismailly, Gabala, Gazakh, Shabran, Kurdamir, and Lankaran.