Mafatlal Industries well set to expand denim, fabric divisions

Mafatlal Industries Ltd. (MIL), one of India’s largest textile manufacturers based in Mumbai, in a major initiative, amalgamated Mafatlal Denim Ltd. and Mishapar Investments Ltd. with itself with effect from April 1, 2012, to benefit from a few integration synergies. The post-amalgamated entity of MIL represents the flagship of the group, with 2012-13 revenues of Rs. 840.38 crores and a net profit of Rs. 37.16 crores.

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“Following the amalgamation, capacity expansion across our denim and fabric divisions will strengthen our sectoral position”, says Mr. Hrishikesh A. Mafatlal, Chairman, Mafatlal Industries Ltd.

The company manufactures an extensive range of fabrics (suiting and shirting, twills, voiles, prints, poplins, cambric, fine lawns, school uniforms, corporate and institutional wear, bed and bath linen, among others, in polyester or viscose and polyester wool blends), specialty and fashion denims and readymade garments, accounting for cumulative sales of over 80 million metres per annum, with a pan-India sales coverage comprising of 400 dealers, 35,000 retail points, several institutional customers and domestic and international buying houses.

The company produces some of the finest fabrics in the country in a count range of 7’s to 140’s, addressing the needs of some of the most demanding customers in India and abroad. Its products are marketed principally under the ‘Mafatlal’ brand.

MIL’s manufacturing facilities are located at Navsari near Surat and at Nadiad near Ahmedabad. Both units are well equipped with state-of-the-art technology having open-end and ring spinning frames, shuttle-less looms, combi-bleaching range, continuous dyeing range and modern rotary printing machines, coupled with customer-accredited quality assurance laboratories and environment certifications.

Enhanced capacities

The rejuvenated Mafatlal Industries has added denim to its comprehensive fabric and textile range. The addition enjoys attractive prospects, since almost half of India’s 1.2-billion population is in the age group of 20-35 years, and yet India’s per capita denim consumption of 0.3 pairs compared to two pairs in the US.

“At Mafatlal Industries, we are well placed to capitalize on this correcting under-consumption. We have a wide range of fashion denim products suitable for men, women and children; we also address the demanding needs of an international clientele. In line with this optimism, we are expanding our denim and fabric capacities. We expect that this expansion will widen our portfolio, strengthen our brand and enrich client relationships”, says Mr. Mafatlal.

The company believes that the amalgamation will enhance its position as a one-stop textile shop, capable of satisfying the requirements of the customer and meet the market demand in India and abroad. As a result, MIL will be able to utilize its maximum capacity, minimize idle assets and achieve cost efficiency. The combined operations will strengthen procurement economies among raw material and other resource suppliers. Increased knowledge sharing with the new entity will lead to technological innovations which can compete with the latest trends.

Going forward, the company expects to strengthen its relationship with Mafatlal family shops in order to strengthen its direct retail presence, focus on the growing markets of Tier-III and IV Indian towns, key global markets, governmental and institutional requirements and to start new initiatives in e-commerce to enhance its sales. MIL’s joint venture with the Al-Fahim Group will provide the company an access to the UAE and GCC markets.

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In the competitive global business environment, MIL has been increasingly focusing on R&D. Expensive dyes used for manufacturing were replaced with economical good quality dyes. Being an eco-friendly process, bio-scouring was introduced for bleaching at yarn stage, thereby improving yarn handling.

Cool comfort finish was developed in polyester and cotton fabrics. Natural stretch fabric cotton, polyester and viscose (high twist), linen and cotton blends were developed in white, yarn dyed and solid-dyed fabrics. Also, the company developed anti-microbial finishes in polyester and cotton fabrics.

An amount of Rs. 43 crores was spent on capex in the Nadiad and Navsari factories during 2012-13. The denim plant at Navsari continues to run at full capacity. An additional capex of Rs. 28 crores was spent during the year to further increase the denim capacity. The captive power co-generation plant of 3 mw capacity will be operational by March 2014. This will reduce the cost of power and increase its production capacity.

A new version of spectrophotometer, software, an auto colour dispensing unit and a new CAD system for design development have been installed in its R&D lab. These facilities will improve the company’s competitiveness in the domestic and international markets in terms of cost and quality as well as focus on higher value-added products resulting in improved profitability.

The company’s research laboratory has received accreditation certificates from Mark & Spencer and the UK-based NEXT. Its denim fall-winter 2012 collection was well accepted by the customers.