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From setting up the first textile mill in Ahemdabad to becoming the third-largest textile mill in the country, Mafatlal Industries has built a foundation on passion, commitment, and service. After establishing a base in Mumbai in 1919, there has been no looking back for the pioneering textile company. Divya Shetty engages in a discussion with Priyavrata Mafatlal, Managing Director, Mafatlal Industries, who discusses the transformative changes in the textile industry throughout the years and highlights the latest innovations introduced by their company.

Mafatlal Industries has been in the industry for over 118 years. How has the company’s manufacturing footprint grown over these years?

Over the decades, the Indian and global environment has significantly kept evolving and we as an organisation have needed to adapt to all these changes, which include macro and micro trends, product processes, costs, supply chains, and most recently – sustainability. Currently, we have a vast range of products that include, school, corporate, medical, and defence uniforms, men’s and women’s printed and dyed fabrics, shirting and suiting fabric, home furnishings, and health and hygiene products like sanitary pads, baby diapers, and adult diapers.

How has the textile industry changed in the last few years?

The textile industry has witnessed significant transformations in recent years and has embraced technological advancements, sustainability practices, and shifting consumer demands.

Technological advancements have revolutionised the textile industry, bringing automation and digitisation to manufacturing processes. This has improved efficiency and precision, while the integration of smart textiles, wearable technology, and digital printing has sparked innovation. E-commerce platforms and digital marketing strategies have also transformed how businesses connect with customers.

Sustainability has become a focal point in the industry, with a shift towards eco-friendly materials, recycling, and reduced water and energy consumption. Circular economy initiatives and the use of organic and recycled fibres have gained prominence, driven by consumer demand for transparency and ethical sourcing throughout the supply chain.

Changing consumer preferences have propelled customisation, personalisation, and fast fashion in the textile industry. With a growing awareness of environmental and social issues, there is an increasing demand for sustainable and ethically produced textiles. Digital platforms and social media have empowered consumers with greater access to information and choices.

Globalisation has played a significant role, with seamless international sourcing and distribution enabled by global trade agreements and logistical advancements. Emerging markets in Asia have become key players in textile production and consumption. Increased competition has led companies to differentiate through innovation, quality, and sustainability.

Despite economic uncertainties and supply chain disruptions, the industry has demonstrated resilience and adaptability. Collaboration, strategic partnerships, and investments in research and development have become essential for success. The COVID-19 pandemic has further accelerated the adoption of digital technologies, remote working, and e-commerce

Key themes

Sustainability and recycling are key themes for the future of business. The textile industry has been significantly impacted by the COVID-19 pandemic, with a contraction expected until at least 2024. India’s textile and apparel industry is facing a crisis due to reduced consumer spending and global factors.

However, the industry is adapting to new demands, such as increased demand for natural fibres and sustainable practices. Issues like responsible manufacturing, eco-friendly clothing lines, and traceability are important. Circular practices and recycling can help reduce emissions and maximize benefits. By 2030-2035, most organized sector textile manufacturers are expected to adopt sustainable models of doing business. Tamil Nadu sets an example with green energy use and zero liquid-discharge processes. Embracing such measures will advance sustainability goals in the industry.

Looking ahead, our company remains committed to embracing change, investing in innovation, and leveraging our heritage to lead the textile industry towards a sustainable and prosperous future.

Which of the product category offered by Mafatlal is in the highest demand today?

Education and Healthcare are two segments which have been on a consistent growth path over the years and they almost never seem to be affected by global sluggishness. Our products like uniforms, sanitary pads and diapers which predominantly caters to these two segments are the fastest growing product lines in our business currently.

Does Mafatlal Group have global presence? If yes, how are you planning to expand it further?

While our global sales presence is across regions like the Middle East, South and South East Asia, Europe and parts of the United States, with India’s impending growth story over the next few years, our focus is to cater to the huge demand arising from our country, first.

What kinds of challenges textile manufacturers are currently facing in India?

Raw material availability: Textile manufacturers often face challenges in sourcing quality raw materials like cotton, silk, and synthetic fibres. Fluctuations in availability, pricing, and quality can impact production and profitability.

Rising costs: The industry grapples with increasing costs of raw materials, labor, energy, and transportation. This puts pressure on profit margins and requires effective cost management strategies.

Competition from low-cost countries: Indian textile manufacturers face intense competition from countries with lower labor costs, such as Bangladesh, Vietnam, and China. This requires finding ways to enhance competitiveness through innovation, quality, and efficiency.

Infrastructure and logistics: Inadequate infrastructure, including transportation, storage, and warehousing facilities, can lead to delays, increased costs, and inefficiencies in the supply chain.

Compliance and regulations: Textile manufacturers must comply with a wide range of regulations and standards related to labour, safety, environment, and trade. Staying updated and ensuring compliance can be challenging, requiring dedicated resources and expertise.

Changing consumer demands: Rapidly evolving consumer preferences and fashion trends require manufacturers to be agile and responsive. Keeping up with market demands and offering innovative, sustainable, and customized products is essential.

Sustainability and environmental concerns: Textile manufacturers are increasingly expected to adopt sustainable practices, reduce environmental impact, and ensure ethical sourcing throughout the supply chain. Meeting these expectations requires investment in technology, processes, and certifications.

Access to finance and government support: Acquiring adequate financing at competitive rates can be challenging for textile manufacturers. Government support in the form of incentives, subsidies, and favourable policies is crucial for industry growth and development.

By addressing these challenges through strategic planning, innovation, collaboration, and continuous improvement, Indian textile manufacturers can navigate the evolving landscape and seize opportunities for sustainable growth.

Is the company involved in any environment friendly practise? Cite with some examples.

It’s a known fact that the textile industry is one of the most water consuming industries, so over the years, we have worked extensively to reduce our water usage significantly. We have also adopted usage of bio- fuel and white coal to reduce our usage and dependency of coal.

Which is new the area of opportunities Mafatlal Group is focusing at present?

Apart from the various other product lines, our current focus areas are around the space of healthcare and education led technology for digital classrooms.

Innovation and product development are key for success in hosiery. How does Mafatlal Group take care of these two aspects?

Innovation and product development are at the core of our business strategy in the hosiery industry. We understand the importance of staying ahead of market trends and meeting evolving consumer demands. To ensure continuous innovation and product development, we have implemented the following strategies:

Research and development: We invest in dedicated research and development efforts to explore new materials, technologies, and designs. This allows us to create innovative and high-quality hosiery products that cater to the changing needs and preferences of our customers.

Collaboration and partnerships: We actively collaborate with industry experts, fashion designers, and suppliers to leverage their expertise and insights. By fostering partnerships, we gain access to new ideas, trends, and technologies, enabling us to develop unique and cutting-edge hosiery products.

Consumer insights: We conduct market research and engage in direct interactions with consumers to understand their preferences, lifestyles, and aspirations. This helps us identify gaps in the market and develop hosiery products that resonate with our target audience.

Continuous Improvement: We have established a culture of continuous improvement within our organization. Our teams are encouraged to think creatively, explore new possibilities, and find innovative solutions to challenges. This ensures that we are consistently enhancing our product offerings and staying ahead of the competition.

Quality assurance: We prioritise quality in all aspects of our hosiery manufacturing process. Our stringent quality control measures ensure that every product meets the highest standards of durability, comfort, and style. We constantly evaluate and refine our production techniques to deliver superior hosiery products to our customers.

At Mafatlal Group, we believe that innovation and product development are instrumental in driving our success in the hosiery industry. By embracing a culture of innovation, collaborating with industry partners, understanding consumer preferences, focusing on continuous improvement, and maintaining stringent quality standards, we strive to offer exceptional hosiery products that exceed customer expectations and position us as a leader in the market.

What are your long- and short-term growth plans?

Mafatlal Industries has predominantly always been a B2B organisation. So the focus in the near future will continue to be a consolidation in areas we enjoy a leadership position in. We are always on the lookout for areas to expand into that will be synergistic to the product lines we already have. Over the last 2 or 3 decades, we have built an asset-light model so that we are not dependent only on own manufacturing but have built partner facilities, which have allowed us to expand, and grow fairly rapidly. There is also a technology division housed under Mafatlal Industries where we are system integrators and work closely with state governments, assisting them in converting their classrooms to smart classrooms.

What is the present production capacity of the company, and how do you aim to expand it over the next five years?

Despite the challenges our industry expects to face, we are optimistic of our growth plans in the short to medium term and we will look to increase our current capacity and capabilities by 2 to 3 times in the next 5 years.

The Group is looking to build the world’s largest hybrid curated marketplace for learning services, says Priyavrata Mafatlal, Vice Chairman, Arvind Mafatlal Group

Around the world, family-owned businesses form the backbone of a country’s economy, driving growth and contributing to development. Family businesses in India have a rich history with multi-generational such businesses surviving through the ages to become an indispensable part of India’s economic landscape. 

Since independence, entrepreneurial zeal and ambition led to the emergence of many new-generation family businesses driven by the values of the promoters and owners. The turn of the century saw a meteoric rise in startups, but family businesses have continued to flourish, accounting for 79% of the national GDP annually. This is in line with global trends with over two-thirds of all worldwide businesses owned and maintained by families. 

Advantage – family business

Family businesses have proven to be resilient and even in periods of economic uncertainty, they have not only managed to survive but thrive. A study last year showed 86% of family businesses around the world optimistic about growth in 2022 even as they recover from the impact of the pandemic. A recent global study shows Indian family businesses to be more resilient than their global counterparts. 

Family businesses – which can refer to large conglomerates, mom-and-pop stores, and everything in between – are rooted in values and tradition. Values such as trust, risk-taking ability, centralized decision making and cost consciousness differentiate them from other businesses. Intuition and relationships play an essential role in the growth and expansion of family businesses.

What differentiates family businesses in India from those in the rest of the world is the place ‘family’ as an institution holds in Indian culture with family being the fundamental cornerstone of Indian society. Family businesses prioritize long-term stability over short-term gains and focus on building an organisation that will last for future generations, thus building and maintaining trust and goodwill amongst consumers. 

The spirit of Make in India 

The conversation around ‘Make in India’ may have begun gaining momentum a few years ago with the launch of the government initiative in September 2014 to increase investments, promote innovation, and transform India into a global design and manufacturing hub. However, family businesses have embodied the spirit of Make in India long before the initiative was launched. 

The history of Indian family businesses goes back to pre-Independence India. After independence, they grew despite the challenges of a controlled economy till the 1990s brought the era of liberalization. They have played a critical part in import substitution with a significant contribution to the economy. Today, with foreign direct investment (FDI), private equity and venture capital, the family businesses are holding their own and evolving dynamically in line with the rapidly growing Indian economy. 

Leading the way

Today, about 85% of all incorporated businesses in India are family businesses. They continue to have a massive impact on India’s economic growth – including contributing to the national GDP, creating jobs, and assisting in the nation-building process. Some of the largest and most profitable companies to come out of India are family-run enterprises. Some of these which have existed for over a hundred years have evolved into global business conglomerates and they have put Indian business on the world map.

Staying relevant

As resilient as they may be, family businesses are not immune to setbacks. In this age of rapid digitalization and an evolving global business scenario, family businesses must transition by reinventing themselves from promoter-driven to being professionally managed. While staying true to the core values and honouring the legacy, family businesses must adapt and evolve, staying agile and adaptable to take family businesses into the new age of Industry 4.0. 

It is only then that family businesses will continue to lead the way in supporting the Make in India movement!

Discover the original article here.

The upcoming budget is expected to give a push to the ongoing post-pandemic recovery of the Indian economy by providing the necessary support for the growth and development of various industries

The Union Budget this year is one that is eagerly awaited by industry with expectations that it will give a boost to the economy that is slowly emerging from two years under the shadow of the pandemic. For the Arvind Mafatlal Group, our focus is on three areas that we hope the budget will address – rationalizing the capital gains tax structure, addressing the inverted duty structure in the textile industry, and promoting competitiveness in the Indian chemical industry.

Capital gains tax is a critical aspect of investment, and the current dynamic matrix for computing capital gains tax is a hindrance to the growing investor base in India. The prescribed multiple holding periods, differences in tax rates, and indexation create administrative hurdles and increase overall timelines. We hope that the budget will simplify the capital gains tax regime, making it easier for investors to invest in India.

The textile industry is faced with an inverted duty structure, which has resulted in the accumulation of input tax credits. To improve liquidity for the industry, we look to the budget to allow the cash refund of such accumulated credit, which will be a shot in the arm for the industry and encourage more investment. Additionally, the effective implementation of various incentive schemes announced by the government is the need of the hour. The disbursement of sanctioned but pending subsidies and grants under the existing TUF schemes could go a long way in improving the liquidity for the industry.

Atmanirbhar Bharat, the government’s clarion call for self-reliance, has been embraced by the chemical industry, but the industry, like textiles, also faces an inverted duty structure. The upcoming budget is an excellent opportunity to correct this issue that is hindering the competitiveness of the Indian chemical industry. We hope the government takes this opportunity to promote competitiveness, encourage innovation, and provide support for the growth of the Indian chemical industry.

The upcoming budget is expected to give a push to the ongoing post-pandemic recovery of the Indian economy by providing the necessary support for the growth and development of various industries. The nation awaits the budget with bated breath, hoping for a budget that will drive the Indian economy to new heights.

The author is Vice Chairman, Arvind Mafatlal Group.

Discover the original article here.

BENGALURU, Oct 19 (Reuters) – India’s largest rubber chemicals maker Nocil Ltd (NOCI.NS) is expecting higher sales volumes in the next couple of years, as firms globally push for diversified supplies beyond top producer China that is battling supply constraints.

Part of an over 100-year old Arvind Mafatlal Group (AMG), the Mumbai-based Nocil produces antidegradants, antioxidants, accelerators that are used by the tyre industry and other rubber processing companies.

In the backdrop of firms globally pursuing the China Plus One strategy, Nocil’s talks with customers in Europe, Americas, Southeast Asia and Japan have become “deeper and more strategic,” Priyavrata Mafatlal, vice-chairman of AMG, told Reuters in an interview.

“What China Plus has done for us globally is, it has broadened the discussions with customers to increase our volume share,” Mafatlal said.

In the last two years, Nocil’s profit grew more than five-fold to 664.8 million Indian rupees ($8.07 million), driven mainly by strong demand for tyres, while China was hit by supply bottlenecks during the pandemic.

“Even pre-pandemic we were reliable suppliers in the export markets of Europe, Americas, Southeast Asia and Japan, which constitutes a major share of tyre makers in the world outside of China,” Mafatlal said.

Nocil is also eyeing strong demand from the domestic markets, where China has a strong footing, with the government encouraging its ‘Make in India’ programme that is aimed at boosting local manufacturing.

Nocil’s sales volume had grown 17% on-year in the quarter ended June. Its shares are up over 11% so far this year after gaining a staggering 62% in 2021.

Discover the original article here.

Congratulations Priyavrata Mafatlal from Mafatlal Industries Limited for winning the title of ‘Family Office Personality of the Year’ At the Family Office Awards 2022. Presented By Franklin Templeton India

Vice chairman of the 118-year-old Arvind Mafatlal Group, managing director of Mafatlal Industries Limited (one of India’s oldest textile companies) and executive director of NOCIL Limited (India’s largest manufacturer and supplier of rubber chemicals), Priyavrata Mafatlal is a fifth-generation entrepreneur with his mind set on ensuring legacy and spearheading change through alternative growth strategies.

Under Priyavrata’s leadership, the Arvind Mafatlal Group has expanded into EdTech, health and hygiene and the information technology space. Additionally, he is a successful angel investor and has added significant value to the start-up eco-system in India.

Ahead of chairing Campden Family Connect’s Indian Family Alternative Investment Forum on Tuesday, August 23, Priyavrata talks exclusively to Campden FB about diversifying into alternative investments, honouring legacy and the advice he’d give his younger self.

“We understand that alternative investment as an asset class is extremely risky, but it also offers that additional financial alpha.”

The theme of this year’s Indian Family Alternative Investment Forum is ‘Exploring new-age alternatives’, what was the thinking behind your own family office’s decision to diversify into alternative investments?
Alternative Investment as an asset class has always formed a part of our core portfolio, albeit with limited exposure. Coming from an entrepreneurial background, we believe in taking risks and venturing into challenging territories. We do understand that alternative investment as an asset class is extremely risky (as compared to other opportunities) and is relatively illiquid, but it also offers that additional financial alpha. Additionally, one of the biggest intangible advantages of participating in this asset class is that it offers some great insights from different entrepreneurs, their experiences, learnings, journey and so on.

You come from an 118-year-old multi-generational family, how important is adaptability and open-mindedness to alternative investments to your continuing success?
Without open-mindedness and adaptability, individuals or organisations struggle to grow and thrive successfully. Today since alternatives as an asset class allows us to work very closely with the founders and entrepreneurs, we end up getting a lot of exposure to new-age ideas and innovations. But the Arvind Mafatlal Group has been around for more than a century because of our need for constant innovation and us wanting to push our abilities to constantly adapt to newer businesses, techniques and opportunities. While the term ‘Alternative investments’ has picked momentum in the past 10-12 years, the group has always aggressively looked at diversification, often as first-movers, into areas which may or may not even be close to our core businesses. Invariably, as a group, we have always participated, directly or indirectly, in the alternatives asset class and we will continue to support the entire eco-system. 

“In a flowing river, there’s no such thing as floating – we either swim upstream or the current will take us downstream.”

As vice chairman of the Arvind Mafatlal Group and managing director of Mafatlal Industries Limited, one of India’s oldest textile companies, how do you balance honouring legacy with keeping an open mind on new opportunities?
In a flowing river, there’s no such thing as floating – we either swim upstream or the current will take us downstream. I look at legacy as a responsibility and opportunity to build on from, rather than sit back comfortably and get bound by older methods and ways of doing business. Taking risks by entering newer opportunities has been a strong component in the group’s DNA and philosophy which I have inherited. While the group continues to remain synonymous with textiles and rubber chemicals, in the past five years alone we have forayed into EdTech, industrial laundry and dry cleaning, health and hygiene and IT solutions to name a few. It’s also very important to surround ourselves with the right people, both internally and externally, who help in constantly spotting and identifying upcoming trends and megatrends.

What would you advise to family offices looking to get into alternative investments, such as crypto or digital assets, but don’t know where to start?
While crypto and digital assets are still at a very nascent stage, not only in India but globally, this industry is picking up quite rapidly and cannot be ignored. The environment is constantly evolving in terms of business and product fit, regulatory frameworks, stakeholders being divided upon the taxability and so on. So when we have so many moving pieces and very limited experience, it becomes really difficult for family offices to pick the right companies in this space, and, in such situations, it’s always better to participate through a fund structure rather than taking direct exposure in any company. We believe these fund managers are closely watching this space and its best to rely on their assessment until we build confidence and expertise.

You were recently awarded ‘Family Office Personality of the Year’, how does it feel being the face of not only your own family but also held up as a paragon of doing right?
It obviously feels nice when the world recognises you for your efforts, but leadership is earned, it’s not a right. We believe that we carry a lot of responsibility in every action or decision we take and, for us, ethics and governance is always at the forefront. The group’s ethos is “Ethics of excellence” and we are always mindful of the fact that we carry a rich legacy which needs to be preserved – nothing is more valuable to us than the trust of our stakeholders. So in every business dealing, we put the right heart and mind at work considering the larger responsibility that we carry and we owe this success to the blessings of our forefathers.

What advice would you give to your younger self?
Don’t take life so seriously. Work and career is important but ensure finding time for health, family and friends and oneself. Travel when you can, it builds perspective. Be bold, be brave and don’t shy away from taking decisions – trust yourself. There are no right or wrong decisions, if we choose to learn from the outcomes of that decision. Acknowledge life’s ups and downs and enjoy the ride.

For further information on Campden Family Connect’s Indian Family Alternative Investment Forum, running on Tuesday, August 23, email info@campdenfamilyconnect.com.

NFTICALLY, a global Web3 E-Commerce platform, has partnered with Mafatlal Industries Limited (part of the Arvind Mafatlal Group) a leading manufacturer and supplier of textiles, garments and uniforms, for their first virtual gallery and NFT store on the metaverse platform, COMEARTH. The design collection features six distinct NFTs for school, hospital and corporate uniforms using 3D models for an enhanced immersive experience, making Mafatlal Industries the forerunner in the textile space.

The Mafatlal NFT collection is set up on COMEARTH, an e-commerce metaverse platform powered by NFTICALLY. With this collaboration, Mafatlal Industries, a household name with over 118 years of experience and legacy in the Indian textile industry, aims to gain the first-mover advantage in its category to enter the NFT ecosystem.

NFT drops are technologically complex processes involving various challenges like Smart Contracts, Traffic Management, Security and Backend Streamlining. NFTICALLY’s global benchmarked technology ensures smoothening out of the process for collectors and creators selling their digital assets as NFTs. Presently, over 11,000 stores are powered by NFTICALLY, making it one of the largest and most preferred NFT marketplaces for creators and collectors. NFTICALLY recently launched its e-commerce metaverse platform, COMEARTH, which aims to build an ecosystem of various stakeholders to generate value through engagement or transactions.

Talking about the collaboration, Toshendra Sharma, Founder and CEO, NFTICALLY said, “NFTICALLY takes pride in itself on powering Mafatlal Industries for the NFT drop, a first for a reputed Indian textile brand. Enabling Mafatlal’s NFTs on the Web3 ecosystem will boost engagement between the brand and the young audience.”

Priyavrata Mafatlal, Vice Chairman of The Arvind Mafatlal Group said, “We are thrilled to have partnered with NFTICALLY. Having a century long legacy and experience, we believe in pushing our boundaries and being innovative and creative in every aspect of our business. With NFTICALLY’s COMEARTH, we hope to reach out to a larger set of audience.”