Interview with Mr H A Mafatlal

Mr H A Mafatlal
Mr H A Mafatlal
Vice-Chairman & Chief Executive
Arvind Mafatlal Group of Companies (AMG)
Arvind Mafatlal Group of Companies (AMG)

Movements in textile industry also mark the re-introduction of TUFs with outlay of Rs 74billion. What does this mean to textile industry, and to Mafatlal Group as it strategizes a come back in industry in a big way?

The re-introduction of TUFS by the Govt. is indeed a welcome step for the Textile Industry in India , as the scheme encourages upgradation of technology , equipment and processes for becoming competitive and produce quality products . The AMG will definitely use the TUFS for new investments as well as for upgrading its equipment.

Since some past years, your group is observed taking big interest in Denim fabrics. How do you see the segment faring in the country? As your Group is gearing up on this segment too, is it likely to add Jeans segment in product portfolio?

The Indian denim industry started only in 1986 in India and has since been growing steadily at the rate of 10-12 % every year. Currently the total capacity for denim fabric is around 650 Million meters per year, of which about 400 Million meters is used for domestic consumption ( fabrics and garment exports ) and the balance exported.

We expect the denim market to continue to grow at 10% compounded every year till 2020 , by which time , the capacity would be well over 1.2 Billion meters per year.

Mafatlal Denim Ltd. ( which was earlier a JV called Mafatlal Burlington Industries Ltd ) had increased its capacity from 10 MMA to 20 MMA in 2008 and is currently supplying denim fabrics to all the large brands in India , like Levis , Mufti , Spykar , Madura etc. Besides, it also exports over 30% of its capacity to its global customers .

We are carefully evaluating the options available for the denim garmenting business and will finalize our strategy shortly.

Mafatlal Group is king of Uniform-wear segment. What are prospects of Uniform-wear industry? Where do you see the growth most- in Corporate sector or Education sector? Can you support your views with a brief market dynamics-

Uniform-wear segment can be divided into 4 major market categories, viz.

1. School and College Uniforms of Rs.10,000 crores 2. Corporate Uniforms of Rs. 2,000 crores 3. Defence, Postal and Military purchases of Rs.500 crores 4.Statement Government requirements like Police, Transport, Municipal Corporations, Public Works Department, Electricity Boards, Forest Department, Water Supply Departments etc., worth Rs. 200 crores.

These segments consist of various product mixes and are governed by specific technical requirements. Most of the Corporate Uniform and marginal share of School Uniform segments have brand requirements. The balance market is highly competitive in terms of prices and services. The unorganized market has a great presence due to their focus on this specific business and price competitiveness.

Among the organized branded players, Arvind Mafatlal Group has a major presence in all the segments across the country. AMG have around Rs. 150 crores business in uniform supplies and it is expected to grow at 20% per annum. The growth in school uniform business is more than the corporate sector. Uniforms have become mandatory till 12th standard and student enrolments are growing across the country. We need to do more and more branding exercises at user end to achieve desired growth. Dealers and converters involvement in the business of School Uniform and Corporate Uniforms are very high. Hence strengthening this network is mandatory.

Many large business houses in the industry are seriously looking at technical textiles as next lucrative business. Any plans on card in the group’s corporate diary too.

I agree that there is great potential in India for Technical Textiles and we are looking at possibilities in all the sectors for a suitable opportunity and we are also open for an International collaboration in this area.

Please describe Mafatlal Group’s walk on sustainability course-

The Arvind Mafatlal Group is a responsible Textile producer and we are of the view that consumers will buy products in the future, which are Ecologically friendly. We are Oko Tex certified and are constantly working towards reducing our carbon and water footprints.


Published on: 25/04/2011

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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