Turning threads

Businesses, similar people, are born. Some thrive and permission down a legacy; others emergence concisely earlier plateauing; astir stay tiny enterprises that slice with time. Few survive, pulled backmost from near-death situations to witnesser a turnaround.

This is what happened to the 120-year-old Mafatlal Industries group. Once known arsenic 1 of India’s apical textile companies, it had astir perished astir the crook of the 21st century, earlier making a comeback implicit the past 5 years oregon so. From a nett nonaccomplishment of ₹180 crore successful 2018-19 and a gross of ₹1,200 crore, the institution closed 2024-25 with a nett of astir ₹100 crore and gross of ₹2,800 crore.

Priyavrata Mafatlal, 38, a fifth-generation Mafatlal and the group’s managing manager since 2018, has led the institution down the way of profitability. “By focusing connected nonrecreational management, integer integration, and diversification towards new-age segments,” helium says. He has been capable to marque changes some astatine the mindset and profitability levels. He says the institution strategically transitioned to an asset-light model, diversifying the group’s portfolio crossed textiles, apparel, and emerging concern verticals.

Priyavrata works retired of the 4th level of the 7-storeyed Mafatlal House successful Mumbai, India’s fiscal capital, and Maharashtra’s superior city. Built successful 1955, it is located successful the Churchgate–Nariman Point area, down Mantralaya, the secretariat, and adjacent to All India Radio.

From this presumption of power, they power the Arvind Mafatlal Group, which has 4 companies, 2 of which are listed connected the banal exchange. While the conglomerate began with textiles, it has expanded into accusation technology, rubber chemicals, health, and education.

They leaned into their textile heritage, and present up to 90% of the group’s revenues travel from uniforms. “Our absorption is precise clear. We privation to absorption connected our strengths. Our strengths are giving B2B and B2G (business to government) customers what they want,” helium says. “We person an vantage due to the fact that we person already tried and tested this exemplary for years. Uniforms are 1 very, precise large happening that we tin bash successful education, hospitality, hospitals, and the defence sectors,” helium adds, his methodical, understated mode showing done his interactions with staff.

An F1 and shot fan, helium makes analogies betwixt athletics and business: “Both are astir rhythm, accuracy, and the chemistry of a squad chasing 1 goal. Both request implicit focus, coordination, and adaptability. The champion outcomes travel from teams that spot each other, run with clarity, and respond fluidly to change, whether that’s connected the way oregon successful an organisation.”

Ups and downs successful Mafatlal’s history

Priyavrata is the grandson of Arvind Mafatlal, an industrialist whose gramps started the institution successful 1905. As a tribute to him, the Government of India released a postal stamp connected his 100th commencement day connected October 27, 2023.

One day, his father, Hrishikesh Mafatlal, asked him to instrumentality implicit the business. “I was not alert the time earlier that I would instrumentality implicit this role. But I took connected the responsibility,” helium says, admitting that moving nether a begetter is not easy.

The household besides lives unneurotic successful Mafatlal Bungalow, an creation deco operation built successful the 1930s, abutting Altamount and Pedder roads successful South Mumbai. “I person a work to my forefathers and to the ecosystem. But I besides cannot conscionable support harping connected that,” helium says.

After his archetypal acquisition successful Mumbai (then Bombay), past a Harvard Business School degree, helium began his travel with the institution successful 2008 arsenic a selling executive. “Over time, I learnt the ropes of the concern crossed the group’s divers divisions. That has been a cardinal unit down the transformation,” helium says.

Trivesh D., the main operating serviceman of stockbroking steadfast Tradejini, says, “If you observe Mafatlal today, it feels astir similar a institution redefining its ain history. It was held up for years arsenic a accepted textile player, but this displacement that is taking spot present is intelligibly successful the absorption of a solutions-oriented company,” helium says.

The numbers, helium says, bash the talking: The June 2025 4th income were astatine ₹1,240 crore versus ₹450 crore successful the March quarter, and operating nett margins climbed to 4%. “This reflects amended outgo control, operating leverage, and disciplined fiscal management.”

Investors, though, look astatine companies gathering a future-ready enterprise, 1 that tin equilibrium accepted strengths with new-age opportunities. Trivesh says the azygous conception is inactive the company’s backbone, whether it’s schools, firm offices, oregon hospitality, and that provides a dependable basal of recurring demand. “They’re besides innovating, with sustainable azygous brands similar Eco Knits and Mafatlal Greens. But what stands retired is however they person layered this with integer initiatives, similar virtual azygous galleries and interactive schoolroom panels.”

He gives the illustration of however they person executed astute classrooms successful 4,000 authorities schools crossed 12 States. “Add to that their investments successful Pieflowtech, which builds retired endeavor IT (information technology) and ERP (enterprise assets planning) automation. Suddenly, you are not looking astatine a textile institution alone; you are looking astatine a subordinate with a digital-first mindset,” helium says.

From glory days to astir bankrupt

The communicative of Mafatlal Industries began successful 1886 erstwhile a young entrepreneur, Mafatlal Gagalbhai, started selling fabrics astatine section fairs. What began arsenic a humble trading task soon transformed into a well-known enterprise, venturing into modern textile manufacturing and investing successful the worth chain.

In 1905, the laminitis joined hands with Chandulal Mahadevia, a adjacent person and subordinate from Ahmedabad’s concern assemblage and Arthur Shorrock, a British textile adept from Lancashire successful England, to revive a defunct textile unit, The Shorrock Mill, marking the firm’s introduction into modern manufacturing.

Soon, the Mafatlal endeavor expanded rapidly done the aboriginal decades of the 20th century, acquiring mills successful Surat, Nadiad, and Bombay, past successful the Bombay Presidency. By the 1940s, it had go 1 of India’s foremost textile houses. Through dependable expansion, the radical became the third-largest mill proprietor successful India, accounting for astir 4% to 6% of India’s full textile output, arsenic per information from the Ministry of Textiles.

After Mafatlal Gagalbhai’s passing successful 1944, the enactment passed into the hands of his lad Navinchandra Mafatlal and grandson Arvind Mafatlal, who ushered successful a caller epoch of maturation and modernisation successful the post-war years by adopting modern manufacturing and adhering to precocious quality.

Arvind, who took implicit arsenic chairperson successful 1955 astatine 31, became a visionary who redefined the contours of Indian industry. Under his leadership, the radical diversified into chemicals, dyes, and petrochemicals, sectors that were astatine the frontier of India’s concern evolution. He had created NOCIL and Polyolefins Industries Ltd. (PIL), India’s archetypal petrochemical and plastics complexes, making the Mafatlal radical a pioneer successful the nation’s march towards self-reliance.

In 1957, the acquisition of Indian Dyestuff Industries Ltd. marked different milestone arsenic the radical consolidated its beingness crossed textiles, dyes, and chemicals. By the mid-1960s, it stood among India’s apical 3 concern houses.

From the 1960s to the 1980s, Arvind was counted among the apical 3 industrialists of India alongside J.R.D. Tata and L.M. Thapar. Both had divers concern interests, with the Tatas progressive successful alloy making, hospitality, airlines, and motors; and the Thapars progressive successful insubstantial mills, electronics, and textile mills. Today, the Thapars and Mafatlals are obscurity successful the pecking bid of large Indian concern houses, which are present led by the Ambanis, Adanis, Birlas, and Tatas.

Arvind’s lad Hrishikesh, present the chairperson, led the group, which is known arsenic the Arvind Mafatlal group. His tenure from the 90s marked the group’s adaptation to changing marketplace dynamics, planetary competition, and diversification.

“The economical liberalisation of the 90s brought caller challenges for bequest organisations similar Mafatlal Industries. There was excessively overmuch diversification and dense debt. Changing dynamics were dragging down the company,” says a erstwhile employee, asking not to beryllium named.

In the precocious 1990s and aboriginal 2000s, Mafatlal Industries faced a terrible fiscal situation owed to aggregate challenges: overleveraging that led the institution heavy into indebtedness done borrowing; manufacture cyclicality, erstwhile a assemblage dips; and bequest inefficiencies inherent to generational companies struggling with precocious operational costs. The institution was declared a sick portion successful 2000 and referred to the Board for Industrial and Financial Reconstruction (BIFR). It was 1 of the astir hard phases. Operations were constrained, assets were underutilised, and endurance itself was uncertain.

“Our superior extremity past was simple: support the marque live and honour each commitment. Even during those challenging years, my gramps and begetter were clear, “Ek rupeya kisi ka nuksaan nahi hona chahiye,” (No 1 should endure a nonaccomplishment of adjacent ₹1), says Priyavrata. “That doctrine has been our motivation anchor implicit the decades,” helium emphasises. By 2008-2009, it had travel retired of BIFR, making it 1 of the fewer textile companies successful India to bash so. “Coming retired of BIFR was not conscionable a ineligible milestone; it was besides symbolic of a deeper taste revival. We had spent astir a decennary restructuring its debt, monetising assets, and realigning the concern to a sustainable model,” Priyavrata says.

A caller direction

The company’s revival travel happened successful 3 phases: fiscal restructuring, operational transformation, and mindset change. Under the fiscal structural reboot, the institution sold non-core assets to wide each creditor dues.

Three radical entities, the erstwhile textile company, a backstage institution manufacturing denim, and a trading arm, were merged to make a stronger foundation. It exited the denim concern successful 2017.

In 2020, COVID-19 deed and fractured galore systems, including Mafatlal’s. “You’re coming adjacent to death, but you fig a mode to combat back. So, the lone happening that I pushed for was a mindset change. For the past 7 years, I person lone pushed for a mindset change,” helium says.

Some employees spoke astir however the Mafatlal radical had to accommodate to a customer-centric attack from a manufacturing mindset. It consciously moved towards an asset-light structure, moving intimately with MSMEs arsenic partners. This aligned with the government’s “Make successful India” and MSME maturation vision, portion besides enhancing outgo efficiency. Today, astir 30 factories enactment for Mafatlal, extending its capableness without over-leveraging its equilibrium sheet.

Through portfolio diversification and sectoral expansion, the institution expanded from accepted textiles into uniforms, arsenic good arsenic method textiles similar PPEs, sanitary napkins, and antimicrobial fabrics. It besides entered the user durables assemblage linked to organization proviso chains. R.A. Patel, elder vice president and portion head, Nadiad Textile Division, who has spent 47 years with the group, says that what has remained changeless is Mafatlal’s people-centric approach.

“If you instrumentality a look astatine immoderate of our units, determination are respective generations of the aforesaid household moving here, which is simply a uncommon mode of showing the enslaved this institution has with its employees.” He says galore articulation and discontinue from the organisation, and person grown with it. Mafatlal Industries contiguous is simply a B2B and B2I (business-to-institutions) powerhouse, India’s largest azygous player, and a awesome of resilience that has evolved from a bequest textile institution into a modern, technology-enabled enterprise.

lalatendu.mishra@thehindu.co.in.