Mafatlal Industries Stages Remarkable Comeback After Crisis

Mafatlal Industries, once a leading name in India’s textile sector, has successfully navigated a significant turnaround after facing near bankruptcy around the turn of the century. With a history spanning over 120 years, the company has transformed its fortunes from a net loss of ₹180 crore in 2018-19 to a profit of nearly ₹100 crore and revenues of ₹2,800 crore in the fiscal year ending March 2025. This remarkable recovery is largely attributed to the strategic leadership of Priyavrata Mafatlal, the group’s managing director since 2018.

Under Priyavrata’s direction, Mafatlal Industries has shifted towards a more professional management structure, embraced digital integration, and diversified its portfolio into new-age business segments. “Our focus is very clear. We want to focus on our strengths,” he emphasizes, noting that the company’s revenue is now predominantly driven by uniforms, which account for up to 90% of total sales. Mafatlal’s commitment to serving business-to-business (B2B) and business-to-government (B2G) clients positions it well for sustained growth in sectors such as education, hospitality, and healthcare.

From Decline to Revival

Priyavrata, a fifth-generation leader in the Mafatlal family, operates from the historic Mafatlal House in Mumbai, a symbol of the company’s long-standing presence in the textile industry. The company has evolved significantly since its founding in 1905 by Mafatlal Gagalbhai. Following a period of distress in the late 1990s and early 2000s, the company was declared a sick unit in 2000, facing financial turmoil due to overwhelming debt and inefficiencies.

The turnaround began in earnest when Priyavrata took on leadership responsibilities, emphasizing a cultural revival alongside financial restructuring. Remarkably, Mafatlal Industries emerged from the Board for Industrial and Financial Reconstruction (BIFR) in 2008-2009, marking a significant milestone not just legally, but also symbolically for the company’s future.

“Coming out of BIFR was not just a legal milestone; it was also symbolic of a deeper cultural revival,” Priyavrata reflects. The company’s restructuring involved selling non-core assets and merging various group entities to create a stronger foundation, ultimately exiting the denim business in 2017.

Embracing Modernization

Mafatlal’s resurgence is characterized by a shift towards an asset-light model, fostering partnerships with small and medium-sized enterprises (SMEs) to enhance operational efficiency. This aligns with the Indian government’s “Make in India” initiative while allowing Mafatlal to extend its production capacity without accumulating excessive debt.

As the company diversifies beyond traditional textiles, it has ventured into technical textiles—including personal protective equipment (PPE), sanitary products, and antimicrobial fabrics. Priyavrata highlights the importance of a customer-centric approach as the company adapts from a manufacturing focus to one that prioritizes consumer needs.

The company has also embraced technological innovations, with initiatives such as smart classrooms implemented in 4,000 government schools across 12 states. Furthermore, investments in digital enterprises, including Pieflowtech for enterprise IT and ERP automation, illustrate Mafatlal’s commitment to a digital-first strategy.

Notably, the company’s uniform segment remains its backbone, providing a steady demand base across various sectors. Priyavrata’s vision resonates with industry observers, as Trivesh D., chief operating officer at Tradejini, remarks, “If you observe Mafatlal today, it feels almost like a company redefining its own history.”

While Mafatlal Industries has successfully turned its fortunes around, it continues to honour its legacy. On October 27, 2023, the Government of India issued a postal stamp commemorating Arvind Mafatlal, Priyavrata’s grandfather, recognizing his contributions to the textile industry and the nation’s economic development.

As Mafatlal Industries moves forward, it embodies resilience and innovation, transforming from a traditional textile maker into a modern, technology-enabled enterprise ready to tackle the challenges of the future. Priyavrata’s leadership encapsulates a blend of historical reverence and forward-thinking strategy, ensuring that Mafatlal remains a significant player in the evolving landscape of Indian industry.