Mafatlal posts record profits in School Uniform business Fabric and Readymade Uniform Industry at an All-Time High

Mafatlal posts record profits in School Uniform business Fabric and Readymade Uniform Industry at an All-Time High

New Delhi, July 16, 2009. After registering huge profits in the school uniform segment, Mafatlal Industries Ltd, a flagship of Arvind Mafatlal Group has decided to increase the production of both school and corporate uniform. Mr. M.B Raghunath, Vice President Mafatlal Fabrics mentioned, “Mafatlal Fabrics have sold more than 50 lakh meters of fabrics for production of school uniforms this season as compared to 40 lakh meters last year and the company is still receiving orders at the end of the season,” He added that the company plans to manufacture 60 to 65 lakh meters next year.

The school uniform market has grown to Rs.10, 000 crores in spite of 27% fall in the export area. The domestic market has shown an unprecedented growth of 40% during this financial year. The usual annual growth so far has averaged at around only 15%.

With recessionary trends in both the global and domestic markets most manufacturers believed that there would be a slowdown and planned production conservatively, expecting low volumes. Even tailors and converters delayed the production process.  Steep hike in yarn prices and weaving charges also proved to be a hindrance to the unorganized sector manufacturers like Bhiwandi and Bhilwara who could not produce enough fabric to cater to market needs thus creating a shortage of uniform fabric demands were at an all time high.

Mafatlal Fabrics had planned production well in advance and sold more than 50 lakhs meters of uniform fabric. The introduction of fiber dyed qualities in suiting and a whole new range of designs in shirting also helped the company register record profits.

Mafatlal has introduced a new strategic sales plan, promoting their products directly at school level along with local retailers and tailors/converters. They are appointing school uniform dealers all over the country and organizing presentations and seminar for School authorities.

“We are making use of unique 3 D Computer presentations with more than 100 patterns and designs, more than 5000 designs in shirting and more than 200 designs and shades in suiting to reach out to customers. The focus will be on the importance of quality parameters that need to be met during production of school uniforms” said Mr. Raghunath

Raghunath said corporate uniform is a Rs 2,000 crore market. Most of the corporate and large public undertakings are changing their uniform purchase patterns from the traditional way of fabric purchase to readymade uniforms.

“The armed forced, many state governments, central government buyers and public sectors are demanding fabric and readymade uniforms from reputed manufacturers & well known brands. They have incorporated pre-qualification criteria like ‘Composite Mill Certificate of having spinning, weaving & processing capability’, ISO Certification, Test Report from Textile Committee, minimum required turnover along with past performance details etc to avoid low quality suppliers. Textile mills like Mafatlal Industries & Raymonds are the biggest institutional suppliers in the segment and thus best suited to meet their demands,” he said.

The group also plans to enter the corporate gift business and offer products to FMCG and pharma companies.

Mafatlal Group has an annual turn over of Rs 500 crores. The groups’ earning from school uniform business alone stands at 35 crores while earning from corporate uniform is100 crores.

For further information please contact:

Ruhi Sharma

DIPAYAN MAZUMDAR and ASSOCIATES

011 26270629/41604340

 

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