Mafatlal Industries

Mafatlal Industries Limited

Type	Public BSE: 500264
Industry	Textiles
Founded	1905 in Ahmedabad as Shorrock Mill
Founder(s)	Mafatlal Gagalbhai
Headquarters	Navsari & Nadiad, India
Area served	Worldwide
Key people	Hrishikesh. A. Mafatlal (Vice Chairman & MD)
Products	Fabrics Suitings Shirtings School Uniform Corporate Uniform Rubia Formals Casuals Sarees Home Furnishing
Revenue	1,868.69 million (US$37.9 million) (Mar 10 to May 11).[1]
Net income	-223.24 million (US$-4.53 million) (Mar 10 to May 11)[1]
Employees	3,744 (2010).[2]
Parent	Arvind Mafatlal Group
Subsidiaries	Navin Flourine International Limited Mafatlal Denim Limited NOCIL Limited Mafatlal Fabrics Pvt. Ltd
Website	[1]

Mafatlal Industries Limited is one of the oldest textile companies in India. It has been in operation for 100 years.

History

Mafatlal Industries was founded by Mafatlal Gagalbhai. Mafatlal Gagalbhai was born in 1873, to a weaver of Ahmedabad. His father, who was neither educated nor prosperous, made a living by doing odd jobs. Mafatlal (in his early teens), had to leave school to help his father peddle textile products. With goods hanging from their shoulders, both father and son would scour the countryside in search of buyers. Some of the buyers provided them with capital and also gave it at low rates of interest when Mafatlal Gagalbhai was starting his business.

At the age of 31, Mafatlal Gagalbhai along with Chandulal Mahadevia (friend) and Arthur Shorrock, an Englishman who knew some British textile-machinery manufacturers in Lancashire, took over the management of a small mill in Ahmedabad. The mill was named Shorrock Mill.

Initial equity capital was 3.25 lakh (US$6,600) & Mafatlal Gagalbhai picked up 30 shares of 1,000 (US$20.28) each while his father picked up another 30 shares thus totalling to 60 shares (18.4% of the company).

Mafatlal Gagalbhai and his partners evolved an innovative scheme to muster the rest of the funds. In those days, business concerns were run by managing agencies. So, the enterprising partners promised investors a share in the managing agency.^[3]

Expansion

Second acquisition

In 1912, Mafatlal Gagalbhai bought a mill in neighbouring Nadiad for 6.26 lakh (US$12,700). The second mill was called New Shorrock.^[3]

Third acquisition

In 1916, Mafatlal Gagalbhai bought Jaffer Ali Mill, which was founded by the Nawab of Surat and renamed it as Surat Cotton Spinning & Weaving Mills.^[3]

Fourth acquisition

In 1919, Mafatlal Gagalbhai came to Mumbai and took over the China Mill, which had been set up by a Parsi family in 1887.^[3]

Consolidation

In 1970's & 1980's the existing businesses were consolidated.^[3]

Diversification

The Group also diversified into Information Technology, Chemicals & Engineering Industry, Financial Service Industry, Gas Distribution and later into Healthcare business. From 1995 onwards, the strategy has been to focus on the core competence viz. Textiles and Chemicals and divest from other businesses.^[3]

Mills & Production

Mafatlal Industries has two mills located at Navsari (near Surat) and Nadiad (near Ahmedabad). The total capacity of the two mills is 25 million meters per annum (85,000 meters per day).

Mafatlal Industries produces range of products in 100% Cotton, Polyester / Cotton, Polyester / Viscose and Polyester Wool blends, consisting of Yarn Dyed and Piece Dyed Shirtings, Poplins, Bottom wear fabrics, Cambrics, fine Lawns and Voiles. In addition to these, the mills also have the capacity to produce printed Voiles and Dress materials.

Company obtained ISO-9001 Certification in 1994.^[4]

References

1. ^ ^{a b} "BSE". http://www.bseindia.com/qresann/results.asp?scripcd=500264&scripname=MAFATLAL%20INDUSTRIES%20LTD.-%24&type=70.5&quarter=JC2010-2011&ResType=&checkcons=. 
2. ^ "Annual Report". http://www.bseindia.com/bseplus/AnnualReport/500264/5002640310.pdf. 
3. ^ ^{a b c d e f} "History". http://www.mafatlals.com/History.html. 
4. ^ "Company Profile". http://www.mafatlals.com/Company_Profile.html.