‘Mahi Terrycot Has Built On Strong Foundation Laid By Towel Business’

The product’s affordability, necessity and growing market demand have driven the company’s growth, positioning it as a key player in the textile industry, says Sorabh Agarwal in an exclusive interview with Henry Dsouza, Associate Editor, Textile Insights

When was Mahi Terrycot established, and how has its journey evolved in the textile sector?
Mahi Terrycot was founded in the post-COVID era, reflecting a significant evolution in its business approach within the textile sector. Initially rooted in trading, the journey began with an intent to export cotton yarn. However, recognizing the fierce competition in this segment, the focus shifted toward value-added textile products such as towels, sheeting, denim fabric and garments. This strategic pivot allowed the business to explore new opportunities and cater to a broader market.

The turning point came with the first export order for towels, a product that stood out for its consistent demand and attractive margins. Towels were identified as a daily necessity with universal appeal—affordable, essential and irreplaceable in everyday life. Encouraged by successive orders and market potential, the business thrived in the trading segment but soon recognized the need for manufacturing to scale operations and cater to larger clients and retailers.

The decision to transition into manufacturing was made in 2015-2016, with land acquisition completed by 2017-2018. While initial plans faced delays due to various challenges and the COVID-19 pandemic. Mahi Terrycot successfully commenced operations post-pandemic.

Since its establishment, Mahi Terrycot has built on the strong foundation laid by its towel business. The product’s affordability, necessity and growing market demand have driven the company’s growth, positioning it as a key player in the textile industry. The journey from trading to manufacturing reflects the company’s adaptability, forward-thinking approach and commitment to delivering quality products to a global audience.

What type of products does Mahi Terrycot specialize in, and who are its primary buyers and users?
Mahi Terrycot specializes primarily in manufacturing terry towels, focusing on piece-dyed towels rather than specialized varieties like jacquard, printed or embroidered towels. This strategic focus aligns with the market demand, as 90% of the global towel market comprises piece-dyed towels, making it a volume-driven segment.

The company caters to the masses by producing high-quality towels for personal use rather than kitchen towels. Kitchen towels are often made from recycled yarn, a niche segment dominated by markets like South India and Panipat, where cost-effective production on rapier looms is prevalent. Since recycled yarn-based kitchen towels are 30-40% cheaper, they fall outside Mahi Terrycot’s competitive scope.

The primary buyers of Mahi Terrycot’s products are importers and retailers in the United States, Canada and various European countries. The company’s focus on mainstream, high-volume markets ensure steady growth and a consistent customer base, driven by the universal appeal and everyday necessity of terry towels.

What markets or industries do your products cater to (e.g., apparel, home textiles or technical textiles)? How have demands of end-users changed over time?
Mahi Terrycot’s products cater to the home textile industry, specifically focusing on terry towels. These towels are versatile, commodity products that fulfill essential daily needs. Unlike apparel or technical textiles, terry towels are simple, practical items with minimal design changes over time. The primary variables are color, weight, softness and size, which cater to individual preferences.

The end-user demands remain consistent, as towels are not fancy or trend-driven products. Instead, they are long-lasting, with a well-made towel often continuing in use for 10-15 years. Customers primarily look for desirable hand feel, preferred colors, and specific sizes, such as bath towels, hand towels and wash towels.

Mahi Terrycot’s manufacturing process is fully integrated under one roof, covering all stages from warping and weaving to dyeing, packing and final dispatch. This streamlined production ensures consistent quality and the ability to meet diverse customer needs across various markets.

What specific challenges were you facing before collaborating with the A.T.E. Group?
Before collaborating with the A.T.E. Group, the key focus was not on resolving inefficiencies but on identifying the right technological partner to enhance production capabilities. Specifically, the need was for a reliable and advanced auto-dispensing system to support the dyeing process. Manual dispensing presented challenges in maintaining product repeatability due to the potential for human error, especially when handling multiple batches of the same color.

The auto-dispensing system was crucial for improving operational efficiency, reducing time and ensuring consistent product quality. Repeatability, a critical factor in maintaining color accuracy across batches, was significantly enhanced through automation. This made the search for a trusted solutions provider like A.T.E. a priority.

What led you to believe that the A.T.E. Group would be your ideal solutions provider?
The A.T.E. Group’s reputation as one of India’s leading textile machinery suppliers was a major factor in choosing them as a solutions provider. Their portfolio includes globally renowned brands, ensuring access to top-tier technology. Specifically, their association with Color Service, a leading name in dispensing systems, stood out during the evaluation process.

The auto-dispensing systems offered by Color Service addressed critical needs, such as enhanced product value, reduced turnaround time and exceptional repeatability. A.T.E.’s strong service support and reliability further solidified the decision. Additionally, their expertise extended to other machinery like Fongs soft flow dyeing machines, which integrated seamlessly into existing operations, further showcasing their comprehensive solutions in textile manufacturing.

How has your collaboration with the A.T.E. Group impacted your operations and marketplace presence?
Our collaboration with the A.T.E. Group has been instrumental in enhancing our operations and strengthening our position in the marketplace. There are a few key players in the market, including prominent European manufacturers, and A.T.E. serves as a trusted marketing partner for these globally recognized brands.

Through A.T.E.’s extensive portfolio, we were able to identify and integrate the right technologies, such as the Color Service auto-dispensing system and Fong’s soft flow dyeing machine. This partnership provided us with innovative solutions, ensuring operational efficiency, product consistency and repeatability—key factors for success in a competitive industry.

Their expertise and comprehensive offerings allowed us to streamline our production processes and deliver high-quality products, which, in turn, has helped us meet marketplace demands effectively. Working with A.T.E. has been a valuable collaboration in finding the right partners and solutions for our evolving needs.

What types of products are you manufacturing using Color Service machines, and how has this impacted your productivity, quality and efficiency?
We primarily use Color Service machines to manufacture terry towels, focusing on high-quality dyeing and finishing processes. These machines have significantly enhanced our production capabilities and operational efficiency.

Before implementing Color Service systems, the industry standard was achieving around 2.25 to 2.5 dye batches per day. With the advanced automation and precision offered by these systems, coupled with our team’s efforts, we now achieve up to three dye batches daily. This improvement has ensured greater consistency in output quality, drastically reducing re-dyeing and rejections.

The precision and repeatability of the machines have not only enhanced productivity but also generated significant cost savings.

While we primarily operate as a product supplier for various retailers and importers, we also market our own brand in the USA through our sister company, Mahi Exports. However, the bulk of our production is focused on delivering high-quality products for other brands.

Using Color Service machines has strengthened our ability to meet the high standards required by our clients, minimized waste and ensured that our operations remain competitive and efficient. After nearly a year of utilizing these machines, we’ve observed remarkable improvements in quality, productivity and overall operational excellence.

Looking ahead, how do you plan to expand your collaboration with A.T.E. and explore additional services from Color Service?
We view A.T.E. as a long-term partner for our future growth. We are planning to add another 20 tons at the same location, with A.T.E. playing a key role in this expansion and in future initiatives. The expansion is set to begin in April next year.

How do you view the trends in the terry towel market, especially in terms of exports to the US and Europe, and what is the current market scenario? How do you plan to manage future demand and potential market expansion in India?

The market is currently dull, mainly due to the ongoing international economic situation. However, since terry towels are a necessity, I don’t expect a major decline, but I don’t foresee a significant increase either. The demand remains stable, with consistent volumes. In India, the market is expanding rapidly, and I predict that in the next 5 to 10 years, the volume could triple. We are also working on catering to the Indian market, primarily through traders and supplying to stores like D’Mart.

We foresee increased demand, especially with the instability in neighboring countries like Bangladesh and Pakistan. We’re expanding to meet this demand, and the stability of the Indian government plays a crucial role in giving us the confidence to go ahead with this expansion. We are also looking to supply Indian buyers through traders rather than direct retail, as we find this approach more comfortable.

How would you describe Color Service technology?
Color Service is a robust solution. The technology is excellent, and we’ve had no complaints so far. While I can’t speak for all their products, the ones we use work well. If there’s ever a minor issue, their response is quick and efficient, which is a key factor for us. It’s a one-stop solution for our needs.