‘Our Focus Is On Sustainability And Smart Textiles For Our Future Growth’
Mafatlal has been leveraging Artificial Intelligence, machine learning and automation to improve planning, production efficiency and quality control, says Priyavrata Mafatlal in an exclusive tete-e-tete with Henry Dsouza, Associate Editor, Textile Insights
How does Mafatlal Industry assess market demand for textiles, both domestically and internationally, and what role do international partnerships play in your market expansion strategies?
At Mafatlal, we rely on a variety of methods to assess market demand. We closely study the economic environment, market demand trends and government policies. This includes monitoring central and state budgets, as well as any relevant notifications and regulations. We also gather consumer insights through surveys and other market research methods, as our business spans B2B, B2C and B2G segments. This multifaceted approach helps us predict business opportunities and identify potential cost adjustments.
Regarding international partnerships, currently our only active engagement is a straightforward buy-sell arrangement. However, we see significant potential for exploring partnerships outside of India. Since the post-Covid era, there’s a heightened demand for more resilient business models, robust supply chains and efficient operations globally. European companies, in particular, have shown increased interest in the Indian market, viewing it as a promising opportunity not just for textiles but also as part of the larger India growth story. We are actively evaluating potential international partnerships.
What new trends, particularly in sustainability and smart textiles, is Mafatlal focusing on for its future?
At Mafatlal, we have been focusing on sustainability and smart textiles for our future growth. A few years ago, we began by addressing environmental concerns at our manufacturing set-ups, aiming to reduce water consumption and adopt alternative energy sources. As an industry known for its high pollution levels, we understood the need for significant improvements. Now, we are moving towards incorporating sustainable practices throughout our production processes. This includes using organic cotton, recycled polyester from PET and experimenting with alternative fibres like bamboo. However, there are still challenges, particularly with scalability and durability for certain applications.
The demand for sustainable raw materials has shifted from being a market differentiator to an industry standard. Domestically, customers are increasingly expecting these eco-friendly options. We are also leading in uniforms by converting them into eco-friendly knits—using organic cotton, recycled polyester, and evaluating bamboo usage. Additionally, we are exploring innovative recycling methods to sort and recycle garments, particularly polyester and cotton, which could significantly reduce waste.
Does your product range include non-woven and healthcare textiles?
Over the past few years, Mafatlal has expanded its product range to include non-woven and healthcare textiles. Starting with hygiene products like sanitary napkins, we have become one of the leading suppliers to state governments. This growth led to the addition of diapers for retail, wholesale and online markets, alongside non-wovens like medical scrubs and uniforms.
Historically, we supplied medical uniforms, but we have significantly evolved. Today, our medical scrubs are not only functional but also feature fashionable designs, which include nice colours and comfortable fabrics. We work closely with healthcare providers, including hospitals and clinics, to ensure our products meet their comfort and durability standards. Our approach involves continuous feedback to refine our offerings, balancing functionality with comfort and aesthetic appeal. This strategy has helped us gain traction in both Indian and Middle East markets, where consumer preferences are quite similar.
After India, why is Mafatlal focusing on the Middle East market?
Mafatlal focuses on the Middle East market because of several strategic reasons. Firstly, the consumer preferences in the Middle East are quite similar to those in India, making it easier to offer products that resonate with the local demand. The cultural similarities, such as food habits and lifestyle, contribute to this alignment.
Secondly, Mafatlal has had a presence in the Middle East for over a decade through a joint venture (JV) with a local company. Although the JV didn’t last beyond three or four years, the groundwork laid during that period helped establish a foothold in the market, particularly in the uniform business. Post-Covid, Mafatlal decided to revitalize its efforts in the Middle East, leveraging the existing brand recognition and customer base. The consumer response in the Middle East mirrors that of India in terms of preferences for fabrics and garments, making it an extension of their home market.
This alignment, along with similar demographic characteristics, makes the Middle East an attractive market for Mafatlal’s growth strategy. Additionally, the company started focusing on schools and corporate uniforms in the region, which complement the cultural and economic similarities between the markets.
To what extent is Mafatlal incorporating AI, machine learning and automation into its manufacturing processes? How have these technologies optimized production efficiency, quality control and cost-effectiveness?
At Mafatlal, we’ve been leveraging Artificial Intelligence (AI), machine learning (ML), and automation to improve planning, production efficiency and quality control, though our focus has evolved over time.
Factories often face challenges such as machine breakdowns or urgent orders that disrupt workflows. Predictive analysis has helped us address these challenges by improving accuracy in forecasting demand and production requirements. By analyzing historical data and seasonality trends, we can now predict what works, when it works, and in which markets with 60–80% accuracy. This has significantly sharpened our planning capabilities, enabling us to plan production 30 days ahead and optimize resource allocation. While these processes were in place for years, they’ve now been enhanced with modern AI and ML tools integrated into our ERP systems.
In terms of quality control, we’ve adopted automation and AI tools to ensure defect-free fabric output. For instance, colour sorting has been partially automated. While machines can achieve high accuracy, the human eye is still essential for final verification in certain cases, such as matching colours under natural sunlight.
Mafatlal’s manufacturing model has evolved to a more asset-light approach, where we collaborate with partner factories. Instead of focusing solely on automating our own plants, we prioritize monitoring and maintaining quality control across multiple partner facilities. This includes deploying technologies that assist human technicians in achieving consistency and meeting expectations.
The real transformation has been on the sales side. We’ve heavily invested in making the entire dealer and customer ecosystem tech-enabled. For example, we’ve moved away from carrying physical samples to tab-based models. Sales teams can showcase hundreds of designs digitally, with only a few samples for touch-and-feel requirements. Dealers now have access to real-time stock checks, order placement systems and chatbot-based support through app-enabled platforms. The data collected through digital tools feeds into AI and ML models, improving our forecasting accuracy. This allows us to anticipate demand, plan better and coordinate with partner factories efficiently.
Looking ahead, we’re expanding these tools to retailers and direct customers, such as schools and corporate buyers. The goal is to integrate 30,000–40,000 touchpoints into a seamless, tech-driven ecosystem. The more data we collect each year, the better our predictions will become. For example, we’ll be able to identify which products drive 80% of our business during specific months, making it easier to plan production and ensure cost-effectiveness.
Which specific areas in the production chain will AI or robotics have a major impact in the next five years?
Many repetitive and mundane tasks are already being automated, though not yet at scale. For instance, simple activities like material handling, previously reliant on manual labour, are increasingly mechanized.
In production, robotics can play a significant role in areas like finishing and pre-packing stages, ensuring sharper, more efficient operations. Even seemingly minor tasks, like keeping the loom shed clean, have transitioned to mechanized processes, replacing manual efforts. Automation and AI are also transforming quality control through advanced fault detection, colour matching, and sorting technologies.
However, groundbreaking innovations in AI or robotics that haven’t been tested yet are unlikely to emerge within five years. Instead, current technologies will improve, offering better adaptability and precision. AI’s potential to impact manufacturing, quality control and sales is enormous, but we’re only scratching the surface of its capabilities.
Advancements in loom technology or automated packing in sectors like hygiene products have reduced manpower needs, but they’ve also driven higher output and efficiency. Concerns about job losses due to AI are valid, but history shows that technological advancements often shift the nature of jobs rather than eliminating them entirely. Ultimately, AI and robotics will not replace humans entirely but will complement human efforts, creating smarter workflows and more efficient systems. Change can be daunting, but it also drives progress, encouraging innovation and adaptability at all levels of the workforce.
How are data analytics and real-time monitoring technology contributing to better decision-making and operational efficiency at Mafatlal?
Data analytics and real-time monitoring have significantly enhanced decision-making and operational efficiency across multiple levels of the organization. These tools enable better planning, particularly in sales forecasting.
I can break our operations into two broad categories: tender-based and non-tender business. For tender-based operations, it’s less about forecasting and more about maintaining market awareness. On the other hand, for non-tender segments—be it B2B, B2C or B2G—the focus shifts to precise forecasting. This accuracy is critical as we scale up through our satellite manufacturing model.
Our approach is unique in that we do not consider ourselves traditional outsourcers. The factories we work with, many of which started as MSMEs, have grown alongside us, often expanding to second, third, or even fourth production lines dedicated solely to our requirements. Since they operate exclusively for us, we bear the responsibility of keeping their production lines filled efficiently.
Data analytics sharpens our supply chain by analyzing historical sales trends and identifying redundancies. For instance, if only 25 product qualities have consistently performed well over the last five years, we eliminate unnecessary production of additional qualities unless there’s a clear demand.
Real-time monitoring helps ensure seamless coordination across multiple factories nationwide. It aids in aligning production schedules, reducing stress points and improving overall supply chain efficiency. Additionally, data analytics supports workforce planning. By forecasting demand during peak seasons, factories can adjust manpower requirements, such as hiring contract labour in advance.
Finally, we use a robust feedback mechanism to continuously refine our processes. While occasional deviations from forecasts occur, we rely on analytics to track and minimize these gaps year over year, resulting in progressively better outcomes. Overall, data analytics and real-time monitoring are central to driving sharper planning, efficient supply chain management, and smoother operations at Mafatlal.
How do you ensure high quality standards across your product range and stay competitive in the evolving textile market?
Our approach to quality and competitiveness is deeply rooted in our value system and DNA, which have remained consistent over 120 years. We’ve always prided ourselves on delivering products of exceptional quality at an affordable price point.
With our asset-light model, we maintain control over the entire process, from design to delivery. This ensures that whether we’re working with partners in Bhilwara, Ichalkaranji, Ludhiana, Nadiad or Solapur, the quality remains consistent across all locations and product categories. We follow a structured approach: educating our partners on our quality standards, reinforcing our values consistently, and deploying centralized quality controls.
Take Solapur, for example. When we started working there 7–8 years ago, we began with one factory and gradually expanded. Over time, the entire town embraced the concept of quality. This shift uplifted the local ecosystem, creating a ripple effect even among those we don’t directly work with. During Covid-19 pandemic, this groundwork allowed us to quickly adapt. Within two weeks, we converted our uniform factories in Solapur into facilities producing PPE suits—a transformation made possible because of the trust we had earned from local authorities and partners.
We never compromise on quality, even if it means delaying deliveries. Of course, occasional errors can occur, but what matters is how quickly and effectively we address them. Our reputation for providing affordable, high-quality products has allowed us to enter entirely new markets—such as hygiene, healthcare, and technology—and the goodwill we’ve built over decades has been key to these successes.
To stay competitive, we combine this strong foundation with technology to streamline quality checks. It’s this blend of values, adaptability and commitment to excellence that helps us thrive in a constantly evolving market.
