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Textile major the Arvind Mafatlal Group (AMG) has embarked on consolidating its textile businesses into Mafatlal Industries Ltd (MIL). The scheme of amalgamation, however, was not divulged by the company.
Mafatlal Denim Ltd (MDL) and Mishapar Investments Ltd (a 100% subsidiary of Mafatlal Industries Ltd) have amalgamated with Mafatlal Industries Ltd (MIL), with effect from the appointed date of April 1, 2012, as per the Scheme of Amalgamation sanctioned by the Hon’ble High Courts of Gujarat and Bombay.
According to a senior company official, there are several benefits that would accrue by the amalgamation – operational synergies, flexibility in use of manufacturing facilities which would result in quicker “speed to market”, opportunity for expanding the denim and textile businesses, sharing of manufacturing overheads and economies of scale. Besides, a larger product mix offering to some of the most demanding customers and brands in India and abroad, marketing synergies, a wider combined distribution network in India and globally, potential for branding / retailing and, expansion of MIL’s own / franchisee retail shops pan-India.
MIL sees a great opportunity in expanding its textile business across all product categories in India and globally in the future.
MIL, the flagship company of the Arvind Mafatlal Group, has been in the business of manufacturing and marketing textiles for over 100 years (since 1905) and is one of the most respected brands in India. With composite manufacturing facilities at Nadiad and Navsari in Gujarat, MIL has a product portfolio which includes yarn dyed shirtings, suitings, voiles, prints, linens, bleached white fabric, rubia, school uniforms, corporate / institutional uniforms, bed & bath linen, ready-mades, etc.
MIL’s products are exported to more than 30 countries across the globe. The company also has a strong distribution network in India with more than 400 dealers and 35000 approved retail shops. MIL is now amongst the largest school uniform fabric suppliers in India.
MDL started off as a 50:50 joint venture between Burlington Mills Inc. of USA and AMG of India and subsequently, 100% shareholding was acquired by AMG. The company has a state-of-the-art composite denim manufacturing facility at Navsari in Gujarat. MDL is a producer of value added, differentiated and fashion denim fabrics for men’s, women’s and children’s clothing and has been supplying fabrics to upmarket brands like Wrangler, Lee, Madura brands, M&S, Killer, Mufti, etc.
