From Struggle to Strength: The Inspiring Comeback of Mufti
Mufti – A Consistent Value Creator in Indian Apparel
Credo Brands Marketing Ltd., the company behind the popular fashion brand Mufti, has demonstrated strong and consistent financial performance. In FY25, the company delivered an impressive EBITDA margin of 29%, a level it has successfully maintained over the past four years.
This operational efficiency translated into a Profit After Tax (PAT) margin of 11%, resulting in earnings per share (EPS) of ₹10.5 for its stakeholders.
This consistent performance positions Mufti as one of the most profitable casualwear brands in the country today.
Over the years, several iconic denim and casualwear brands—such as Lee, Wrangler, Newport, and FUBU—have struggled to sustain their relevance in a fast-evolving market.
While some faded, others like Spykar, Pepe, Mufti, and Killer managed to adapt and thrive.
Back in 2018, Mufti faced significant challenges, with slowing sales and a declining EBITDA margin. What was once a healthy 12% EBITDA had dropped to just 7%, prompting internal discussions around whether the brand should be sold to salvage its remaining value. There was widespread scepticism about its future.
However, Mufti made a strong comeback. According to publicly available data (from 2021 onwards), the brand turned around impressively—growing from ₹3 crore in PAT in 2021 to ₹77 crore in 2023, just before its IPO. Since then, it has consistently maintained its profitability, reinforcing its position as a resilient and high-performing player in the Indian fashion industry.
What Drove Mufti’s Turnaround?
So, what changed that enabled Mufti to become one of the best-performing fashion brands in the country?
In 2018, I joined Mufti as CEO with the mandate to lead a swift and strategic turnaround. With the trust and support of the Managing Director, Mr. Kamal Khushlani, we initiated a series of carefully planned changes over time to steer the brand back on track.
1. Re-Positioning of brand
At the time, Mufti was a 20-year-old brand with a strong following among middle-aged customers. However, younger consumers were gravitating toward international labels such as Tommy Hilfiger and US Polo Assn. It became clear that the brand’s imagery needed a refresh to stay relevant in a changing market.
To lead this transformation, we partnered with a strategic brand agency, COG – Centre of Gravity. Their role was to help us redefine Mufti’s positioning while staying true to its core values of resilience and entrepreneurship.
It was during this phase that the “Wings of Mufti” were born—a bold, modern, and proud logo that captured the spirit of the evolved brand and signaled its renewed identity to the world.
This move opened up new growth opportunities, enabling the brand to expand its reach into smaller towns and connect with a broader, younger audience across India.
Moreover, Indian consumers often associate homegrown brands with honesty and fair pricing. Mufti benefited from this positive sentiment, reinforcing its image as a brand that delivers both value and authenticity.
2. New Retail Identity
The design subtly drew inspiration from the spirit of Mumbai, the city where the brand was born, without being overt or thematic. This thoughtful integration gave rise to a new generation of Mufti stores—spaces that reflected the brand’s renewed identity and connected more deeply with modern Indian consumers.
Another key strategic shift was the move away from smaller retail spaces to larger, more prominent stores. These new locations featured impressive façades, expansive windows, and were primarily situated on high-visibility main streets—often at corner properties. This approach aligned with the broader goal of making the brand more visible, aspirational, and inviting, while still maintaining economic viability.
As a result, the average store size increased from 800 sq. ft. to between 1,500 and 2,500 sq. ft. To support this expansion, the product range was also broadened to suit the larger retail footprint. Today, Mufti operates a total of 440 stores across the country.
This transformation had a significant impact on performance. Revenue per store grew from ₹44 lakh in FY22 to ₹78 lakh in FY25, while the average ticket size rose from ₹3,000 to ₹5,300 over the same period—marking a strong leap in both scale and customer value.
3. Corrected Aesthetic and Mix
Mufti had long been known for its bold, maverick designs, which resonated strongly with business-class, middle-aged consumers. However, the challenge ahead was clear: to attract a younger demographic that was increasingly gravitating toward international brands.
Consumer research and emerging market trends highlighted a key insight—activewear and T-shirts were among the fastest-growing categories in fashion. To stay relevant and competitive, it became essential to expand Mufti’s product portfolio to include these high-demand segments.
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| Relaxed, Urban, Athleisure were added |
To further increase its share of the consumer’s wallet, Mufti began focusing on non-denim bottoms and knitwear as key additions to its product mix. These categories complemented the core offerings and catered to evolving consumer preferences.
The Indian customer, increasingly confident in homegrown brands, was ready to place trust in Mufti—a brand perceived as authentic, reliable, and fair in its pricing. This trust became a crucial advantage in strengthening brand loyalty and driving repeat purchases.
4. Technological adoption and efficiency.
AAs Mufti transitioned to becoming a more retail-centric brand, it was essential to leverage technology to gain a competitive edge. To this end, we commissioned Sellerware, a Bangalore-based company, to develop an economical and indigenous retail communication platform. I closely collaborated with their team to ensure that critical retail functions—such as inventory management—were seamlessly integrated into the custom-built app tailored specifically for Mufti.
Additionally, we partnered with Genisys to create Mufti’s first-ever customized merchandising software, designed to optimize retail allocation and inventory management.
These technology partnerships significantly enhanced retail efficiency. As sell-through rates improved, channel profitability followed suit, strengthening Mufti’s overall business performance.
5. Data and Decision making process.
For smaller, tightly run brands like Mufti, closely managing costs is not optional—it’s essential. We emphasized using data rigorously to establish clear accountability and ownership of expenses across all department heads.
A simple yet effective dashboarding was implemented to provide daily reports that supported informed decision-making. This shift enabled the organization to move from intuition-based to data-driven decisions.
This cultural transformation brought multiple benefits to Credo Brands, fostering greater professionalism and accountability. It also empowered decentralization of decision-making, allowing for faster, more agile responses across the business.
6. Profitability focused channel mix
BBrand profitability had been under pressure and needed to be restored. The most effective way to achieve this was by expanding the presence of FOFO (Fully Owned, Fully Operated) stores in Tier 2 and Tier 3 cities. Additionally, a strategic partnership with Puma to open joint stores further accelerated growth.
These smaller towns responded well to Indian brands like Mufti, which offered no-frills value and merchandise designed with Indian sensibilities in mind.
Today, nearly two-thirds of Mufti’s stores are located in Tier 2 and Tier 3 markets—an outcome of a well-planned and thoughtfully executed expansion strategy.
AA significant contribution to Mufti’s profitability also came from a large network of MBOs (Multi-Brand Outlets) in the eastern region. When managed effectively through a replenishment model—particularly in denims—MBOs can be a powerful driver of sustained profitability.
Additionally, the brand’s strong presence in Western and Central India helped Mufti achieve a rate of sale higher than Levi’s in many smaller towns. Outperforming a global leader like Levi’s at numerous MBO counters was a source of pride for the entire team and a testament to the brand’s growing strength and appeal.
7.Story telling
Whether it was the launch of Mufti’s first stretch denim line a decade ago or the more recent Airborne collection featuring Karthik Aryan, storytelling through content and retail played a crucial role in driving brand engagement. A key precondition for these initiatives was maintaining low costs. All photo and video shoots were conducted in cost-effective locations within India, allowing the brand to allocate most of its budget toward influencer marketing and generating strong PR narratives.
We also employed surrogate marketing as a strategic tactic to build consumer trust and spark interest. This approach significantly boosted the rate of sales, which in turn contributed to improved profitability.
So all this What did it do to Mufti
In FY2019, Mufti experienced a significant turnaround across multiple fronts—revamping its brand imagery and retail identity, hiring a prominent celebrity ambassador, expanding into new channels, adopting advanced technology, and fostering a culture of accountability. The company also brought in a new design team and partnered with new vendors to broaden its merchandise offerings.
From that point onward, Mufti’s growth trajectory accelerated, delivering an impressive 22% compound annual growth rate (CAGR) in the post-COVID era.
What Mufti did not do.
The philosophy at Mufti has always been clear: profitability takes precedence over mere sales growth. While its closest competitor, Spykar, may be achieving higher top-line growth, they remain far behind in terms of profitability—an area where Mufti consistently excels.
Mufti has never chased growth at the expense of profit. As a frugal and disciplined company, it carefully negotiates rental agreements and takes measured steps before making any commitments. This prudent approach has allowed the brand to avoid the pressures of rapid expansion that many corporate competitors face.
I consider myself fortunate to have been part of this remarkable turnaround journey. Looking ahead, Mufti is well-positioned to sustain its profitable growth by continuing to balance innovation with discipline, deepen its connection with emerging markets, and evolve with the aspirations of Indian consumers.
