After making a mark in the spinning and weaving business, Mumbai-based Mandhana Industries is set to get back into retailing with Rs 100 crore investment plans. The company will introduce casualwear brand Canvas in the country within next two years. The brand caters to men, women and children. The company will open exclusive brand outlets at hired premises in the metros. In the second phase, it will move to cities like Bangalore, Ahmedabad and Hyderabad.
“With the retail foray, along with other expansion plans, we are planning to touch a turnover of Rs 1,000 crore by 2010,” Manish Mandhan, managing director, Mandhana Industries, told Indiaretailing.
Mandhana Industries, under the leadership of Chairman Purshottam C Mandhana and directors Biharilal C Mandhana and Manish B Mandhana, started retailing fabric 30 years ago and later diversified into spinning. Today, the Rs 300-crore vertically integrated player has made swadeshi fabric acceptable to international brands, with high-street European labels like Armani, Versace, Replay, French Connection, Marlboro Classic, D&G and Guess among its international clientele. The domestic list includes Arvind, Ashima, Raymond, Pantaloons, Siyaram and Westside.
The group ventured into fabric manufacturing in 1984 with a weaving unit and acquired a dyeing and process house at Tarapur in 1994. After achieving manufacturing capacity of up to 80,000 metres a day, the company started garment exports in 1998. Further, as part of its backward integration plan, Mandhana set up a weaving unit in 2002 with capacity to manufacture 800,000 metres of greige fabrics per month.
Another garment-manufacturing facility, set up at Bangalore in 2004, has a capacity to manufacture 120,000 garments per month. The factory at Vikhroli manufactures 50,000 high-value garments per month. The weaving unit at Tarapur manufactures yarn-dyed shirting fabric and turns out 1,200,000 metres per month. The unit also has a yarn-dyeing capacity of 150,000 kilograms per month. In addition to this, a trouser manufacturing unit in Bangalore was set up with a capacity of 100,000 units per month.
When asked if the company is looking for any acquisitions or mergers in future, Manish Mandhana said, “Though there’s nothing on the cards as of now, we keep eyeing the opportunities and would not miss out on any good one.”
Growing at a rate of 45 per cent, Mandhana Industries has doubled its turnover in last two years with 100 per cent growth in net profits.