Mandhana Industries Ltd. (MIL) is a vertically integrated textile and garment manufacturing company in India. The company produces fabrics for the domestic market and garments largely for export. As a fully integrated global player in high-street fashion which includes textile and garment manufacturing and retailing, the company blends style and substance to enhance its visibility across geographies and gain a substantial market share.
MIL has four state-of-the-art manufacturing facilities at MIDC, Tarapur, for yarn dyeing, weaving and fabric processing and five garment manufacturing facilities in Bangalore. Construction of another garment unit at Baramati in Maharashtra, known as Hi-tech Textile Park, is nearing completion. With domestic sales offices across Delhi, Bangalore, Mumbai and Chennai, the company has always catered to global customers through tie-ups with the best-in-class companies around the world.
With its aggressive marketing strategies, a number of customer touch-points, superior quality product offerings and an expanded customer base, the company recorded a strong revenue growth of Rs. 1,363.06 crores in 2012-13 from Rs. 980.14 crores the previous year, representing an increase of 39.07 per cent. The fabric segment registered a growth of 38 per cent and the apparel segment 45 per cent. The company’s EBITDA grew from Rs. 185.55 crores in 2012 to Rs. 197.54 crores in 2013.
Approximately 95 per cent of the garments produced in MIL are exported to more than 25 countries across the globe. The textiles segment produces greige and finished fabrics such as cotton fabrics, yarn dyed fabrics and embroidered, embellished and blended cotton fabrics, including cotton blends with nylon, lycra, viscose, melange and others. The garment segment produces various readymade woven items, such as men’s shirts, women’s blouses, tops, dresses, and skirts, casual bottom wear, kidswear, sportswear, and jeans wear as well as the company’s flagship brand ‘Being Human’.
Capacity expansion
During 2012-13 MIL had three active capex plans comprising its garment expansion plans at Tarapur and Baramati and the third one for its ‘Being Human’ brand. The Tarapur expansion project has been commissioned and is commercially operational from 2012. Both the plants are equipped to produce about 2.5 million pieces of garments annually. This increases the garment making capacity to 3.6 million pieces, thereby increasing the total capacity to 7.6 million pieces. Also with the expanded capacities yarn dyeing is said to increase by three million kg, weaving by 36 million mt and fabric processing by 55 million mt annually. These expansions contribute to the increase in topline and overall productivity of the manufacturer.
For the ‘Being Human’ venture, the company has invested a total of about Rs. 35 crores, which is half of the total planned investment. The product’s commercial operations were launched in October 2012 in India. Its flagship store was launched in January 2013 at Bandra in Mumbai, followed by four more stores in the same quarter.
MIL has plans to sell ‘Being Human’ products through exclusive brand outlets (EBOs), franchisees and Store in Stores (SIS) formats, including the overseas distribution selling outlets. It has a significant presence in the Middle East and European markets having over 300 selling points and is also targeting other geographies like the Far East, the US and Africa which have a significant Indian population.
“Mandhana is the global licensee for the Being Human apparel brand, having the licence to manufacture and retail its products throughout the globe. The proceeds from the licensing will be used only for the charity for the Salman Khan Foundation. With the help of an excellent in-house design team, the company also designs and conceptualises the entire apparel range for the brand ‘Being Human’”, says Mr. Purushottam C. Mandhana, MIL Chairman and Managing Director.
On-line marketing
During the year, MIL also entered into strategic tie-ups to make its brand available online to an ever-growing list of young online buyers who are also brand conscious. It has already begun selling its clothes through Myntra.com, which enjoys extensive pan-India prominence. In India the company launched five new stores during 2012 and has plans to invest heavily to open a few more in Pune, Amritsar, Chandigarh, Raipur, Kochi, Mumbai, Thane and Bangalore to expand its reach and to promote new offerings.
The company’s tie-ups with various retail chains, such as Shoppers Stop, Lifestyle, Splash, Jade Blue, All That Jazz, My Store and Wardrobe, among others, are expected to drive its sales further. The brand is currently being sold through 40 SIS stores, and the network is expected to reach 125 stores by the end of the year. Apart from Myntra, MIL is also planning to make the apparel available to its customers through another online portal, www.beinghumanclothing.com.
Mandhana Industries, with its world class products, has diverse customers across the globe. Its domestic clientele includes Allen Solly, Louis Phillipe, Van Heusen, Pantaloons, Indian Terrain, Pepe Jeans, Wills, Lilliput, Shoppers Stop and Raymonds, to name a few. The company’s international clients for its jeans and high-street wear are J.C. Rags, Colin’s, Pepe Jeans, Scotch & Soda, FCUK , River Island, Hilfiger Denim, Denim Rifle, Bonobo, Cache Cache, Desigual, Mango, Superdry and Calvin Klein, and for sports and surf wear Quicksilver, Kappa, Rip Curl and Roxy Oxbow, Bonprix, LA-Redoute and Otto for its catalogue with New Yorker, Auchan and ORSAY being its retailers.
MIL has always attached special importance to cost-effective expansion of its business development. The design department of the company is constantly developing original designs to match the needs of customers in the wholesale and retail segment in the ever-changing fashion world. The company also continues to integrate the latest technology, innovations and improvement suitable to its manufacturing operations and adopts and upgrades its technology to sustain its presence in the domestic and international markets.