Mandhana Industries asks PE investors to offload 5-10% in retail biz

Mandhana has recently forayed into the retail sector after it acquired a licnece for the brand Being Human from Salman Khan Foundation.
Mandhana Industries

Mandhana Industries, a Mumbai based textile firm which recently ventured into the retail business, has sought assistance from its private equity investors. The company has asked the PE investors to put in 5-10 per cent stakes in its retail biz.

As per the recent development, Mandhana is on the verge of demerging its retail business and it will be called as Mandhana Retail Ventures.  Mandhana plans to host roadsshows to get PE investors on board to build its licensed brand of Being Human, which is pegged in the mid to premium segment in the apparels category.

Speaking on the development, Manish Mandhana, MD, Mandhana Industries said that the company is already a listed company with a turnover of  Rs 1,400 crore. In the next few weeks, it expects to demerge and list the retail operations under a separate company. Since it is 25 per cent Ebitda (Earnings before interest, tax, depreciation and amortization) positive, it will be having roadshows with PE players, and selling 5-10 equity in the demerged retail company.

Mandhana has recently forayed into the retail sector after it acquired a licnece for the brand Being Human from Salman Khan Foundation. It is now seeking to increase the valuation of its retail business post the demerger before it brings in new PE investors to give a boost to its operations.

The demerger should help the company in getting better valuation for the retail business and since it has to grow the business, the firm would seek funds from PE players. Currently, the retail business is growing at 35-40 per cent, added Mandhana.

Presently, Being Human carries its operations from 700 shops in shops and 60 exclusive stores in India, it has also launched its operations internationally, hence increasing its nexus globally. With competition increasing in the apparel industry with the entry of international brands like H&M and Zara, Being Human expects to ramp up its presence in smaller cities as well.

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