Leading manufacturer of textile and garments, Mandhana Industries announced today the demerger of its retail business into an independent entity, renamed as Mandhana Retail Ventures Ltd.
Commenting on the development, Manish Mandhana, Joint Managing Director, Mandhana Industries, said, "The demerger is a decision cohesively taken by the Board in order to align the focus of Mandhana Retail Ventures Limited to the retail business. Given the success of Being Human clothing brand, we are now looking forward to increasing the portfolio of brands and new retail concepts that the company would introduce considering the robust growth in consumerism in our country especially amongst the youth which is the key driver of our economy."
Besides, the Board is of the view that considering the overall functioning of retail industry, it is proposed to divest the retail division of MIL into MRVL for more focused and concentrated efforts in developing the brand and business reputation, as per the release.
Further,the company's retail business is significantly different from the textile stream, in terms of investments into product development, talent and sales & distribution.
As per the release, the Company will be filing the Scheme of Demerger with the stock exchanges and the High Court as per extant regulations. After demerger and subject to approval from regulatory authorities and shareholders, the retail business comprising of Being Human brand and other brands will be known as MRVL.