Maintaining its core textile business, Mandhana’s foray into garmenting and then retail has fetched rich dividends for the company. To enhance its focus on the retail business of ‘Being Human’ and to enable the business to look at the possibility of adding newer brands, the management of the company has taken the decision to carve out Mandhana Retail Ventures as a separate company for which it would file a demerger scheme with the stock exchanges and High Court. In an exclusive interaction with Apparel Online, Manish Mandhana, Joint Managing Director, while sharing his growth plans in retail, also underlines why the area of focus in textiles continues to be in shirting and fabrics for women’s tops, across prints, yarn-dyes and structures with newer finishes.
Printed fabric is something that Mandhana Industries entered into not so long ago, but has yet managed to create an unprecedented position in the market in this category. The growth in this segment is laid on the foundation of a well researched strategy. “A general market study shows that people own 7 tops over 3 bottoms, so it’s wise to grow in that product which has larger demand prospects. Over the past seasons, we have developed many qualities in fabrics for tops that have shown exceptional demand from both domestic and international markets. Some of our modal qualities have been very popular with many reputed global brands. With our commitment to develop sustainable textiles, we have also developed a range of recycled polyesters which are proving out to be quite promising,” avers Manish.
Continuous and focused R&D is vital for Mandhana Industries as the company strongly believes that it is the key differentiator in today’s times for any business that strives to create its own identity and make a difference in the segments it operates in. “Innovation in products and processes provide adaptability and flexibility to stay ahead of competition; insufficient R&D leaves an organization susceptible to stagnation or rigidity that might be detrimental for the company’s growth and future,” reasons Manish according to whom Mandhana’s thrust on R&D is evident in the fact that all of the company’s units whether engaged in weaving, printing, processing or manufacturing come equipped with its own laboratory for exhaustive research and testing. “A set of professionals, researchers and designers are always on the lookout for new ideas, open for the improvisation of existing products and services, and eager to introduce newness in products,” he adds.
Using about 10-15% of the fabric capacities for its own captive consumption, Mandhana believes in moving forward rather than opting for backward integration. “India is a land of spinners with abundant expertise and massive spindle capacities, ranking 4th or 5th on global scale. Given the easy availability of options and the volatility of the market, we have no plans to get into spinning as it is a capital-intensive process. Our focus currently is more towards apparel manufacturing which needs lower investments, and promises better returns,” shares Manish.
Though a versatile public limited company, standing at a turnover of Rs. 1,500 crore, Mandhana Industries too is negotiating with the challenges that the textile sector is presently facing. “The biggest challenge that many textile companies like ours face today is the retention of talent. We see moderate to high attrition rates, especially at the factory-level where workers lack long-term vision. There is a need to strengthen the human resource management systems and bring in the best practices to curb this trend,” opines Manish. He also points out that cost control and efficiency are the two areas which are tricky in the textile sector and there is a need to get out of the traditional or conventional mindset and adapt systems which help to reduce wastages, increase productivity and decrease the overheads.
Growth Plans in Garmenting & Retail
Many smaller players in garmenting and retail have faced or are facing a tough phase in order to stay relevant and competitive. Taking its cue from there, Mandhana’s focus in apparel exports segment continues with renewed thrust on expansion of apparel manufacturing capacities. “The sluggish growth of the EU’s economic health has added to woes, making it a price war with a competitive manufacturing hub like Bangladesh. It’s time to become lean and efficient, fit to survive. Being a vertical setup gives us the edge over competition as we have better control over quality and price along with lead time,” observes Manish.
Retail is significantly a different ballgame compared to the conventional textile and garment manufacturing business that the organization is engaged in, and requires totally different skill sets and operational expertise. With omni-channel marketing and the need to cater to an increasingly demanding and aware consumer, retailing has become an evolving concept. “To enhance our focus on the retail business, which is currently hinged on our brand ‘Being Human’, we are looking at the possibility of adding newer brands under Mandhana Retail Ventures. The target customer group will still be youth-centric as the young Indian population offers us an immense opportunity to be serviced. Being Human has a very unique and distinct brand identity and DNA, the brand or brands we create or associate with will come with their own distinctly different flavour and USP,” concludes Manish.
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