Mandhana lines up Rs 377 cr for expansion

Mumbai: Mandhana Industries, Mumbai-based textile and apparel firm, plans to invest Rs 377 crore for expanding its garmenting, weaving and processing business. The expansion may go onstream in the beginning of FY10.

The Rs 280-crore company has already got Rs 277 crore under Technology and Upgradation Scheme from Axis Bank. The remaining money will be raised from the capital market and internal accruals. The firm has already filed its draft red herring prospectus with the Securities and Exchange Board of India. The company management said by early next year it might hit the capital market.

“Our focus area is garments making. Though we have weaving and processing units, garment division has a bright future,” said Manish Mandhana, MD, Mandhana Industries. The expansion includes setting up of three new garmenting units, two in Bangalore and one in Hubli, with a collective capacity of 36,000 pieces a day. The company has 0.3 million pieces capacity. In addition, the company will set up a new processing plant in Tarapur with a capacity of one lakh meters a day.

The company will be adding one million meters capacity at its existing weaving plant in Tarapur, taking the capacity to 2.5 million meters a month. The company will set up a design and development centre in Sewri in Mumbai.

“By April 2008, the construction work will start. We expect garmenting units will commence within six months and processing units will take a year’s time,” added Mandhana.

In financial year 2007 , Mandhana Industries posted a turnover of Rs 278 crore and its net profit was Rs 35 crore. In the first half of the current financial year, the turnover reached Rs 212 crore.