Mandhana to spin off retail biz, seek PE funds in new firm

Mumbai-based Mandhana Industries is in talks with private equity investors to offload a 5-10 per cent in the retail business.

The company is in the process of demerging its retail business, which will be known 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.

“Mandhana Industries is already a listed company with a turnover of ₹1,400 crore. In the next few weeks we expect to demerge and list the retail operations under a separate company.

“Since are 25 per cent Ebitda positive, we will be having roadshows with PE players, and selling 5-10 equity in the demerged retail company,” said the company’s MD Manish Mandhana.

Mandhana, which has traditionally been in the business of textiles, entered the retail business after it got the licence for the Being Human brand from the 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 us in getting better valuation for the retail business and since we have to grow the business, we would seek funds from PE players. Currently the retail business is growing at 35-40 per cent,” he added.

The demerged retail company will have a turnover of ₹250 crore, which is also the current size of the four-year-old Being Human brand.

Being Human currently has 700 shops in shops and 60 exclusive stores, and has also entered the international markets. 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. “While there is infiltration of foreign brands, we have to grow and there is potential in smaller towns,” said Mandhana.

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