Welcome to Face2Face talk, Mr Mandhana. To begin with, we would request your word on lessons acquired during the year 2010 that is to pass away shortly? What were some vital decisions taken at Mandhana during this year?
2010 year has definitely provided us with some great takeaways. First of all, we concluded our IPO with overwhelming success and the Company is now a widely held listed Company enjoying the respect and confidence of sizeable investors. Also, the Company has undertaken multiple expansion programmes at Tarapur multiplying both its garment and weaving capacity and the total capex planned is approx rupees 3 Bn. The expanded capacity shall be operational by the end of the current fiscal year. The Company is banking on the strength of its vertically integrated manufacturing capacities backed by strong designing capabilities.
In and of itself, there are many happenings in global textile sector these days. Which out of these were turning points in your view?
As has been the talk of the town since last one year, one of most influential factors concerning global textile sector is spiraling yarn & cotton prices. The same, though adding to the pressure to on the margins, has definitely helped in changing the sector’s outlook and it will not be an understatement that it has given a new lease of life to the indigenous spinning industry. Apart from this, the dilution of Chinese force in the global textile space has definitely been felt over the past year due to their environmental concerns, Yuan appreciation and also their express liking towards the modern sectors like IT.
Africa is next growth story say some analysts. Your company has market share therein. How would you comment on this prediction?
In our opinion, it shall be a little early to form an opinion on the rise of African continent as it is just beginning to find its feet. As a matter of fact, we do not have presence in a big way in African markets.
Recently, we have carried news about your Group’s plan to foray in Retail. Can you apprise us about the developments there on? How lucrative is Retail these days, especially in established country like India?
With a view to further leveraging our designing and manufacturing capabilities in garments, we have decided to venture into Apparel Retail space. We are eyeing to enter into Men's casual wear in mid-premium segment and we already working on the product line. As regards overall retail scenario, we feel that Indian organized retail definitely has steam to grow double its size from the current size in next decade. The biggest advantage that India enjoys is the proportion of youth to total population which is close to 60%. This coupled with increasing awareness and consciousness for branded apparels is definitely driving the sector northwards.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.