Mandhana Ind cuts FY12 sales guidance to Rs 1,000-1,025 cr

Textile company Mandhana Industries has lowered its revenue guidance for the current fiscal year to Rs 1,000-1,025 crore from Rs 1,050-1,100 crore it had earlier expected due to delay in its planned expansion.

For instance, Mandhana Industries' garment manufacturing unit at Baramati in Maharashtra is delayed by four-six months. This unit was to be operational by March, but will now be ready by August, Mitesh Shah, Mandhana's VP – Finance and Corporate Affairs told moneycontrol.com on Tuesday.

Shah said the company had delayed factory construction amid a weak global environment.

However, he says the company now has "sufficient" orders and is seeing 20% growth in the domestic as well as export markets. Mandhana Industries currently has an order book of Rs 200 crore in its fabric business and Rs 50 crore in garment manufacturing.

Once complete, the Baramati plant will have a capacity to manufacture 36 lakh pieces per year.

Apart from the plant expansion, Mandhana Industries' plans to launch exclusive retail stores for actor Salman Khan's 'Being Human' apparel range are also running behind schedule.

Shah said the company wanted to launch the entire range, including men's and women's wear together and that delayed the launch. Delay in securing right real estate also led to the plans getting pushed back.

In an earlier interaction, Shah had told moneycontrol.com that the first 'Being Human' store would open in December 2011, in Mumbai's suburb of Bandra. Now the first store is only opening by April-end or early-May in a mall in suburban Ghatkopar in Mumbai.

Mandhana Industries will have 10 own flagship stores of 'Being Human' by March-end 2013, Shah said. Most of the expansion post that will be done via the franchisee route, he said.

Meanwhile, the company has started distribution of 'Being Human' clothing line in West Asia, Shah said. In January, Mandhana had signed a deal with Dubai-based Landmark Group to sell the clothing line in countries like UAE, Egypt, Bahrain, Saudi Arabia, Oman, Kuwait and Qatar. 'Being Human' will be sold in Landmark group owned stores in these countries from April.

Apart from West Asia, Mandhana Industries has also appointed distributor in France, Shah said and it is scouting for more partners in other countries where Salman Khan is known and loved.

Mandhana Industries raised around Rs 108 crore via an IPO in May 2010. The stock closed up 0.5% at Rs 254.80 on NSE on Tuesday.

Nachiket Kelkar
nachiket.kelkar@moneycontrol.com