Mandhana plans foray into domestic spinning segment

Mandhana plans foray into domestic spinning segment

Appoints Edelweiss to conduct due diligence for acquisition

MUMBAI: Textile firm Mandhana Industries is eyeing acquisition in the domestic spinning segment for up to Rs 100 crore and has appointed Edelweiss as its merchant banker to conduct due diligence on the target companies.

“We are looking at an acquisition in the spinning segment, where we do not have a presence. We are looking at a spinning mill, preferably in Maharashtra, with a capacity of around 50,000-60,000 spindles and a turnover of around Rs 75-100 crore,” the comp any Managing Director, Mr Manish Mandhana, told PTI here.

The company, which is listed on both the BSE and NSE, has already got a few offers and is now evaluating them, he said.

Mandhana Industries, which is also planning an organic expansion involving a capex of Rs 280 crore, will fund the acquisition through internal accruals and debt.

“We don’t intend to raise any funds immediately. We will fund our inorganic growth partly through internal accruals and partly through debt,” Mr Mandhana said.

An earlier attempt to acquire a spinning mill did not fructify, he said, without, however, divulging any details.

On the company’s expansion plans, he said that it would set up two garment manufacturing facilities in Maharashtra — in Tarapur and Baramati. Both the units will have a capacity of four million pieces per annum each and will be operational by March and O ctober 2011, respectively.

Besides, the company plans to double the yarn capacity of its Tarapur weaving unit from the present 18 million metres to 36 million metres by May next, he said. — PTI