BOMBAY DYEINGISSUES & RE-LAUNCH

STRATEGIES

PRODUCT AND BRAND MANAGEMENT

Team members

• Pravin Singh• Somesh Dhuri• Vijay Erande• Kedar Garud• Amogh Kaspale

About Wadia Group

• The Wadia Group is one of the oldest conglomerates of corporate India.

• The group worth  100 billion (US$1.5 billion) in ₹2012, was founded by Sir Lovji Nusserwanjee Wadia in 1736.

• Lovji Wadia secured contracts with the British East India Company to build ships and docks in Bombay in 1736.

• This, and subsequent efforts, would result in Bombay becoming a strategic port for the British colonial undertakings in Asia.

• The Bombay dry-dock, the first dry-dock in Asia, was built by Lovji and his brother Sorabji in 1750.

• The Wadia group consists of following companies These include :

• Bombay Dyeing – A textiles company.

• Bombay Realty - Handles the land management and development of Wadia Group land ownings.

• Britannia Industries – A company that sells Britannia and Tiger brands of biscuit. Britannia has an estimated 38% market share.

• Go Air – A low cost airline operating from Mumbai.

• National Peroxide, hydrogen peroxide manufacturer in India.

• The Wadia Group also edits the fashion magazine Gladrags and conducts the annual Gladrags Megamodel hunt in Mumbai.

About Bombay Dyeing

• Bombay Dyeing (full name: The Bombay Dyeing & Mfg. Co. Ltd., established 1879) is the flagship company of the Wadia Group.

• Engaged mainly into the business of Textiles.

• Bombay Dyeing is one of India's largest producers of textiles.

• Its current chairman is Nusli Wadia.

• In March 2011, Jehangir 'Jeh' Wadia (36), the younger son of Nusli, has been named the managing director of Wadia Group's flagship, Bombay Dyeing & Manufacturing Company.

• while the elder son, Ness (38) has resigned from the post of joint MD of the company.

• Ratan Tata, the ex-chairman of Tata group was on the board of directors till 2013.

Products • Bed – Single Bed, Double Bed, King size Bed.

• Luxury Bed – Exclusive and designer beds designed specially by Nachiket Barve, Rohit Bal, etc.

• Kids – Single Bed, Double Bed, Bath towel, Bathrobe.

• Bath – Bath towel, hand towel, face towel, bathrobe.

• Top of bed – Bed cover, Duvet cover, Quilts, blankets, diwan sets etc.

Problems being faced by Bombay Dyeing

• Slump Sales and Cash generation was major issue.

• Competition from domestic Players like Alok Industries Ltd, Welspun Group and Trident Group.

• Growing imports from Taiwan, China and Bangladesh.

• Debts and loans

• The polyester division at Pune manufacturing plant has estimated debts of 600 - 700 Cr.

• Bombay Dyeing and Manufacturing Co. Ltd. Decided to sell its Ranjangaon unit.

• The Ranjangaon unit was built to cater to exports and institutional sales. However, this hasn't worked as per plan, as the company in a notice to shareholders admitted that the manufacturing unit is no longer viable. 

• Company was more dependent on its real estate vertical for cash generation.

• Apart from textile Bombay dyeing is into other two verticals that is Real Estate and Polyester staple fibre (PSF).

• In year 2008, In 2008, Bombay Dyeing’s real estate business contributed 30% to its total revenue; textiles brought in 20% and PSF 50%. 

• So it clear that Bombay dyeing had shifted their focus from Textile to other two verticles.

• The Ranjangaon facility was built after the Nusli Wadia-led company decided in 2005 to undertake a strategic business restructuring.

• Bombay Dyeing shut down manufacturing activities in two prime Mumbai locations.

• Those Mumbai sites are being monetised as real estate assets. 

• Bombay Dyeing has struggled with the textile business for almost two decades.

• The focus has clearly shifted to monetising real estate.

• The value of the land on which its factories stood once is much more valuable than its textile business. 

Strategies to overcome problems

• Textile business has to be the main thrust for Bombay Dyeing.

• The product pricing is on the expensive side therefore only elite and upper class consumers can only afford to buy.

• Company should get back to basics and enter into full-fledged textile cycle including fabric, weaving and spinning.

• Earlier company was into direct distribution.• They had there own exclusive showrooms.

• Company Should start widening its reach by tying up with retail chains such as Big Bazaar, Lifestyle, Shoppers Stop and D-mart.

• Bombay dyeing products should be available at maximum locations.

• The major part of Bombay dyeing product is THE PRICE. • Company should reduce down on final price so the sales

can be increased. • In the Indian market, many families come under the

middle class.

• Bombay dyeing should try to tap this market segment, earlier they were into international business and targeting elite and upper class segment.

• Sales can be increased if the products are launched at affordable rates to middle class segment.

• The reason behind more emphasis on middle class is that these are the consumers who may not purchase high price products but the no. of consumers to purchase products are high.

To Summarize the strategies

• Bombay dyeing should focus more on their Textile division as compared to other verticals.

• Bombay dyeing should go into intensive on availability of products, i.e. making products available at malls, supermarkets, etc.

• Bombay dyeing should work on their prices to be competitive.

• Bombay dyeing should focus on middle class segment and try to develop new range or collections which they can afford.

THANK YOU