Bombay Dyieng

Company

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BOMBAY DYIENG

Presented By : Damandeep Singh IPER-PGDM, Bhopal M.P.

COMPANY’S PROFILE • Company profile

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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. Its current chairman is Nusli Wadia . The Group's principal activities are milling, processing and spinning of yarn and weaving of grey cloth. It operates in three segments, namely, Textile, Polyester and Real estate. The Group operates through its only one wholly owned subsidiary namely White Horse Real Estate Private Ltd. It's products include bed linen, towels, furnishings, fabrics for suits, shirts, dresses and saris in cotton and polyester blends. The Group's plants are located at Maharashtra.

SIZE OF THE MARKET • THE company’s business is evenly split between domestic sales, including more than 600 of its own retail stores, and the export market. • Approximately 70 percent of Bombay Dyeing’s exports are to the United States, where the company’s products are sold through diverse retail channels, including upscale specialty stores and designer shops, department stores, national chains and mass merchants. • Bombay Dyeing, the bed and bath textiles major with close to 50% of organized market share, is planning to add 10 exclusive outlets within a year, reports the Hindu Business Line. According to Mr. Arun Bhawsingka, Head of Domestic Business, Bombay Dyeing, the organized market size is Rs 300 crore, while the unorganized sector accounts for Rs 6,500 crore.” • Additionally, Bombay Dyeing is increasing its business in other fast-growing export markets, including Europe, South America, Australia and New Zealand. 

COMPANY’S DEPENDENCE • TECHNOLOGICAL DEPENDENCE: In the initial phases, textile mills were located in and around the rivers since they were powered by water wheels then steam engine was invented & now shuttles are used. So a textile company depends on the changing technology. • BUYING POWER OF CUSTOMERS The textile industry is also dependent on buying powers of customer. If the buying powers of customers are high than it will lead to a positive impact on the position of the company.

• INDIRECT TAX CUT The textiles industry expects that the Government's interim budget is likely to contain some tax breaks for industry and sector-specific measures to stimulate a slowing economy. • ENVIRONMENTAL FACTORS : Raw cotton is the major raw material for most of fabric manufacturer. It accounts for around 60-65% of the cost of production and has significant impact on operational performance of Bombay dyeing. Cotton as an agriculture commodity is exposed to many factors like crop area, monsoon, type of fertilizer, pest control, etc. Hence impact on these factors will affect the price of cotton.

• Cost Structure : Labor and power are two key cost elements in the textile unit :  Labor  Power  OTHER FACTORES : • Geographical diversification • Modernization

FUTURE PLANS • BRAND BUILDING : Having made a turnaround in its domestic textiles business, Bombay Dyeing and Manufacturing Company has decided to increase its emphasis on brand building rather than rely on promotions to boost its image. • DUAL RETAIL STRATEGY : Bombay Dyeing is planning to have a dual retail strategy to cater to the low and high end of the market. • TO TAP THE RURAL MARKET: Bombay Dyeing has set its sights on the rural home textile market, following the expansion of its premium range.   The company is promoting its sub brand Blooms in the rural and semi rural regions to tap the lower segment

ENVIRONMENTAL FACTORS AFFECTING BOMBAY DYEING

 NATURAL BARRIERS: • Climatic conditions • Availability of raw materials.  TECHNOLOGICAL  SOCIO CULTURAL • Price factors • Performance factors • Aesthetic factors • Cultural factors • Religious factors

CURRENT STATUS OF THE COMPANY

  • Bombay dyeing is currently running in losses but it expected to rise up 2.35% (earning the profits and setting-off the losses). • The reasons behind the losses posted by the company in past, was due to the restrictive quotas and several costs incurred by the company." With the dismantling of quotas post 2005, Bombay Dyeing is hoping to regain its looses in export turnover as well. Now, exports account for almost 50 per cent of Bombay Drying's turnover.

Problems faced by the company • BD has shifted two of its textile mills out of Mumbai to Ranjangaon and Patalganga as part of its restructuring exercise, consolidate its manufacturing facilities and prune operational costs. Post shifting of these textile mills,BD proposes to exploit the land thus available at prime locations in Mumbai. • Company running in loss.