Issues with Bombay dyeing and strategies to relaunch in market

2. Team members
• Pravin Singh
• Somesh Dhuri
• Vijay Erande
• Kedar Garud
• Amogh Kaspale

3. 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.

4. • 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.

5. • 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.

6. • 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.

7. 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.

8. • 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.

9. 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.

11. 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

12. • 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.

13. • 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.

14. • 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.

15. • 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.

16. 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.

17. • 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.

18. • 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.

19. 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.