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Bombay dyeing
- 1. BY: KRISHIKARAMASWAMY (D18012) RAMYA RAMPRAKASH(D18031) RUHIGHOSH (D18034)
- 2. Overview Financial Performance Key Questionsand Focus Area Hypothesis and Assumptions Approach Strategies Recommendation
- 3. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Performance Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 4. Overview Industry Overview ◦ Textilemanufacturing contributes 14% to industrial production and 4% to GDP. ◦ Has 2 broad categories: ◦ Organized-apply modern machinery and techniques such as economies of scale. Unorganized-operated on a small scale and Company Overview ◦ Established in 1879 in Mumbai by Nowrosjee Wadia. ◦ Current Chairman- Nusli Wadia ◦ Comes under the flagship company of Wadia group ◦ Engaged in textile manufacturing, one of the largest ◦ Unorganized-operated on a small scale and through traditional tools and methods. ◦ The Indian cotton textile industry is expected to showcase a stable growth in FY2017-18, supported by stable input prices, healthy capacity utilization and steady domestic demand. ◦ Engaged in textile manufacturing, one of the largest producers of textile ◦ Products-Bed linen, towels, furnishings, fabrics for suits, shirts, dresses and saris in cotton and polyester blends. ◦ Has approximately 50% of organized market share in bed and bath textile.
- 5. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Performance Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 6. 2823 2567 1984 2101 2744 TOTAL REVENUE 284309 231 349 633 EBITA 24 25 -85 34 2013-14 2014-15 2015-16 2016-17 2017-18 PAT Financial Performance 2013-142014-152015-162016-172017-18 2013-14 2014-15 2015-16 2016-17 2017-18 -148 43.93% 9.58% 46.49% SEGMENT WISE BREAK UP OF REVENUES, FY 2017-18 (%) Sector in Cr. BOMBAY REALTY 1183 TEXTILE/RETAIL 258 PSF 1252 • The values are from time span of 3years. • The segment wise breakup pie chart is only for year 2017-18 FY. **All the values mentioned in the bar graphs**All the values mentioned in the bar graphs are in Crores.are in Crores..
- 7. 4,05,61,900 3,63,71,500 4,45,89,400 3,16,99,500 3,30,28,100 3,41,93,100 63,68,800 Balance Sheet1,28,62,000 Financial Performance -43,63,500 16,90,400 -36,90,400 4,91,700 12,05,000 55,86,300 1,82,800 3,56,600 -4,66,9002016 2017 2018 Cash Flow Cash flow from Operating Activities Cash flow from Investing Activities63,68,800 33,43,400 0 2018 2017 2016 Total Assets Total Liabilities Total Equity Cash flow from Operating Activities Cash flow from Investing Activities Change in cash and cash equivalent -9,10,900 -12,65,200 3,51,800 2016 2017 2018 Net Income
- 8. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Performance Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 9. Key Questions ◦ IsBombay Dyeing making enough profit to sustain its roots in the future ? ◦ Is it addressing the needs of vibrant young India ? ◦ Will government policies impact the profit of ◦ Domestic Retail Market ◦ Revamping and Rebranding ◦ Expansion of the store network ◦ Product Portfolio ◦ Go Digital Focus Area ◦ Will government policies impact the profit of the organization ? ◦ Will launching of new product bring in any miracle for the dying business ? ◦ Is it rightly approaching and targeting the customers ? ◦ Go Digital ◦ Targeting the ‘Millennials’ ◦ New Technologies in production.
- 10. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Performance Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 11. Hypothesis and Assumptions ◦Bombay dyeing has huge capital (100 Cr.) from its real-estates and PSF ◦ Outsourcing of manufacturing will not affect the quality of the product ◦ Significant growth of demand in Bed and Bath sector in India, in future ◦ Eastern India has a huge potential in textile sector ◦ Raw materials are easily available to us◦ Raw materials are easily available to us ◦ With strong government policies Chinese Imports will become expensive ◦ Digital Sector in India, will have a tremendous growth in future
- 12. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Performance Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 13. Increase Profit Increase Revenue Reduced Cost IncreasingProfitability Increase in number of stores To 10,0000 mulit-Brand stores Venturing in new Markets East India Markets Rural Market Increase in number of franchise From 200 to 500 store New Products Revamping the look Collaboration with international designers Recycled Polyester New Targets Customers Indians in other countries New Technologies 3 D printing, Digital Printing Outsource Manufacturing Reduce Operational Cost Importing raw materials in long term basis
- 14. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Data Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 15. High Quality products CustomerLoyalty Brand name Pricing Power Supply chain Technology Inconsistency Low reputation in suiting and garments Weak Management. Over priced products compared to generic market. 1. Strategy Online Marketing Emerging markets-Rural Markets New Technology New products Expansion to B2B sales. Rebranding Generic, cheap Chinese imports Market trend fluctuations Branded competitors- Raymond, Welspun High land cost Availability of raw material- Cotton Climatic conditions
- 16. Political •Tax Policies •Employment law •Environmentalregulations •Trade and tariff restrictions Economic •Inflation Rates •Employment opportunities • Consumer buying power Raymond Cotton Procurement Consumers buying power 2. Strategy 3. Strategy Social •Consumer taste and preferences •Geographic location- Expansion to North East market •Online, E-commerce expansion Technolo gical •Digital Printing •Using Recycled polyester •Predictive information and analysis •Equipment monitoring and Workforce co-ordination Raymond textile, Welspun, Gwalior suiting Generic/Local Brands Non toxic, Eco-Friendly products.
- 17. Marketing PRODUCT Product: • High qualityproduct. • Iconic brand value. • In-house studios with exclusive Bombay dyeing designers. • Customer-centric. Price: • Affordable premium segment with current focus on the changing tastes of young consumers. • Dual retail pricing strategy (low end and high end of the market) Place: • Retail outlets (majority consumer reach) 4. Strategy Marketing Mix Strategy PRICE PLACE PROMOTION • Retail outlets (majority consumer reach) • Company owned stores • E-commerce websites • 5000 multi-brand outlets, 200 franchises and 600 exclusive stores Promotion: • Young consumers-'Young contemporary and ever-evolving‘ and loyal customer base. • Outdoor advertising, TV advertising, with a major focus on print ads in newspaper and magazines • Events -Gladrags, Manhunt and Mega model contest
- 18. Overview Financial Data Key Questionsand Focus Area Hypothesis and Assumptions Overview Financial Performance Key Questions and Focus AreaKey Questions and Focus Area Hypothesis and Assumptions Approach Strategies Recommendation Approach Strategies Recommendation
- 19. Recommendation ◦ Company’s e-Commercesales is 2-3%, going Digital will improve sales up to 10% ◦ Tying up with International designers will attract more customers ◦ Expansion of B2B will help in increase the sales ◦ Swipe in to rental industry ◦ More campaigning and advertisements including social media, for awareness of the products◦ More campaigning and advertisements including social media, for awareness of the products ◦ Branding of the product with celebrity for more publicity of the product ◦ Introducing affordable range of products, along with competitive benchmarking ◦ Introduction of eco-friendly and non-toxic products ◦ Its In-house design studios will gain elite customers ◦ Shift from manufacturing of suiting's to ready made garments sector.