Company

LOGO BOMBAY DYIENG

Presented By :
Damandeep Singh
IPER-PGDM, Bhopal M.P.
 COMPANY’S PROFILE

• Company profile :

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.