Company

LOGO BOMBAY DYIENG

Presented By :
Damandeep Singh
IPER-PGDM, Bhopal M.P.
 COMPANYS 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 companys 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 Dyeings exports are to the United States, where
the companys 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.
 COMPANYS 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.