Bombay Dyeing Plans Turnaround

10/18/2016
BombayDyeingplansturnaroundLivemint
Sections
BOMBAY DYEING
DURGESH MEHTA
DEBASHIS PODDAR
TEXTILE
REAL ESTATE
Bombay Dyeing plans turnaround

Bombay Dyeing plans turnaround
P.R. Sanjai & Baiju Kalesh
First Published: Mon, Jun 20 2011. 10 07 PM IST
Share
Tweet
Updated: Mon, Jun 20 2011. 10 07 PM IST

Mumbai: Bombay Dyeing and Manufacturing Co. Ltd, which has lost one third of its
stock value this year, is scripting a three-pronged turnaround strategyto reduce
dependence on its real estate vertical for cash, tap the mass market for textiles, and
reduce its debt by half in two-three years.
The biggest issue for the group since 2008 was generating cash. This was partially set
off by revenues earned from the real estate division, Durgesh Mehta, joint managing
director and chief nancial ofcer at Bombay Dyeing, said in a recent interview.
After addressing that, the immediate focus was to stop losing money in other verticals
such as textiles and polyester staple bre (PSF) manufacturing facility, he said.
Bombay Dyeing returned to a prot of Rs18.42 crore in 2009-10 after posting a loss of
Rs194.62 crore in the previous scal year, hit by the global nancial slowdown. In scal
2011, its prot improved slightly to Rs21.39 crore.
In 2008, Bombay Dyeings real estate business contributed 30% to its total revenue;
textiles brought in 20% and PSF, 50%. Mehta wants textiles to account for 30% of the
companys total revenue in the next two years, and to reduce real estates contribution
to 20%.
Textile business is going to be the main thrust, said Mehta, who joined the company in
2008. Earlier, Bombay Dyeing was perceived as top-end of the market, which has only
5% under organized home textile market. Now, we have decided that we have to be in
the other side of spectrum to tap unorganized side of market. We are broadening our
range to low-price segment.
Experts are wary of the plan.
http://www.livemint.com/Companies/pbAGdAxb1G9pVctF5jhFaN/BombayDyeingplansturnaround.html
1/13
10/18/2016
Sridhar Ramachandran, director at distress debt resolution advisory rm Brescon

Corporate Advisors, said Bombay Dyeing, established in 1879 by the Wadia family, has
failed to capitalize on its legacy in the textile industry.
As long as Bombay Dyeing is restricting itself with retail and outsourcing key
functions, it is tough for the company to achieve materialistic changes, said
Ramachandran, who has spent 21 years handling general, nance and turnaround
management in textile
across Asia and Africa.
Automatic
Buyindustries
Sell Chart
Buy Sell Signal Technical Live Shares, Commodity Live Technical Go to easylivetrade.com
The company has to get back to basics and should enter into full-edged textile cycle
including fabric, weaving and spinning. More importantly, it should also get into
technical textile vertical, he said.
Arvind Singhal, chairman at retail consultancy Technopak Advisors Pvt. Ltd, said
increasing focus on the textile business will be an uphill task for Bombay Dyeing
because of competition, though there is ample opportunities in the Indian textile
sector. Singhal said companies such as Alok Industries Ltd, Welspun Group and Trident
Group have done well in the bed and bath linen segment, where Bombay Dyeing is
strong.
These companies have developed strong market with a good portfolio of export and
domestic products... Bombay Dyeing has to catch up with these strong competitors as
the company was more focused in to other business verticals such as real estate till
now, Singhal said.
The company is undeterred.
Debashis Poddar, chief executive of Bombay Dyeings textile division, said his company
has started widening its reach by tying up with retail chains such as Big Bazaar,
Lifestyle, Shoppers Stop and D-mart.
Bombay Dyeing products are now available in at least 2,000 outlets and are aimed at all
sections of customers, with prices ranging between Rs300 and Rs10,000, he said.
Mehta said Bombay Dyeing is adopting the strategy of consumer goods companies.
We will take cues from Britannia that tapped the mass market by introducing Parle and
Tiger brand biscuits. We have inducted Vinita Bali of Britannia into our board to get
consumer insight, said Mehta, who was formerly with the countrys largest consumer
2/13
10/18/2016
goods company by sales, Hindustan Unilever Ltd. All this will be done without diluting
our brand.
Britannia Industries Ltd, also a Wadia group company, sells biscuits and dairy products
across consumer sections. Bali heads the company as its managing director.
As for borrowings, Bombay Dyeing wants to lower its debt to about Rs600 crore in twothree years. Its debt increased to Rs1,800 crore in March 2010 from about Rs1,600 crore
Automatic
Buy Sell Chart
two years earlier. But the debt was brought down to Rs1,200 crore (in March 2011) partly
because (of) the revenue from PSF business and remaining from real estate revenues.
Servicing debt will not be a major issue considering the cash ow is improving, Mehta
said. With the market prices of bre improving, we are fetching good prices for PSF
business, that is running in 100% capacity.
On Sunday, PTI reported that the Competition Commission of India has admitted a
complaint that charges Bombay Dyeing and other large polyester makers with allegedly
abusing their dominant market positions to dictate prices and sale terms to smaller
companies.
Bombay Dyeing shares shed 6.42% on the Bombay Stock Exchange, ending trading at
Rs347.85 on Monday. The benchmark Sensex index fell 2.04% to 17,506.63.
pr.sanjai@livemint.com
First Published: Mon, Jun 20 2011. 10 07 PM IST
Share
Tweet
LATEST NEWS
3/13
10/18/2016
Automatic Buy Sell Chart

Facebook joins Reliane Jio, Amazon in weighing IPL digital rights bid
Inclusive rural transformation is essential to eliminate poverty: report
4/13
10/18/2016

Epidemics among most pressing health security issues today: K. Vijay Raghavan
FROM THE WEB
5/13
10/18/2016

Don't Invest in the Mutual Funds Until You've Seen This!

Arthayantra
Rae Bareli: This Online Trick Turns Regular People into Millionaires
CareerTimes
6/13
10/18/2016

You Want Lighter Skin? See These Stunning Transformation (Watch Video)
Fit Mom Daily
20 Pictures That Hillary Clinton Wishes Would Go Away

Detonate.com
7/13
10/18/2016

25 Photos Trump Didn't Want You To See

Detonate.com
How Does This Rae Bareli Student Makes Up to Rs 15000 Per Day?
Online Prot Academy
8/13
10/18/2016

Don't Invest in the Mutual Funds Until You've Seen This!

Arthayantra
Rae Bareli: This Online Trick Turns Regular People into Millionaires
CareerTimes
9/13
10/18/2016

You Want Lighter Skin? See These Stunning Transformation (Watch Video)
Fit Mom Daily
20 Pictures That Hillary Clinton Wishes Would Go Away

Detonate.com
10/13
10/18/2016

25 Photos Trump Didn't Want You To See

Detonate.com
How Does This Rae Bareli Student Makes Up to Rs 15000 Per Day?
Online Prot Academy
EDITOR'S PICKS
11/13
10/18/2016

Apple scales back self-driving cars project
Standard Chartereds India problem is (half) solved by Essar deal
12/13
10/18/2016

Govt wants IITs, IIMs to go multidisciplinary for world-class institutions tag
HOME | COMPANIES | OPINION | INDUSTRY | POLITICS | CONSUMER | LOUNGE |

MULTIMEDIA | MONEY | SITEMAP
Subscribe | ContactUs | MintCode | Privacypolicy | TermsofUse | Advertising | MintApps |

AboutUs | Syndication | MintonSunday | RSS | HindustanTimes | Desimartini
Copyright 2016 HT Media Ltd. All Rights Reserved
13/13

Bombay Dyeing Plans Turnaround - Livemint

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Bombay Dyeing Plans Turnaround - Livemint

Загружено:

Авторское право:

Доступные форматы

10/18/2016

Updated: Mon, Jun 20 2011. 10 07 PM IST

Sridhar Ramachandran, director at distress debt resolution advisory rm Brescon

Automatic Buy Sell Chart

Inclusive rural transformation is essential to eliminate poverty: report

Automatic Buy Sell Chart

Automatic Buy Sell Chart

Don't Invest in the Mutual Funds Until You've Seen This!

Automatic Buy Sell Chart

20 Pictures That Hillary Clinton Wishes Would Go Away

Automatic Buy Sell Chart

25 Photos Trump Didn't Want You To See

Automatic Buy Sell Chart

Don't Invest in the Mutual Funds Until You've Seen This!

Automatic Buy Sell Chart

20 Pictures That Hillary Clinton Wishes Would Go Away

Automatic Buy Sell Chart

25 Photos Trump Didn't Want You To See

Automatic Buy Sell Chart

Apple scales back self-driving cars project

Standard Chartereds India problem is (half) solved by Essar deal

Automatic Buy Sell Chart

Govt wants IITs, IIMs to go multidisciplinary for world-class institutions tag

HOME | COMPANIES | OPINION | INDUSTRY | POLITICS | CONSUMER | LOUNGE |

Subscribe | ContactUs | MintCode | Privacypolicy | TermsofUse | Advertising | MintApps |

Вам также может понравиться