Bombay Dyeing is getting ready to reposition its textile division as a home solutions provider by extending its portfolio beyond bed and bath products. A re-launch of the textile brand has been planned by early next year which should see it foraying into new segments to address different sets of consumers with separate sub-brands and offerings.
Jeh Wadia, Managing Director, Bombay Dyeing, told Business Line : “At the moment we are focussing on restructuring Bombay Dyeing with a new identity and product range with the purpose of becoming a home solutions provider. The ultimate goal is transforming our textile assets into retail assets with multiple brands to address different sets of consumers.”
Bombay Dyeing’s textile division has been posting losses (Rs 3.66 crore last quarter) and efforts to restructure the division are a precursor to re-launching the company by early next year.
With plans of emerging as a home solutions provider, Bombay Dyeing has decided to re-launch its textile division when it has a slew of products to cater to every consumer segment. It intends offering solutions beyond bed and bath to include products which will cater to the needs of a `complete’ home.
As Wadia says, “The company should be able to break even this year with better product differentiation and marketing.” Today it is only the real estate division of Bombay Dyeing which is recording profits (Rs 45.98 crore last quarter) while its textiles and polyester divisions continue to reel under losses.
“There has been slowdown in the textile business due to raw material prices going up and consumers reducing spends during recession,” explains Wadia.
Textiles contribute 23 per cent of Bombay’s Dyeing total revenues (Rs 2,234.49 crore).
Industry observers indicate that there is a possibility that Bombay Dyeing might look at bringing in furniture and home accessories and float a separate division to keep up with its new positioning as a home solutions provider where it could leverage synergies with its real estate division.
But for the moment Wadia is keeping his cards close to his chest. “The Bombay Dyeing brand has recall and we are trying to capitalise on it. We will develop a product range with a separate brand identity for different classes of consumers which will cater to all aspects of home and not just bed and bath. In fact there might even separate brands to address different sets of consumers across the socio economic classification,” says he.
Bombay Dyeing is also in the process of refurbishing its 300 odd franchise shops.
“Bombay Dyeing has residual brand equity and only if it has an aggressive and bold strategy can it make a comeback,” observes Arvind Singhal, Chairman, Technopak Advisors.