Bombay Dyeing targets home textile cos
Nusli Wadia’s Bombay Dyeing is hiring some 550 workers at its Pune facility, which will focus on innovative product development as the company plans to boost its presence in retail, home textile and real estate segments.
The textile major said it is open to acquisitions in the home textile segment both at home and abroad.
Its Pune plant will have an increased capacity of 50 million metres per annum and will be fully operational from November 1. The plant is spread over 150 acres and uses highly technologically advanced machinery at every stage of the production process, including Sulzer and Schlafhorst equipment.
S K Gupta, executive director, Bombay Dyeing and Manufacturing Co Ltd, told : “The new plant will focus on innovative product development to enhance our leadership position in the world market as company is investing heavily in advanced technology.” The company’s focus area would be retailing of home products like bed sheets and furnishings. “We are open to home textile brand acquisitions at local and international level to move up the value chain but the brand should bring value to the company,” Gupta added.
Bombay Dyeing, which has already pumped in Rs 250 crore for setting up the Pune unit, has also shown interest in foraying into the healthcare, education and infrastructure developing sectors in West Bengal.
It was learnt that company’s joint managing director Ness Wadia had met West Bengal chief minister Buddhadeb Bhattacharjee last month and has shown interest to start new businesses in the state. Besides, the company will open 100 “company-owned” retail stores over a period of three years with an investment of Rs 60 crore. The new flagship stores will house its entire range of textile products under one roof.
Bombay Dyeing is increasing its business in other growing export markets, including Europe, South America, Australia and New Zealand. The company’s business is evenly split between domestic sales and the export market. Around 70% of Bombay Dyeing’s exports are to the United States, where its products are sold through diverse retail channels. “The margins in the export business have effected due to sharp rupee appreciation to the entire textile and apparel industry but domestically it hardly makes any impact,” said Gupta.
The company plans mall at Ballard Estate in Mumbai while other are expected to come up in places such as Bangalore, Delhi, Hyderbad and Kolkata.
About Worli plant employees, Gupta said voluntary retirement scheme has already been offered to employees and only 67 workers are left there.
“The Worli plant will be converted into a commercial complex including shopping centres and malls,” Gupta added. It has plans for a dozen shopping centres in another decade with an investment of around Rs 200 crore each.
At present, Wadias own around 43% in their flagship venture, Bombay Dyeing, followed by institutions holding just over 30%. The public holding in the company is 20.5%, while corporate and other holdings are around own 4.2% and 2.1% respectively.
