Bombay DyeingBSE 2.06 %, the textile flagship of the Wadia Group, has roped in PricewaterhouseCoopers, Microsoft, KPMG and EY to restructure its retail business and turn it profitable as early as next fiscal year. Also on the cards is the rollout of the brand’s own e-commerce venture by March.
While PwC and KPMG are working to define the standard operating procedures to turn the business as a pure retailer with a focus on attracting young consumers and talent, Microsoft and EY are going to put in place a new technology architecture right across manufacturing to the sales point, Nagesh Rajanna, Bombay Dyeing’s chief executive for retail operations, told ET.
“The loss-making retail business will turn cash positive this financial year. The goal is to make it profitable by 2017-18. For this, we are completely overhauling the business with help from the consultants,” he said.
In 2015-16, Bombay Dyeing reported a net loss of Rs 85 crore on sales of Rs 1,845 crore. The retail division posted sales of Rs 306 crore, while the larger contribution came from the polyester staple fibre business. Rajanna said the retail business is targeting sales of Rs 1,000 crore by 2020 so that the company’s contribution to the Wadia Group revenue increases to 30% from 17% now.
Bombay Dyeing’s e-commerce website will aim to provide a virtual experience of its products to the consumer to help drive sales. “We also have joint business plans with leading marketplaces like Amazon, Flipkart, Snapdeal, Myntra and Paytm. E-commerce sales will contribute 10% of our revenue,” Rajanna said.
Bombay Dyeing will also invest Rs 100 crore on refreshing the brand and increase its appeal among the millennial consumers. It recently unveiled a new logo.
As part of the restructuring, Bombay Dyeing has completely moved away from manufacturing and entrusted the job to 60-odd third-party manufacturers in the North and West. It is collaborating with international designers in the US, Hong Kong, and France to roll out jointly branded products and premium offerings in bath and bed linen with digital prints, priced upwards of Rs 7,000.
