Bombay Dyeing, a Wadia group company, has decided to shift its focus on retailing home décor items and move out of the textile manufacturing business.
The company shut its textile manufacturing plants over the last two years and began sourcing its products on franchise basis. It has partnered with 10 large manufacturing companies and a number of small manufacturing firms to meet its annual output requirements, according to media reports.
Hailed as one of the savviest businessmen in the corporate world, Mr. Nusli Wadia is the chairman and majority owner of Bombay Dyeing, took this decision.
“We don’t want to live on the past laurels any longer. We want to reach out to the youth of today. That is a big agenda. This means everything we do needs to change,” said Nagesh Rajanna, chief executive officer, Retail, Bombay Dyeing.
The company has unveiled a new look to be showcased across its consumer touch points, starting with product packaging and extending to store signage as well as its website in keeping with its aim of appealing to the millennial crowd (people who reached adulthood around 2000).
“By December the changeover will be complete across India,” said Rajanna.
“We are bringing in fresh talent as it is no longer about a manufacture capability but about in-store, retail and merchandising capabilities,” said Rajanna, adding that the company has also doubled its sales fleet in the last nine months.
To be sure, the changes have been in the making for the last 2-3 years. For the company that used to manufacture everything in-house, the first area of focus was getting its vendors and the quality control standards in place. “The work has been happening for the last 8-12 quarters. However, in the last four quarters we have moved to a completely outsourced manufacturing model,” said Rajanna.
The company has allocated more than Rs100 crore to support the revamp of the brand and communicate the changes to its consumers over the next four years. It is also figuring out the investment model for revamping its franchise stores, Rajanna said.