In August, the company plans to launch readymade shirts for men, which will be launched firstly with the Bombay Dyeing exclusive outlets and then with Multi Brand Outlets (MBOs) across the country
Bed and bath linen retailer, The Bombay Dyeing and Manufacturing Company, has hired a consultancy firm to chart its growth strategy and get its retail business back on track, said Aloke Banerjee, Chief Executive Officer, Bombay Dyeing.
In a freewheeling chat with Moneycontrol, Banerjee said the company is targeting Rs 500 crore revenue by FY20 in its retail business.
The retail unit's revenue had nearly halved from Rs 578.09 crore in FY15 to Rs 257.89 crore in FY18.
Bombay Dyeing, established by Nowrosjee Wadia in 1879 as a small operation of Indian spun cotton yarn dip dyed by hand, is one of the most well-known brands in the country.
In August, the company will launch readymade shirts for men which will be launched firstly with the Bombay Dyeing exclusive outlets and then with Multi Brand Outlets (MBOs) across the country. The readymade brand will be called Cezari and will be priced between Rs 499 and Rs 999.
The company is also planning to launch a unique concept called ‘make your own bed sheet’, which will be priced at Rs 1,999.
The company intends to add another 100 franchisee stores in Tier II and Tier III towns. At present, the company has 27 COCO (company owned, company operated) stores, 400 franchise stores and is available in 3,000 multi-brand retail stores and 920 modern trade doors, besides all the major e-commerce platforms.
Excerpts:
Q) Tell us about your much talked about customized bed sheets known as ‘make your own bed sheet’? What would be the price range and what a customer needs to do?
Customisation of bed sheet was an idea which came up because we wanted to target the millennial. Also, as time is progressing we are seeing that everybody is moving towards customization. People want detailing to take place as per their need and requirement. This is the first time in the world that any company is offering customization of bed sheets to the customers.
We are doing it at a very affordable price point. We would be giving one bed sheet with 2 pillow covers at Rs 1,999 only. Customers need to send in their design, we ask for certain resolutions and specifications. Then we clean the design for printing, process it and send it to the customer. So, once it is ready it will be shipped within 30 days.
Q) Are you launching any new collection?
Every season there are new collections which are introduced. This season also there will be 12 new collections of digitally printed bed sheets as well as rotary bed sheets which will be introduced.
Q) You are largely known as a home textile brand. So are you planning to venture into any other products?
We have just launched curtains and we are also getting into readymade shirts which will be retailed through our own stores and franchisee stores.
Q) When can we expect them to hit the market and what would be the pricing?
It will be launched on August 10th. Pricing would be from Rs 499-999. There are casuals, semi-formals, and formals.
Q) Any expansion plans for Bombay Dyeing stores? You are already present in Tier II-Tier III cities. Would you be looking at expansion in the hinterland? If yes, will it be a franchise model or owned?
We are planning to add another 100 franchisee stores in Tier II and Tier III towns. We have seen from e-commerce our responses have been very good from Tier II and Tier III towns. So, we are getting into the hinterland also. The expansion will be in B&C towns. The places have been identified and we are waiting for few approvals then we will be rolling them out.
Q) Where do you see yourself by 2020? Any revenue targets?
We aim to be on MRP value terms at Rs 1,000 crore by 2020. Our revenues are 40-50 percent less than that. So we will be at around 500 crores by 2020.
Q) E-commerce has become go-to-favorite for every retailer. How much does that business contribute at present and how much would you plan to take it to?
We are on 2 major e-commerce platforms. At present, it’s contributing to around 15 percent of our business. We expect it to grow further.
Q) In the bed sheet segment, we are seeing is that slew of local vendors and international brands are stepping into this market. Do you see that as a threat?
The organized segment is only 15 percent and the unorganized segment is around 80-85 percent. The field is large and open for any amount of players to come in and get into this space. There is ample opportunity around to be in this space. In the private segment, we are no 1 and we hope to maintain our leadership position
Q) Any plans of inorganic growth?
We are talking to one of the big four consultancy firms to help us in organic and inorganic growth.
Q) Are you open to inorganic growth?
Yes, we are open to organic as well as inorganic growth.