Bombay Dyeing, the textile flagship of the Wadia Group, to restructure its retail business and to make it profitable by the next fiscal year has roped in PricewaterhouseCoopers, Microsoft, KPMG and EY. They are completely overhauling the business with help from the consultants to turn the loss making retail business to cash positive.
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, said Nagesh Rajanna, Bombay Dyeing's chief executive for retail operations.
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 that 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 ecommerce website will aim to provide a virtual experience of its products to the consumer to help drive sales. They also have joint business plans with leading marketplaces like Amazon, Flipkart, Snapdeal, Myntra and Paytm. Ecommerce sales will contribute 10% of their revenue.
It has roped in young talent with FMCG and telecom background, including from organisations like WalMart and Airtel, to drive the change. The company plans to also double the sales and marketing force of 1,000 people in four years.
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.
The offline retail expansion will be franchise-led for exclusive outlets and sale through distributors for reaching out to multi-brand stores. It will not add company-owned stores that currently total 30, but plans to more than double the franchisee-run outlets to 500 from 200 in the next four years.
Bombay Dyeing will also invest Rs. 100 crore on refreshing the brand and increase its appeal among the millennial consumers. Recently they have unveiled a new logo.
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