Bombay Dyeing and Manufacturing Company Ltd today said it has started witnessing a recovery in its performance following measures like cost reduction and improvement in operational efficiency.
"We took measures to reduce cost and improve operational efficiency. We have witnessed a recovery in the last quarter of FY10 and hopefully that will persist in the quarters ahead," Bombay Dyeing's Chairman Nusli Wadia told shareholders at the company's annual general meeting here.
During Q1 FY11, the overall growth of the company was approximately 28 per cent. The losses of the textile division have come down and the losses of the polyester division have declined substantially, Wadia said.
The textile division is striving to improve the sales volume by better marketing in domestic as well as export markets. International and domestic demand has started looking up with the improved global economic environment, he said.
The company is also pursuing a strategy to increase capacity utilisation in its polyester division. It is continuing to focus on a profitable product range, reduce cost in areas of operations, including import of raw materials on long-term contract basis and expand the share in the domestic market to improve overall sales realisation.
"Today, the country is facing the basic problem of inflation, particularly with regard to food-stuffs and basic requirements of the people. The progress of the monsoon will hopefully mitigate some of this," Wadia said.
The company is progressing the next phase of real estate development with a view to leverage market trends.
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The firm now plans to build two additional towers of 60 stories each, he said, adding the company hopes to start work in 4-8-weeks.
The construction work of its commercial property in Worli and residential property at Dadar are almost complete, he said.
The company had sold its commercial property at Worli to Axis Bank as its headquarters, Wadia said.