Bombay Dyeing to tap rural market

Bombay Dyeing has set its sights on the rural home textile market, following the expansion of its premium range.

The company is promoting its sub brand Blooms in the rural and semi rural regions to tap the lower segment.

S K Gupta, executive director, Bombay Dyeing, said, "The company plans to straddle all price points and Blooms will enable us to address the entry-level customers. It has received a good response during test marketing and will target the mandi towns for distribution."

The company expects to leverage Bombay Dyeing's brand equity to draw customers shifting towards branded home textiles. Blooms will offer bed and bath solutions at lower price points, with a thrust on multi-brand outlets.

Gupta said,"Blooms is estimated to be worth Rs 100 crore in a year as it will fetch volumes and faster growth."

In the second phase, Bombay Dyeing is planning to tap upcoming organised rural marts to beef up its distribution network. Targeting the rural and semi rural areas would pose a challenge, according to a textile consultant.

"Considering the consumption pattern, textile firms can address only close to 300 cities," he added.

Bombay Dyeing has lined up investments of Rs 60 crore over three years to open 100 company owned showrooms and is refurbishing the existing retail network of 450 outlets as a part of the brand building process. It has tied up with Rivoli, one of UAE's leading luxury retail chains, to enter the West Asian market.

The firm's textile division aims to clock a turnover of Rs 375 crore in this financial year. It reported a net loss of Rs 37 crore for the third quarter ended December 7 compared to a net profit of Rs 7 crore a year ago.

Analysts expect the firm's operating margins to expand and the textile business to record a strong turnaround after the restructuring phase.