Bombay Dyeing bows out

One of the oldest textile companies in India, Bombay Dyeing and Manufacturing Company Ltd (BDMC), is exiting the production of textiles. This flagship company of the Wadia Group is selling its last existing textile unit in Ranjangaon near Poona "as competition from the unorganized sector and growing imports from Taiwan, China and Bangladesh have rendered its factory nonviable,” reported The Economic Times (ET) of June 8, 2015.
Established by Nowrosjee Wadia in 1879 as a small operation of Indian spun cotton yarn dip-dyed by hand, BDMC grew to be one of the most respected and trusted brands in the country and was ranked 68 in the Business India Super 100 list in 1997 and 300 in the Economic Times 500 list in 2010.

Entrance to the erstwhile Bombay Dyeing Mills

The Ranjangaon facility was set up in 2005 to cater to international and institutional sales when the company undertook a business restructuring exercise and shut down manufacturing activities in two prime Bombay locations which became part of their real estate division. The Ranjangaon facility is being sold for Rs 230 crores to Oasis Procon Private Limited.
The Business Standard of May 26, 2015 quoted that at a meeting held on May 25, 2015, the board of directors of BDMC granted its approval to the Company "to sell its textiles processing unit ... together with all specified tangible and intangible assets” and stated that the net proceeds from the sale will be utilized to repay the existing loans and reduce interest costs. On July 9, 2015 the hindubusinessline.com reported that the company has received approval from its shareholders for the proposed sale. "Interestingly, 61% of the institutional investors have voted against the proposal though majority (97%) of public investors voted in favor of the sale,” the website noted. As a term of the sale, BDMC has agreed not to directly and/or indirectly engage in the business of export of bed linen/bed linen fabric in the USA for a period of five years.
BDMC reported a profit of Rs 25 crores on sales of Rs 2,378 crores for the financial year 2014-15. The Wadia group which ventured into ship building nearly 300 years ago, manufactures biscuits and confectionery under the Britannia brand, owns and operates budget airline Go Air and has major investments in the real estate business.
ET further reports that the sale of the Ranjangaon unit "may not have any impact on the company’s existing retail business Home & You” which offers "lifestyle home furnishings” and serves consumers via a chain of over 350 exclusive stores, over 2,000 multi-brand stores all over India and also via its online store. But it may have some sentimental impact on those associated with the company. F. J.