Bombay Dyeing surges 6% on retail biz turnaround plan

NEW DELHI: Shares of Bombay Dyeing jumped over 6 per cent in Wednesday’s trade amid reports that the company was looking to turn around its textile retail business in FY18.

The retail business contributes 17 per cent to the company’s sales. The company intends to increase this share to 33 per cent by 2020.

Following the reports, the stock jumped 6.35 per cent to hit a high of Rs 51.90 on BSE.

" Manufacturing will be outsourced. From now till 2020, the Wadia group-owned company plans to invest more than Rs 100 crore in the brand, double its multibrand outlets to 10,000, more than double its franchise stores to 500 and introduce 3-4 new products every year," Nagesh Rajanna, the company CEO for its retail segment, as saying.

Rajanna expects the measures to help the segment more than treble its revenues to Rs 1,000 crore by financial year 2020 from Rs 305 crore last year.

The company recently sold MIDC land and building and some specific utility machineries of Ranjangaon unit situated at Ranjangaon, Maharashtra, for an aggregate value of Rs 174.45 crore December 31.

The company had reported a net loss of Rs 71.21 crore for the December quarter.