Bsl To Expand Marketing Network
BSL, the flagship of the $225-million LNJ-Bhilwara group, plans to expand its marketing setup beyond the network of wholesalers by putting in place a base of about 2000 retailers across the country over the next two years.
Speaking to Business Standard, Arun Churiwal, chairman and managing director, BSL, said "since we have entered an era of global market integration, the objective is to get closer to the consumer. For this we plan to extensively expand our retailing base."
However, the efforts would not go towards replacing the wholesalers with the retailers but would try to supplement the activities of the former, he added.
"This is part of the market expansion drive the company is undertaking and would enable deeper penetration in the rural and semi-urban markets," said Churiwal.
The company will be looking at a fabric mix of 70 per cent polyester and 30 per cent wool, which is priced lower, for this market segment. For the high-end market, where the company already has a strong presence, it would continue to expand the product range of
lightweight suiting fabric, launched two years ago.
In September, the company will unveil the country first line of suitings for women. The launch will take place at a suitings pageant being planned in the city.
The pageant would be on the lines of the Grasim Industries-promoted Graviera Mr India contest held every year.
Besides plans for widening consumer base and marketing setup the company has also, in the past few years, gone in for extensive expansion of its production facilities. "About 10 to 15 per cent of our gross block is dedicated every year for expanding and upgrading production facilities," Churiwal said.
The company is also kicking off a brand promotion drive through advertising campaigns and event-based activities.
The proposed pageant would be part of this drive and is planned to become an annual feature.
During the last fiscal the company clocked a profit after tax of Rs 91 lakh compared with Rs 14 lakh the year before. Total turnover stood at Rs 143.23 crore against Rs 124.50 crore.
The company is currently expanding its worsted spinning division by installing an additional 1920 spindles, raising spinning capacity to 7904 spindles.