The UK-based group, recently roped in by Telco for a major rejig exercise, will not be involved in the operations of Bombay Dyeing on a regular basis. The company had brought in Warwick University in 1996 to assist and implement a recast programme.

"The Warwick University will no longer be associated with the company on a daily basis. However, it would help out as and when the need arises," said a top Bombay Dyeing official.

The company's relationship with Warwick also extends into the broader realm of grooming chairman Nusli Wadia's sons Ness and Jeh Wadia. Both were recently relieved of their responsiblities and are undergoing a full-time management course at Warwick University. While Ness was involved in the retail market operations, Jeh was with the export department, Bombay Dyeing sourcessaid.

Interestingly, apart from other management lessons, the young Wadias are also doing a thesis on how to improve the company's operations, they added.

The three-year-long recast operations at the textile division had made a positive impact. Though details are not available, the company made significant improvements in delivery and response timings time leading to an overall increase in exports, said sources.

Though there was talk of the restructuring being extended to the DMT division, it never came through. In fact, the company had kicked off a voluntary retirement programme here. Losses in the DMT division are reportedly eating into the bottomline of Bombay Dyeing.

Despite intensive lobbying by the company, there was no increase in import duty on DMT in the budget. However, Bombay Dyeing will marginally benefit from the imposition of 10 per cent surcharge. Major benefits will accrue from the reduction in the long term capital gains tax from 20 per cent to 10 per cent.