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Thursday, June 26 1997

Kerala retailers slam doors on Bombay Dyeing

Our Bureau

Kochi, June 25: After Hindustan Lever and Smithkline Beecham, retailers in Kerala have now taken on Bombay Dyeing. About 70 Bombay Dyeing showrooms in the State have slammed their doors shut on the clothing major to press for supplies at ex-factory prices as well as compensation for loss of business during the peak school-opening season.

The Bombay Dyeing Showrooms' Association (BDSA), affiliated to the Kerala Textile and Garments Dealers' Association, has blamed Mumbai-based company for its failure to reach supplies for the crucial school-opening season.

Bombay Dyeing leads the clothing material market in Kerala with an annual turnover of about Rs 40 crore. However, with the peak season just over, the clothing giant's exclusive showrooms in the State have seen steep fall in sales. K N Marzook, general secretary of BDSA says that sales have fallen by about 45 to 50 per cent.

Matters came to a head early this year with Bombay Dyeing deciding to terminate the services of the Coimbatore-based Shivram Associates which has been Bombay Dyeing's sole distributor in Kerala, Tamil Nadu and Pondicherry for nearly three decades. BDSA sources said that Bombay Dyeing officials had promised to make arrangements for supply of materials. But the promise was not kept leading to shortage of materials during the peaks season.

Marzook told The Financial Express that they had requested Bombay Dyeing executive director Prem Malik to retain the services of Shivram Associates till the end of the school-opening season so that the supplies would not be disrupted. This was not acceptable to the company.

Discussions between the showroom owners and Prem Malik failed to yield results and from June 1 the showrooms have refused to take new stocks of Bombay Dyeing materials. The showroom owners do not want to accept intermediaries between Bombay Dyeing and them so that they will receive supplies at the ex-factory price, the sources added.

BDSA has written a letter to Nusli Wadia to draw his attention to the matter. ``We are awaiting a reply and the future course of action will be decided only after the reply comes'', he said.

Meanwhile, in a related development, BDSA sources said that none of the members of the association had taken up the dealership of Bombay Clothing, a brand being promoted by Shivram Associates after its ties with Bombay Dyeing were severed. A major campaign has been launched in the State to attract retailers to Shivram Associates' brand.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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