Company Name- Siyaram
Founder- Ramesh Poddar
Siyaram is an Indian blended fabric and garment-manufacturer company which has changed the taste of men’s fabric since its inception and currently is valued as a Rs 900-crore textile company based in Mumbai. With an associated chain of retail outlets and branded showrooms it has won millions of hearts.
Not only does it manufactures and sells readymade men’s apparels but also has a huge collection for women’s apparel, fabrics, home furnishing and yarns. The other name of Siyaram’s is SSM or Siyaram Silk Mills Ltd.
How it all started
Siyaram Silk Mills Ltd is a part of the Siyaram Poddar Group comprises Balkrishna Industries Ltd and Govind Rubber Ltd. It also enlisted all companies of the Bombay Stock Exchange. It is a small publicly traded company that composes outstanding shares to the market.
In 2004, after being a pure fabric manufacturer, it entered in the ready-made garment manufacturing sector with a brand such as Oxemberg and J Hampstead.
Siyaram was incorporated in 1978 and is headquartered in the Kamala Mills Compound, Mumbai. According to the Economic times, polyester viscose, derived from crude oil, forms nearly 85% of Siyaram’s material. Siyarams owned 80% of revenues from its fabric sales and 16% from garments with 4% from yarn.
After sometimes, it started developing product lines of home furnishing, uniforms, children clothing, and a women’s line. The company plans to develop an exclusive range of fabrics in long staple cotton, Giza Cotton, Linen, wool cashmere, silk, wool blends, wool silk linen and jacketing fabrics in linen.
Siyaram’s Marketing Strategy and Interesting Reasons behind Its Success
Siyaram associated with more than 1-lakh retail outlets and has over 170 branded showrooms spread across the nation. In March 2014, the company annualized net profit of Rs. 20.2 Cr. It produces over 4 million meters of fabric per month, which means it produces more than 60 million meters of fabric annually. The readymade garment contributes 16 percent in total revenues of the company from which 10 percent contribution goes in FY11.
Brand Growth Strategy
On 24th September 2015, it announced its venture with Cadini, the prominent Italian Brand and plans to manufacture an exclusive range of fabrics especially long staple cotton. The company has demonstrated a steady 10-15 percent sales growth with a consistent operating margin of 12-13 percent and return on equity is around 20 percent. The company’s revenues have grown to Rs 242 crores from Rs 89 crores by selling its readymade garments.
The brand is betting big on the growing Indian textile market as it aims to increase turnover to Rs 1,200 crores. The company has devised a three-point growth strategy, which includes capacity, networking, and an increasing number of brands, which is also looking to expand alternative categories such as home furnishing within the textile space.
It was trading 13 times more from its multiple earnings, even after its sharp run-up in the stock price. It is trading from the multiple ranges of its products. The consistent financial performance has helped the company to move up the textile value chain. The four weaving and dying plants are working for its production, first is at Tarapur in Maharashtra, two garment production facilities at Daman and one weaving unit in Silvasa.
The two factors that are boosting the revenue growth of the company are- first, the brand is catering mass market segments and the other one is profit margins. The profit margins of the company’s readymade garments are high.
Siyarams used visual depictions of the festival ‘Diwali’ and the memories and activities associated with the auspicious festival. Diwali is the festival when everyone comes home to celebrate the festival with families and the brand leveraged their enduring tagline ‘Coming Home to Siyaram’ to create a deeper bond with their audience by showing the enjoyment of this festival.
The most closely associated brand reinforced their long-standing tagline of ‘Come Home to Siyaram’ with a social media contest. It encourages the followers on social media to share their cherished Diwali memories with family and friends by using the contest hashtag, #ComeHomeTo so that they can get a chance to win exclusive gift hampers from Siyaram’s.
Users were required to follow Siyaram’s social media handles on Facebook, Twitter, Instagram, and Google Plus for eligibility, which was helped them to achieve mass followers on multiple platforms at once. It prides itself on the brand ethos of sincerity and rolled out their campaign-‘10 days of Goodwill’ in Dussehra. It generated a strong brand that helps the brand to recall their targeted audience during the festive season of Navratri and leading up to Dussehra.
The 10 Days of Goodwill challenge, urging people to participate in little acts of kindness such as giving the effort to connect with a long lost school buddy or to make an apology to someone you have hurt in a small or in a big way. The brand has created 10 different creative challenges for every day of Navratri celebrations and for Dussehra with the specific colors that are assigned for each day.
The Vice President of the brand, N Gangadhar, stated that the idea was to infuse the festival values, which combined with the brand’s character to represents morality and sincerity. The quantum of the result cannot be gauged just by them, but with the actual acts of kindness performed by the audience. This made the campaign truly a rewarding one. Audiences responded affirmatively to the interesting daily challenges and participated with their related photos. The campaigns of the brand delivered more than 32K Impressions on Twitter and also grew their organic follower in other social media.
The total reach that observed on Facebook and Twitter peaked at 145K with the 10 Days Of Goodwill Challenge that received more than 750 entries, with a per day entry average of 39. They signed Bollywood actor Ranveer Singh to endorse their menswear brand. Siyaram has also roped in high-profile brand ambassadors like Hrithik Roshan, Mahendra Singh Dhoni, Mahesh Bhupathi and Neil Nitin Mukesh to endorse its numerous and various offerings which comes under the baseline – ‘Coming Home to Siyaram’.
Siyaram’s India shares a special bond with their Indian consumers. It leveraged their enduring tagline successfully with #ComeHomeTo during the festive season, which yielded considerable brand visibility on social media. The 10 Days of Goodwill managed to successfully engage Siyaram’s social media, which led to a significant organic impact in the form of likes and increased followers for the brand.
The weaving capacity of the brand is 8 crore meters and the garment capacity is 40 lakh pieces per annum. With over 100 branded stores, Siyaram reaches out to more than 90,000 branded outlets across the country.