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Asia's Most Popular Collection of Management Case Studies |
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Siyaram Finance, its subsidiary, was into the financial services business. Siyaram manufactured and marketed textiles, cotton, woollen synthetics and synthetic blends – the main product being polyester blended worsted2 fabrics. In July 1993, Siyaram came out with a Rs 153 million rights issue to part-finance a Rs 165 million expansion-cum-modernization project. While the family held 23% of the Rs 51 million equity, foreign collaborators, FIs and the public held 26%, 22% and 8% respectively. Siyaram had a strong presence in the lower and medium segment of the domestic suitings market.
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The company had three manufacturing plants situated at Thane and Raigad in Maharashtra and Silvassa in the union territory of Dadra & Nagar Haveli, producing over 27.5 million meters of fabrics annually. Siyaram had a 4% market share in the Rs 50 billion suitings and shirtings market. |
Siyaram's sales increased from Rs 20 million in 1978 to Rs 3252.6 million in 2000-01. Table I provides a summary of the company's financial performance. Siyaram was one of the few non-FMCG companies in India that was known for its lavish advertisements. The 'Coming Home To Siyaram' campaign was reported to be one of Indian advertising's costliest campaigns.
The 'Coming Home To Siyaram' advertisements were much talked about for being of much longer duration than the usual advertisements3, and also for the huge budgets Siyaram set aside for them. The company believed that good commercials helped it to effectively position its suitings on a global platform. Siyaram officials said the company's focus on marketing was responsible to a great extent for its growth over the years. Percept had conceptualized the 'Coming Home to Siyaram' campaign in the early 1990s.
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2] A fabric made by the blend of wool and synthetic fibers.
3] The duration of the Siyaram advertisements was usually well above the norm of 30 seconds. For instance, in July
2001, Siyaram released a 2-minute commercial for its suitings, shot at a cost of Rs 220 million - it was reportedly the
largest budget ever set for a commercial by any Indian company.
Case Code : MKTG018
Themes: Advertising and Promotion
Case Length : 7 Pages
Period : 1995-2001
Organization : Siyaram Silk Mills Ltd
Pub Date : 2001
Teaching Note : Available
Countries : India
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