The Hindu Business Line : `Our focus is on increasing visibility of Duckback brand'

SET up in 1920, Bengal Waterproof Ltd (BWL) has the distinction of being India's first waterproof products company. Better known for its "Duckback" brand, the company is a leader in the domestic market for protective wear and rubberised consumer durables.

Besides millions of households, its customers include government institutions and defence establishments. Ironically, its strong brand equity was also the reason for the company's lacklustre marketing initiatives. Meanwhile, consumer preferences have changed. Now, the company has had to re-engineer processes and introduce new products in the market. An investment of Rs 40 crore is on the anvil on manufacturing processes and on marketing initiatives. The company now proposes to set aside a sizable chunk of the proceeds from sales for brand-building and advertising initiatives. Talking to Business Line, the Executive Director of BWL, Mr Amit Mukherji, discusses the company's future prospects and its strong brand recall. Excerpts of the interview:

Why has Bengal Waterproof, with a very strong brand in Duckback, been traditionally weak in marketing?

Ours is an 85-year-old company with a very strong brand recall. Because of the quality of the brand, demand for the company's products has always outstripped supply. This, unfortunately, resulted in armchair marketing. In the meantime, the consumer profile had changed and we were caught unawares. Then we introduced the Regal Group range which is made from poly-viscose fabric. These products were well accepted by the market. Since October 2002, our focus has been on the distribution channels and quality standards. We have re-engineered our processes to make our products saleable and, despite a 5 per cent increase in prices, our products are selling well.

What kind of innovative products have you introduced in the recent past?

In December 2003, we introduced a light and colourful jacket for the two-wheeler riding population. In April 2004, we introduced a waterproof jacket with leggings weighing 750-800 gm. In September 2004, we launched a featherweight raincoat for the two-wheeler riding population. We have also introduced the Derby Super Comfort jacket with leggings and hood. These new product offerings have helped us reposition the Duckback brand in the retail market. The gumboots, super gumboots and snow ankle boots are always there.

You had diversified into the luggage segment as well.

We have started manufacturing school bags, office bags, travel bags, carry bags, etc. We have launched these bags under three price categories, and hope to generate a revenue of Rs 5 crore a year to start with. We have also embarked upon the manufacture of inflatable, rubberised astrodomes. We are also getting into the manufacture of rollers coated with specialised rubber for use by the steel industry. Talks are under way with global majors for manufacture of rubber printer blankets that are used for offset printing.

Clearly, our focus is on increasing the visibility of the Duckback brand.

What about fresh investments in the pipeline?

We have firmed up plans to invest Rs 40 crore at our existing plant in Panihati near here and on our new set up in Mumbai. The entire amount is expected to be invested in the next two-and-a-half years. In the next 12 months, we shall increase the number of dealers to 1,200 from 800 at present.

How are you going to raise the funds?

We plan to come out with a rights-cum-public issue some time later. In fact, we are now in the process of identifying a merchant banker for the purpose.

What was your turnover in 2004-05 and how does it compare with the previous year?

In 2004-05, our turnover was around 54 crore and it was more or less the same the year before. Rainwear contributes 54 per cent of the turnover, and footwear accounts for about 25 per cent.

The balance is accounted for by rubber sheets, defence material, etc. The company's turnover is expected to go up to Rs 150-200 crore by 2007-08.

Have you embarked upon exports?

Yes. We have started exporting one container load of ice bags every alternate month to Italy and the US.

Besides, we are also exporting raincoats to the UK.

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