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"For 2025, the signs are promising," asserts Vinod Kumar Gupta, Managing Director of Dollar Industries Ltd (DIL), as he sat down for an exclusive chat with e4m at the company headquarters in Kolkata. "It should be a better year in comparison to 2024 in terms of business, because we have had a good winter this time. All our stocks have been liquidated - at all three points - at the manufacturer levels, distributors line-up and retailers. This creates a healthy cash flow, setting a positive tone for the year ahead," began Gupta, his enthusiasm palpable.
Gupta’s optimism is also based on the extended wedding season, which kicks off mid-January and extends until June. "With over 15 auspicious days each month, this year’s wedding season is huge. This means a good growth for the hosiery industry and Dollar," he noted.
Gupta, a St. Xavier's College, Kolkata alumnus, also highlighted how rural weddings uniquely drive hosiery demand. "In rural weddings, it's customary for baraatis to wear brand new sets of undergarments, which boosts our business significantly. It's a fascinating and lesser-known aspect of our industry."
Shareing his perspective on numerology's influence on the business, Gupta said: "The year 2025 sums to 9, an auspicious number linked to growth, health, and prosperity." While he personally doesn’t subscribe to numerology, Gupta, who is a member of the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI), acknowledged its widespread appeal among business leaders.
Challenges Then and Now
Founded as Bhawani Textiles in 1972-73 by Shri Dindayal Gupta, the company rebranded to Dollar Industries in 2008 and has since diversified its offerings to include hosiery, readymade garments, and lifestyle apparel for men and women. The company has also expanded globally, with exports constituting 9% of production and a presence in markets like the UAE, Oman, Qatar, and Bahrain.
Reflecting on the company’s evolution since 1972, Gupta observes: "Back then, building a brand and capturing the market amidst established players was the primary challenge," he recalls. "Today, the focus has shifted to sustaining growth and achieving an 8-10% annual volume growth."
Gupta's current marketing philosophy underscores the importance of ubiquity. "Our goal is to be a part of every citizen’s life," he says, adding, “To achieve this, Dollar Industries has adopted a dual strategy: enhancing its presence in retail outlets and increasing product variety through its "Lakshya” project.”
Under Lakshya, DIL is increasing retailers' points. “We are also increasing in terms of placement of more ranges into the retailers' shop. That is the main motive of that project.”
Moreover, the company has embraced a direct-to-consumer approach with 25 exclusive brand outlets (EBOs). "Running EBOs in the undergarment business is challenging due to margins and turnover, but they allow consumers to access our full range," Gupta explains.
Asked about potential business acquisitions, Gupta shared, “Earlier, we were quite aggressive in pursuing acquisitions. However, our past experiences taught us that such ventures didn’t yield the desired outcomes. It’s better to focus on strengthening our core operations.”
A major milestone for the company was the 2017-18 joint venture with Netherlands-based Pepe Jeans, launching premium innerwear and loungewear under the "Pepe Jeans London" brand. In 2022, Dollar opened its first Exclusive Brand Outlet (EBO) in Ayodhya, signalling its retail ambitions.
Marketing Strategy & AI
DIL’s marketing spend remains robust at Rs 100 crore annually, with a focus on TV, digital platforms, and retail branding. “In absolute terms, our total marketing spend will be around Rs 100 crore this year as well. About 50 per cent of this budget is allocated to TV, as it remains the dominant mass media platform in India,” noted Gupta.
“However, we've also realised the critical importance of point-of-purchase (POP) presence. During our brand overhaul in 2020, we undertook significant activities to strengthen our retail branding. Now, we are revisiting that strategy, focusing on ensuring that customers can clearly see and access our products at the point of sale.”
Beyond TV and POP, we are increasingly shifting our focus to digital platforms. With the growing popularity of e-commerce and the majority of consumers, especially younger audiences, spending their time online, it’s essential for us to engage them on digital screens. This allows us to remain in their consideration set and adapt to evolving consumer behaviour, stated Gupta.
On the technology front, Dollar Industries is transitioning from Oracle to SAP ERP systems, laying the groundwork for future AI integration. "We’re stabilizing SAP before leveraging AI to enhance our operations," Gupta shares.
Regional Expansion with Mahesh Babu
Looking ahead, Dollar Industries is focused on expanding its reach in South India, leveraging its strong sales performance in the region.
Gupta asserts, “The southern market currently contributes only 8% of our top line. We aim to accelerate our business growth in the southern market at a pace faster than the rest of the country. To support this, we have roped in Mahesh Babu as our brand ambassador and are actively working on our EBO plans. By 2025, we anticipate launching around 20 to 25 EBOs in the southern region, strengthening our presence and reaching a wider audience.”
The company has also done a campaign with Akshay Kumar.
Budget Expectations
As the Union budget is likely to be tabled on February 1, various industry bodies have put forth their demand before Finance Minister Nirmala Sitharaman.
Gupta, through CII, has also shared his list of demands. “We have highlighted several key challenges facing the industry. First, the absence of the government's Production-Linked Incentive (PLI) scheme for the cotton hosiery sector is a significant drawback. Additionally, the government has discontinued the 2% interest subvention scheme for exports, which we’ve urged them to reinstate to enhance India’s competitiveness in global markets. Textile exports are a crucial segment, contributing significantly to India's trade with the rest of the world.”
“Another concern is the withdrawal of the income tax benefit for new factory setups. Previously, factories established under this scheme were eligible for a subsidized income tax rate of 15%, but this benefit was removed starting April 1. These three critical issues have been brought to the government’s attention as they are vital for steering the industry forward,” noted Gupta.
Under his leadership, Dollar Industries has evolved into a key player in India’s hosiery sector, commanding a 15% market share with an annual turnover of ?1,500 crore in FY24.
From its origins in 1972 to its current status as a market leader with a 15% market share in branded hosiery, Dollar Industries’ journey mirrors India’s evolving retail landscape. As 2025 unfolds, Gupta’s confidence in navigating the challenges and leveraging opportunities shines through — a leader firmly committed to growth and innovation.
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