Trident Group is one of the leading players in the textile and paper industry. Not only in our country but also around the world! With a staggering 68% of its revenue flowing in from exports, its influence extends far beyond national borders. Yet, this is just the tip of the iceberg. Especially, when it comes to understanding the intricacies of the Trident Business Model!
While the numbers tell a compelling story, delving deeper into the mechanisms that drive Trident’s financial success unveils a fascinating narrative. And that touches various facets of the company’s operations.
In this article, we’ll decode the Trident business model, shedding light on how this conglomerate leader turns threads into gold!
(A) Trident Group in a Nutshell
Trident Group, a billion-dollar conglomerate, traces its roots back to 1985. Those were the days when India embarked on a thrilling journey of liberalization and industrial transformation. Trident’s founder, Rajinder Gupta, a young and aspiring entrepreneur, established a chemical plant in the fertile lands of Punjab.
Initially, the group began its journey with a single division dedicated to producing high-quality yarn. Over time, Trident Group achieved remarkable growth, evolving into the world’s largest manufacturer of terry towels. Also, it became one of the leading integrated home textile manufacturers globally, an achievement unparalleled in its industry.
In 2007, the founder Rajinder Gupta was bestowed with the prestigious Padma Shri Award by the President of India. He was awarded for outstanding contributions to the realms of Trade and Industry. A recognition that was widely celebrated for its significance.
Today, the group boasts a diverse product portfolio spanning home textiles, stationery, paper, yarn, and chemicals. With over 25 manufacturing plants and numerous stores, complemented by a network of more than 15 global offices, Trident Group’s workforce exceeds 15,000 dedicated employees. Its global reach extends to a customer base spread across 150+ countries.
Trident Group is steadfast in its commitment to becoming a trusted brand that prioritizes the well-being of its customers, employees, and all stakeholders. It strives to provide them with the utmost care and service excellence. And all of it has been possible due to its outstanding business model.
(B) A Brief Overview
Before diving deeper into the Trident Business Model, let’s have a brief overview of the Trident Group-
|Name of the Company||Trident Group|
|Type of Company||Public|
|Operating Industry||Textiles and Paper|
|Market Cap (2023)||Rs.20,656 crore|
|Revenue (FY23)||Rs.6,291 crore|
|Profit (FY23)||Rs.421.9 crore|
|Competitors||Formosa Chemicals & Fibre, C|
ATA, Jiangsu Zeyusen Carbon
|Clients (Customers)||Ralph Lauren, Calvin Klein, |
Sam’s Club, Burlington, etc.
Now, it’s time to delve thoroughly into Trident business model. Let’s begin!
(C) Working Strategy: How Trident Works?
As you have read above, Trident Limited serves as the flagship company of the illustrious Trident Group with a global presence. This boils down to a question, What exactly makes it an illustrious group? What does Trident Group do?
Trident Limited has established itself as a vertically integrated textile and paper manufacturer company. It is mainly involved in crafting yarn, towels, bed sheets, and paper, primarily from wheat straw. This versatile product range has garnered international acclaim, enchanting consumers both in India and around the world.
Let’s peep into the working strategy of the Trident Business Model in detail-
(C.1) Business Segments of Trident Limited: Diverse Portfolio
- Yarn: Trident Group is involved in yarn manufacturing. They produce high-quality yarn used in various textile products.
- Towel: The company is a leading manufacturer of towels, producing a wide range of towel products for domestic and international markets.
- Bedsheets: Trident Group manufactures bed sheets, catering to the home textile industry. Their bed sheets are known for their quality and variety.
(C.1.2) Papers & Chemicals
- Paper: Trident Group is a significant player in the paper industry. They manufacture paper from wheat straw-based raw materials, emphasizing sustainability in their production processes.
- Chemicals: The chemical segment complements their paper manufacturing operations, providing essential chemicals required for various industrial processes.
These diverse business segments allow Trident Group to mitigate risks associated with single-industry dependence. Simultaneously, it caters to a wide range of customer needs in both domestic and international markets.
(C.2) Paper Division: How does Trident manufacture premium quality paper?
Go through the table given below to understand the paper manufacturing process of Trident-
|Steps||Description of Paper Manufacturing Process|
|Raw Material Procurement||Source raw materials, primarily wheat straw, from agricultural fields.|
Transport harvested wheat straw to the manufacturing facility.
|Preparation of Raw Material||Clean and sort wheat straws to remove impurities like dirt and stones.|
Cut the wheat straw into smaller pieces and store them for further
|Pulping||Break down the prepared wheat straw into fibers through mechanical or |
chemical pulping processes.
|Bleaching (Optional)||Optional process to achieve desired brightness and color for the paper.|
|Paper Formation||Mix the pulp with water to create a paper stock or pulp slurry. |
Spread the mixture onto a wire mesh screen or conveyor to form a
continuous sheet of paper.
|Pressing and drying||Pass the newly formed paper sheet through rollers to remove excess water. |
Dry the paper using heat and pressure in large drying machines.
|Calendaring||Optional process to improve paper’s smoothness and finish by |
pressing it between rollers.
|Cutting and reeling||Cut the dried and calendered paper into rolls or sheets of the desired size.|
Reel the rolls or sheets, preparing them for packaging.
|Quality Control||Conduct quality control checks throughout the manufacturing process |
to ensure the paper meets industry standards.
|Packaging||Package the finished paper rolls or sheets, getting them ready for distribution.|
|Distribution||Distribute the final paper products to customers, which may include |
wholesalers, retailers, or other paper-consuming industries
(C.3) Home Textile Expertise
As one of the world’s largest vertically integrated businesses in the home textile industry, Trident Limited specializes in bath and bed linen. The company is a bastion of innovation, with expertise extending to manufacturing infrastructure, fiber utilization, yarn production, and processing.
With design studios in the US and the UK, Trident remains attuned to industry trends, offering innovative products designed by a team of highly trained professionals.
Let’s look into the two major textile divisions of the Trident business model-
(C.3.1) Bed Linen Division
Trident Limited offers comprehensive bedding solutions with an extensive product line and robust design capabilities. The company’s unwavering commitment to quality and innovation has solidified its reputation as a trusted name in the industry.
Product Portfolio for Bed Linen Includes the following-
- Bed linen
- Spa and hotel
- Dobby texture
- Bath mats
- Infants and kids
- Bath rugs
(C.3.2) Bath Linen Division
Within the bath linen division, Trident Limited reigns as the largest terry towel manufacturer and a prominent supplier of bath linen in the US. The company is a trailblazer in innovation, consistently launching top-quality products adhering to global standards. Key production facilities for home linens are located in Barnala (Punjab) and Budni (Madhya Pradesh).
Product Portfolio for Bath Linen Includes the following-
- Spa and hotel
- Dobby texture
- Bath mats
- Infants and kids
- Bath rugs
(C.4) Textile Manufacturing Process
The textile manufacturing process involves the following steps-
|Steps||Description of Textile Manufacturing Process|
|Raw Material Sourcing||Procure textile fibers (e.g., cotton, polyester) from |
|Fiber Preparation||Clean, sort, and prepare raw fibers for processing.|
|Spinning||Convert prepared fibers into yarn using spinning |
|Weaving/Knitting||Use weaving machines or knitting to create fabric |
or textile products.
|Dyeing /Printing||Apply color and patterns through dyeing and printing |
processes (if needed)
|Finishing||Enhance texture, appearance, and durability through |
|Quality Control||Conduct checks to ensure textiles meet quality standards.|
|Cutting/Sewing||Cut and sew textiles for products like clothing |
|Packaging & Distribution||Package finished products and distribute them |
to customers worldwide.
(C.5) Online Presence and E-commerce
Trident Limited has made significant strides in e-commerce, leveraging its omni-channel retail expertise. The company is actively pursuing digital expansion opportunities to capitalize on emerging market trends.
(C.6) Business Partnerships and Copier Segment
Trident Limited boasts a reputation for strong business partnerships and holds the top position in the North Indian region for branded copier products. The company’s success extends beyond financial performance, as it is firmly rooted in the values of sustainability and social responsibility.
(C.7) Commitment to Sustainability and Innovation
Trident Limited’s mission revolves around creating products that not only meet customer expectations but also adhere to the highest sustainability standards. The company is committed to delivering quality products while fostering a positive impact on society and the environment.
(D) Revenue Sources: How does Trident Make Money?
Trident generates revenue from various sources across its diverse business segments. Do you know, that 68% of Trident’s revenue flows in from exports? The textiles account for 79% of the revenue whereas the paper and chemical segment account for 21% of the revenue. Later, we will discuss them in detail.
For now, let’s look at the diverse revenue sources of the Trident business model-
(D.1) Textiles Revenue
- Yarn Sales: Revenue is generated from the sale of yarn produced in Trident’s spinning units. Yarn is a crucial raw material for various textile products.
- Towel Sales: Trident manufactures and sells towels, including bath towels, hand towels, and others, contributing to its textile revenue.
- Bedsheet Sales: The company’s bedding products, including bed sheets, contribute significantly to its textile segment revenue.
- Fabric Sales: Trident also sells various types of fabric to customers for further processing or resale, adding to its revenue stream.
(D.2) Paper & Chemicals Revenue
- Paper Sales: Trident Group manufactures paper products from wheat straw-based raw materials. Revenue is generated from the sale of these paper products, which can include copier paper, packaging materials, and more.
- Chemicals Sales: Revenue is earned from the sale of chemicals produced in the chemical division, which are essential for various industrial processes.
(D.3) Home Textiles Revenue
- Bath Linen Sales: This includes revenue from the sale of bath towels, bath mats, bath rugs, and related bath linen products.
- Bed Linen Sales: Revenue is generated from the sale of bed linens, including bed sheets, pillowcases, and related products.
- Designer and Special Collections: Trident offers designer and special collections within home textiles, attracting premium customers and contributing to revenue.
(D.4) Export Revenue
Trident exports its textile and paper products to international markets, contributing significantly to its revenue. Export markets include countries in North America, Europe, the Middle East, and other regions.
Trident Group’s revenue sources are diverse, encompassing various aspects of the textile, paper, and chemical industries. This diversity helps the company remain resilient and adaptable to market fluctuations and changing consumer trends.
(E) Financial Performance of Trident
Let’s Compare the financial performance of Trident in this fiscal year to the last financial year.
|Total Revenue||Rs.62,913 million||Rs.69,415 million|
|EBITDA||Rs.9,418 million||Rs.15,100 million|
|Net Profit||Rs.4,219 million||Rs.8,150 million|
|Net Worth||Rs.41,258 million||Rs.37,972 million|
It looks like the financial performance of FY22 was better than FY23. Do you know the reason? Inflation! Yes, the inflation has left no stone unturned to get on the nerves of Indian companies. Even the daily essentials like vegetables and groceries were hit badly due to inflation.
We have covered the issues and reasons behind sky-high vegetable prices in 2023. For more information check out the article “Why vegetable prices are rising high?”
Apart from inflation, there are many other reasons that impact the earnings of the company. What are they? We will discuss them in the upcoming sections.
(F) Revenue Split Between the Segments
Can you guess which segment contributes the highest revenue to Trident business model? Textiles or paper? Well, to know that, you have to go through the table given below-
|Fiscal Year||Bath & Bed Linen||Yarn||Paper|
Now, let’s look at the segmental revenues of the company and compare the YOY business results-
|Segment||Revenue Earned (FY23)||Revenue Earned (FY22)|
|Textiles||Rs.49,243 million||Rs.59,423 million|
|Paper & Chemicals||Rs.13,432 million||Rs.9,797 million|
Note: The data is taken from the annual report of FY23, officially published by the Trident Group.
(G) Marketing Strategies of Trident
Some of the most effective marketing strategies of the Trident business model are described below-
(G.1) Innovative Product Launch Campaigns
Trident Group introduced its latest towel solutions, Tri-Safe, FaBo, and Play, utilizing innovative marketing strategies across platforms. These product lines emphasized wellness, hygiene, and performance, aligning with changing consumer expectations. For instance-
- Tri-Safe: This groundbreaking antibacterial product is designed with a unique antibacterial topical treatment, offering skin-friendly and OEKO-TEX-certified hygiene.
- FaBo: Trident FaBo is specially designed to address the risk of infections when using the same towel for both the body and face. It treats body and facial skin differently.
- Play: Trident Play caters to fitness enthusiasts with colorful, organic cotton towels for sports and gym use, free from pesticides and synthetic fertilizers.
(G.2) Celebrity Endorsement
At the annual trade expo for home textiles and décor in Mumbai, Trident unveiled its new bath and home linen collection. This was done with Bollywood actress Kriti Sanon as the face of the “The Affair to Remember” campaign. This celebrity endorsement adds star power to the brand’s marketing efforts.
(G.3) Social Media Marketing
Trident Group maintains a strong social media presence across various platforms to engage with its audience and promote its products.
- Facebook: With over 2 million followers, Trident is the most active and followed on this platform.
- Instagram: Their Instagram account boasts 19.7K followers, sharing visual content and updates.
- LinkedIn: On LinkedIn, Trident has a significant following of 212K professionals in the industry.
- Twitter: The company has a Twitter following of 4.8K+ users.
(G.4) SEO Strategies
Trident Group places emphasis on Search Engine Optimization (SEO) to enhance its online visibility and reach.
- Keyword Ranking: Trident’s impressive 16K+ organic keywords indicate a strong SEO strategy.
- Website Traffic: With over 97K+ monthly visits, Trident’s website traffic demonstrates effective SEO efforts.
(G.5) Mobile Apps
Trident Group has developed several mobile apps to enhance customer engagement and accessibility:
- TriConnect: With 500+ downloads.
- Trident – Together Stronger: A mobile app with a 3.5 rating and 5K+ downloads.
- Trident – FOS App: A mobile app with a 4.4 rating and 1K+ downloads.
(G.6) Content Marketing Strategies
Trident employs content marketing by publishing news articles and press releases on its official website, providing valuable information to its audience.
(G.7) What are the unique aspects of Trident’s marketing strategies?
- Trident offers a diverse range of home decor textiles, catering to various consumer preferences.
- Their engaging marketing campaigns effectively target their audience, showcasing a strong understanding of consumer needs.
- Trident maintains an impressive social media presence, backed by solid SEO rankings.
- The brand’s commitment to content marketing and mobile app development enhances its customer engagement.
Thus, the diverse product offerings and marketing methods offer valuable experiences to its audience.
(H) Challenges & Solutions
There are a few short-term challenges that impact the earnings of Trident Group. These are-
- Volatile Cotton Prices
- Rise in the input costs
- Demand slowdown
- Geopolitical Tension
To tackle these challenges and to protect its margins, Trident has taken the following initiatives-
- Focus on new and innovative products
- Capacity expansion
- Catering to luxury, fashion, and sports segments for high profitability.
- Moving towards higher retail price point products
- Exploring hedging strategy for cotton at for cotton at the exchange.
(I) Future Plans of Trident Group
Trident also intends to boost the efficiency of its manufacturing facilities by implementing digital processes. Among these initiatives, the company is set to launch an additional spinning project, aiming to increase yarn production capacity at an estimated cost of Rs 5540 million.
Additionally, Trident plans to optimize its sheeting plant in Budhni, increasing its daily capacity by 70,000 meters, with a project investment of Rs 4680 million. To finance these expansion projects, the company intends to raise capital through a combination of debt and equity components, as stated in its official statement.
In conclusion, the Trident Business Model offers a comprehensive view of how this industry leader in textiles and paper products operates and thrives. Trident’s commitment to innovation, sustainability, and customer-centricity shines through in its diversified product portfolio, robust marketing strategies, and a keen eye for global expansion.
By leveraging digitalization, strategic partnerships, and its unwavering dedication to quality, Trident continues to strengthen its position in both domestic and international markets. The company’s ability to adapt to changing consumer demands and its strong emphasis on social responsibility underscores its enduring success in the competitive landscape.
Trident’s story is a testament to the power of innovation and sustainable practices in achieving lasting business excellence!