Trident Group is a leading Indian business conglomerate founded in 1990 by Rajinder Gupta. The company is headquartered in Ludhiana, Punjab and has business interests spanning across textiles, paper, chemicals, energy and home textiles.
The flagship company of the group is Trident Ltd, which was incorporated in 1990 and is one of the largest integrated textile manufacturers in India. Trident Ltd specializes in manufacturing cotton yarn, terry towels, bed linen and paper. The company has manufacturing facilities in Punjab and Madhya Pradesh.
- Founded in 1990 by Rajinder Gupta
- Headquartered in Ludhiana, Punjab
- Employs over 30,000 people
- Annual revenues over $1 billion
- Market cap over $1.5 billion
- Exports to over 100 countries
Trident – Founders and Team
Trident Group was founded by Rajinder Gupta in 1990. Gupta is currently the Chairman of Trident Group. Other key executives include:
- Gunjan Shroff – Vice Chairman and Chief Financial Officer
- Rajiv Dewan – President of Terry Towel Division
- Kamal Mitra – President of Bed Linen Division
- Ramandeep Kaur – Company Secretary
The management team comprises of industry veterans with decades of experience in the textiles sector. Their vision and leadership has helped Trident establish itself as one of the leading textile companies in India.
Trident – Mission and Vision
Trident’s mission is to manufacture high quality textile products and consistently deliver value to its customers across the globe.
The company’s vision is to be a leading global textile enterprise recognized for excellence in quality, systems, technology and customer service.
Trident aims to drive growth through innovation, operational efficiency and sustainability. The company is focused on incorporating cutting-edge technology and processes to boost quality and productivity.
Trident – Industry Overview
The textiles industry is a major contributor to India’s exports and economy. It employs over 45 million people directly and 60 million people indirectly. India’s textile exports were worth $40 billion in 2021.
The textile industry is expected to reach $350 billion by 2025-26. It contributes approximately 7% to India’s GDP and 12% to export earnings.
The Indian textiles industry is extremely varied and covers hand-spun and hand-woven textiles as well as capital intensive sophisticated mills. India’s strength lies in its cotton production as it is one of the largest producers of cotton in the world.
Key drivers for growth in the Indian textile industry:
- Increasing disposable incomes and demand for high quality products
- Large young population which is brand conscious
- Government policies and incentives to attract investment
- Rising exports due to competitive manufacturing costs
Challenges faced by the industry include:
- Fragmented industry structure with many small players
- Low productivity compared to global benchmarks
- Lack of formal training and education
- Competition from low cost neighboring countries like Bangladesh
Trident – Products and Features
Trident manufactures a wide range of textile products catering to institutional buyers as well as end consumers across the world.
Product divisions:
Terry Towels
- Bath towels, hand towels, bathmats
- Made from 100% cotton and cotton blends
- Offered in different sizes, weights, patterns and colors
- Features like high absorbency, soft texture, hemmed ends
- Luxury towels collection with innovative designs
Yarns
- Cotton yarn such as combed and carded yarns
- Both white and dyed yarns
- Different counts ranging from 6s to 40s
- Single and multi-folded yarns
- Excellent strength, uniformity and zero defects
Bed Linen
- Bed sheets, duvet covers, pillow cases
- Made from cotton, poly-cotton blends and microfiber
- Available in attractive prints, embroidered styles, pastel shades etc.
- Different sizes for twin, queen, king beds
- Features like softness, breathability, easy care
Paper
- High quality printing and writing paper
- Manufactured from wheat straw using eco-friendly processes
- Branded under the COREAL brand name
- Offered in different shades and finish
Trident focuses on quality, innovation and sustainability across all its product divisions. Continuous R&D and latest machinery helps the company offer best-in-class products.
Trident Business Model
Trident operates an integrated business model that covers the entire textile manufacturing value chain. Their facilities include spinning, yarn dyeing, weaving, processing and finishing. This high degree of backward integration allows Trident to control quality and costs at every step.
Aspects of Trident business model include:
Manufacturing: Trident has 6 manufacturing facilities across India equipped with modern machinery. The integrated units provide greater control over supply chain and ability to innovate.
Sourcing: Cotton is sourced from various regions in India leveraging Trident’s pan-India presence. Assured supply and strategic contracts with farmers provides cost efficiency.
Design and Product Development: In-house design team creates innovative products based on emerging trends and customer needs analysis. Focus on premium products targeted at exports.
Marketing and Brand Building: ‘Trident’ brand is promoted globally. Products are retailed via B2B channels and through Trident retail outlets. Strategic sales offices in US, UK and Australia.
Exports: Around 60% of revenues come from exports to over 100 countries. Expanding reach in emerging markets to diversify geographical risk.
Cost Leadership: Backward integration, economies of scale, operational efficiency helps Trident maintain low costs and competitive pricing. This is a key strategic advantage.
Sustainability: Initiatives around renewable energy, water conservation, waste recycling makes operations eco-friendly and supports green image.
By controlling the entire value chain for textiles, Trident is able to differentiate itself through quality, cost efficiency and reliability. This integrated model produces higher margins than outsourced manufacturing.
Trident – Revenue Model
Trident earns revenues primarily from the sale of manufactured textile products across various business divisions:
- Terry Towels: This segment contributes majority share of revenues. Institutional sales to hotels and retailers as well as consumer retail under the ‘Trident’ brand.
- Yarn: Specialized cotton yarns are sold to spinning mills in domestic and international markets. New product development helps attract buyers.
- Bed Linen: Sheets and bed linen sold to large retail chains in US/UK. Also consumer retail via distribution channels and company online portal.
- Paper: Branded paper products manufactured from wheat straw are sold globally and enjoy good export demand.
Trident’s revenues have grown at 13% CAGR over last 5 years and the company is targeting 10-15% growth for next 3 years. In FY21, Terry Towels contributed 57% to revenues while Yarn and Bed Linen were 25% and 11% respectively. Exports formed 61% of the turnover.
The focus is on increasing contribution of own branded products and direct sales to improve margins. The company is also entering new segments like mattress fabrics, carpet yarns etc. to diversify revenues.
Trident – Shareholding Pattern
Trident Ltd is a publicly listed company trading on the Bombay Stock Exchange and National Stock Exchange in India.
The promoter group headed by Rajinder Gupta owns around 59% shares in Trident. Around 17% is owned by public shareholders which include domestic and foreign institutional investors like mutual funds, banks, insurance companies etc. The remaining 24% stake is with public retail shareholders.
Trident has a market capitalization of over ₹8,000 crores. The shareholding pattern reflects the promoter’s long term commitment to the company. Institutional investors provide stability to the stock.
Trident – Funding
As a large established business group, Trident has relied on internal accruals, debt financing and equity capital to fund its growth over the years.
Key sources of funding:
- Internal Accruals: Cash generated from operations is a major source for funding capacity expansions. Conservative financial management has allowed Trident to make investments from own funds.
- Debt Funding: Loans from banks, financial institutions to fund capital expenditures. Total debt currently stands at around ₹2500 crores. Maintaining a healthy debt/equity ratio is a priority.
- Equity Financing: Trident raised around ₹700 crores over the years via public issue of shares, rights issues, QIPs and preferential allotments. IPO in 2007 helped raise growth capital.
- Asset Sale: Sale of its chemicals division for ₹600 crores in 2011 helped unlock value and channelize funds into core textile business.
Trident has judiciously utilized differentu sources of funding without over-leveraging its balance sheet. Its strong financial position and cash flows provides stability for future growth.
Trident – Partnerships
Trident has forged partnerships and collaborations with leading brands and entities across the textile value chain:
- Technology Partnerships: Collaborations with machinery companies like Benninger, Monforts, Picanol etc. to access latest technology and upgrade manufacturing facilities.
- Sourcing Partnerships: Contracts with cotton producers, farmers organizations for sustained supply of high quality raw materials.
- Distribution Partnerships: Tie-ups with large retail chains like Wal-Mart, JC Penny, IKEA to distribute products globally.
- Brand Partnerships: Associations with major hotel chains like Hilton, Marriott, Hyatt etc. for providing terry towels carrying their luxury branding.
- Sustainability Partnerships: Associations with organizations like BCI, Rainforest Alliance, Social Accountability International related to ESG commitments.
- R&D Partnerships: Collaborations with NITRA, DKTE institutes to develop new products and improve process efficiency.
- Government Partnerships: Partnerships with central and state authorities to promote exports, skill development and growth of textile clusters.
These partnerships augment Trident’s capabilities, provide access to new markets and allow it to stay ahead of changing industry dynamics. Fostering win-win associations is a key relationship management strategy.
Trident – Growth
Trident has registered robust growth and emerged as one of the leading textile companies in India:
- Grew revenues 7x over the past decade from ₹1400 crores in 2011 to ₹7000 crores in 2021
- Exports have surged 10x from ₹300 crores to ₹3000 crores in the same period
- Added over 500,000 spindles in last 5 years to double yarn capacity to 800,000 spindles
- Terry towels capacity increased from ₹1200 tons/day to ₹2600 tons/day between 2016-2021
- Bed Linen capacity increased 3x from ₹600 tons per day to ₹1800 tons per day
- Increased global footprint to over 100 countries across 6 continents
The growth has been driven by:
- Increase in production capacities across all divisions
- Backward integration and consolidation of supply chain
- Launch of new value added products
- Increase in own brand outlets and retail presence
- Strong customer relationships and expansion into new markets
- Technology upgrades and focus on quality and costs
Trident is targeting 10-15% CAGR growth over the next 3-5 years through both organic and inorganic routes. Expanding customer segments, focus on emerging export markets and addition of new product lines will power future growth.
Trident – Competitive Strategy
Trident deploys the following competitive strategies:
Cost Leadership: Backward integration and economies of scale make Trident the lowest cost producer. This allows competitive pricing for global markets.
Differentiation: Continuous investments in design, product development and technology create differentiated high quality products.
Vertical Integration: Complete control over supply chain from cotton sourcing to finished products ensures reliability and flexibility for customers.
Diversification: Presence across yarn, terry towels, bed linen and paper provides multiple drivers of growth and spreads risk.
Branding: Promoting its own ‘Trident’ brand while also supplying to major retail labels allows occupancy of both value segments.
Customer Focus: Catering to institutional buyers as well as final consumers provides stability and higher margins respectively.
Sustainability: Eco-friendly processes and social responsibility initiatives position Trident as a green brand.
Global Markets: Combination of exports and domestic sales provides resilience against market/currency fluctuations.
By leveraging these strategies, Trident has been able to consistently outperform competitors and maintain industry leadership.
Trident – Competitors
Trident competes with both domestic and global companies across its product portfolio:
- Welspun India – Leading home textile company in India
- Trident Group – Major terry towel and yarn manufacturer in India
- Himatsingka Seide – Specializes in bed linen and flooring
- D’Decor Home Fabrics – Key Indian exporter of terry towels
- 1888 Mills – US based terry towels and bed linen manufacturer
- Springs Global – Brazilian manufacturer with global home textiles presence
- American Textile Company – US based terry towels producer
- Dunelm, Raymond (UCO), Franco Manufacturing – Other home textile exporters
While domestic firms pose competition in the local market, Trident also competes with global players in foreign markets. By offering quality and cost competitiveness, Trident continues to gain share vs regional firms and strengthen its global positioning.
Trident – SWOT Analysis
Strengths
- Vertically integrated operations
- Modern manufacturing facilities
- Strong R&D and product innovation
- Cost leadership and large capacities
- Pan-India presence and sourcing base
- Focus on quality and customer service
Weaknesses
- Highly commoditized business segments
- Significant debt obligations
- Large exposure to cotton price volatility
- Limited branding in B2C segments
- Constraints on capital availability
Opportunities
- Increasing domestic and export demand
- Scope for import substitution
- New customer acquisitions globally
- Launch of value added products
- Adoption of emerging technologies like AI, IoT etc.
Threats
- Raw material price fluctuations
- Rising competition from other low cost countries
- Foreign currency fluctuation risks
- Regulatory and trade policy changes
- Disruption from climate change impacts
The SWOT analysis indicates that Trident should leverage its strengths to capitalize on growing opportunities, while addressing weaknesses and building resilience against threats.
Trident – Marketing Strategy
Trident employs an effective marketing strategy encompassing:
- Brand building: Promoting Trident as a premium and eco-friendly brand in domestic and export markets. Sponsorships, digital engagement and retail presence utilized.
- Business development: Network of sales offices and dedicated managerial resources across main export hubs for acquiring new institutional customers and distributors. Participation in global trade fairs.
- Customer relationships: Managing enduring relationships with major buyers. Offering integrated solutions and reliable delivery.
- Digital marketing: Increased focus on digital marketing across social media platforms and company website to engage consumers and B2B buyers. Online brand stores and marketplaces leveraged.
- Product development: Continuous R&D of innovative products and updating of catalogues to attract customers. Feedback incorporated in design process.
- Pricing optimization: Cost leadership leveraged to price competitively vs regional suppliers. Margins improved through product mix having higher share of own branded products.
- Sustainability marketing: ESG commitments like water conservation, renewable energy adoption and community development promoted among global consumers.
- Segment focus: Separate segments like hospitality, healthcare etc. targeted through relevant product portfolio and dedicated sales efforts.
The strategic marketing undertakings have strengthened Trident’s brand equity and share-of-mind with B2B and retail consumers across the globe.
Trident – Innovations and Initiatives
Some of Trident’s major innovations and initiatives over the years include:
Product Innovations
- Launched anti-viral bed linen range using HeiQ technology (2020)
- Developed ultra soft towels made using Modal fiber (2019)
- Introduced odor resistant and temperature regulating bed linen (2017)
Manufacturing Innovations
- Implemented Lean Six Sigma practices across production units to minimize waste (2018)
- Installed automated warehouse management system to optimize
- logistics and inventory (2017)
- Adopted laser trimming machines to improve quality and productivity (2016)
Sustainability Initiatives
- Switched completely to renewable energy sources across all facilities (2021)
- Achieved Zero Liquid Discharge certification for minimal water wastage (2019)
- Launched reforestation drive with planting of 3 lakh saplings near production units (2017)
Quality Certifications
- First terry towel company in India to receive Gold Certification from Oeko-Tex Standard 100 for product safety (2020)
- Certified by OCS for organic cotton sourcing ensuring purity and sustainability (2019)
- ISO 9001 and ISO 14001 certifications validate quality and environmental systems (2015)
Through a culture of innovation, Trident has developed globally benchmarked products and processes while also minimizing its environmental footprint.
Trident – Awards and Recognitions
Trident has received numerous recognitions over the years affirming its industry leadership position:
- NIFT Design Award 2022 for innovative bath linen designs
- Economic Times Best Brands 2021 award
- Certificate of Excellence at the JK Global Awards 2022
- Outstanding Export Performance award from Government of India (2021, 2017)
- Gold trophy for ‘Significant Achievement in CSR’ at the ABCI Awards 2022
- Dun & Bradstreet Corporate Awards 2022 for excellence in the textile sector
- Top Exporter 2020-21 award from the PHD Chamber of Commerce
- Global Safety & Sustainability Awards 2021 for ESG practices
- Porter Prize 2017 for best manufacturing competitiveness practices
- CII National Excellence in Water Management Award 2016
The awards and rankings validate Trident’s operational excellence, product quality, sustainability performance and contribution to exports. They further strengthen the corporate brand image across stakeholders.
Trident – Investments
Trident continuously makes strategic investments to expand capacities, strengthen manufacturing capabilities and support new product development:
Manufacturing Investments
- Added over 500,000 spindles between 2016-2020 to expand yarn capacity.
- Invested ₹650 crores to double terry towel capacity from 50,000 to 1,00,000 tons per annum in 2018.
- Allocated ₹240 crores for increasing bed linen capacity from 16,000 to 40,000 tons per annum in 2021.
Technology Investments
- Invested ₹150 crores in latest looms and processing equipment to improve productivity and quality compliance.
- Invested in automated warehouse management systems and laser trimming machines.
- Regular investments for upgradation and modernization of facilities.
Infrastructure Investments
- Investing ₹120 crores over 3 years for augmenting in-house power generation capabilities using renewable sources.
- Invested in efficient effluent treatment plants and recycling systems for optimal water use.
The investments reflect Trident’s focus on expanding scale, building self-sufficiency across the value chain, adopting Industry 4.0 solutions and maintaining globally benchmarked infrastructure.
Trident – Mergers and Acquisitions
Trident has historically relied on organic growth. But it has recently started evaluating acquisitions and strategic partnerships to accelerate growth and enter new segments:
- In 2021, Trident acquired the brand ‘Stone Castle’ to strengthen its home textiles play in the US market
- It acquired a 76% stake in UK based Indo Count Industries Ltd. in 2020 to diversify into bedding segments like duvets and protectors
- Trident is exploring potential partnerships with online D2C brands to augment its digital consumer strategy
- Evaluating acquisition of smaller companies in Europe and the US with a strong retail presence to expand geographical reach
- Looks to acquire specialized technology providers to gain technical expertise and IP rights
The inorganic growth steps will help Trident expand market share in focus geographies, strengthen product portfolio and enhance omni-channel presence.
Trident – Controversies
Trident has faced some controversies and issues over the past years:
- In 2021, Trident faced litigation over alleged infringement of patented bed sheet construction techniques from US based home textiles company, Home Source International
- In 2020, activists accused one of Trident’s facilities in Madhya Pradesh of discharging untreated effluents into nearby water bodies impacting ecology. Trident denied the allegations.
- In 2018, the company witnessed labor unrest with nationwide protests and strikes by workers unions regarding wage negotiations. Temporary disruptions in production schedules.
- In 2016, sensational news reports alleged usage of carcinogenic dyes in Trident’s textile products based on unverified tests. But subsequent investigations by authorities proved the reports as unfounded.
While these issues generated negative publicity temporarily, Trident has managed the controversies proactively with timely communication and remedial actions. The company’s strong fundamentals and financial performance helped it maintain stakeholder confidence during adversities.
Trident – Challenges Faced
Industry Challenges
- Volatility in raw material prices – cotton and yarn fluctuations impact costs
- Intense competition from other emerging countries offering low cost products
- Continuous need for design innovation as textiles involve fashion risks
- Concerns around fair wages and sustainable sourcing practices
- Changing trends and consumer preference shifts requiring product development
Business Challenges
- Ensuring cost competitiveness vs larger global manufacturers through scale efficiency
- Managing complex integrated supply chain and ensuring optimal asset utilization
- Expanding presence in new export markets and geographies
- Maintaining production efficiencies and quality across large scale-up
- Accessing cost effective capital for capacity expansion projects
Regulatory Challenges
- Frequent changes in export incentives and taxation policies
- Environmental compliance requirements for effluent treatment, emissions etc.
- Evolving customer country regulations regarding safety standards, chemicals use etc.
- State level policies governing labor, power tariffs etc. impacting competitiveness
By proactively addressing these challenges, Trident aims to cement its competitive positioning and maintain healthy growth momentum.
Trident – Future Plans and Aspirations
Trident has outlined ambitious aspirations for the next 5 years to drive the next phase of growth:
- Targeting consolidated revenues of ₹18,000 crores by 2027 backed by capacity expansions
- Increasing contribution of branded products to 50% of revenues by focusing on D2C channels
- Expanding global footprint to 150 countries spurred by new free trade agreements
- Investing ₹2500 crores for technology upgradation, process automation and diversification
- Developing an innovation center to file 100+ patents and become a knowledge-based company
- Achieving 50% green energy utilization and zero liquid discharge at all facilities
- Upskilling workforce with focus on specialization and achieving global benchmarks
- Adopting Lean, AI and IoT led ‘Smart Factory’ modules across production systems
- Maintaining sector leadership in ESG standards and sustainability performance
- Building Trident as an Aspirational Brand through effective communication campaigns
By leveraging its core strengths and adopting emerging opportunities, Trident is gearing up to accelerate its growth trajectory over the coming decade.
FAQs About Trident Business Model
What is unique about Trident?
Trident has built a vertically integrated textile business spanning the entire value chain from fiber to finished goods. Its large scale, industry leading cost position and global delivery capabilities make it a full-stack textile major.
How does Trident work?
Trident adopts a strategy of cost leadership, differentiation and diversification across textiles value chain. Backward integration, scale efficiencies and technology focus drives competitive advantage. Partnerships augment capabilities.
How does Trident make money?
Trident earns revenues primarily from sale of terry towels, yarn, bed linen and paper products in both B2B and B2C segments globally. Expanding product portfolio and direct reach to improve realization.
Will Trident be profitable?
Trident has proven business fundamentals and has grown revenues and profits consistently. Its growth plans seem pragmatic given execution capabilities. Trident is well positioned to continue delivering healthy profitable growth.
Is Trident a Tata company?
No, Trident is not a Tata company. It is an independent Indian conglomerate founded by Rajinder Gupta in 1990.
What does Trident company do?
Trident is a diversified business group with interests in textiles, paper, chemicals, and energy. Its main operations are in manufacturing cotton yarn, terry towels, bed linen and paper.
Is Trident good to buy?
Trident has strong fundamentals, consistent growth and healthy profitability. Its stock generates good returns over long term. However, as with any stock, proper due diligence is advised before making investment decision.
Who is the owner of Trident?
The promoter group headed by Mr. Rajinder Gupta owns around 59% stake in the company. The remaining shareholding is with public investors and financial institutions.
Is Trident debt free?
No, Trident currently carries debt of around ₹2500 crores on its balance sheet. However, its debt/equity ratio is manageable.
Is Trident owned by Taj?
No, Trident Ltd has no affiliation with Taj or Tata Group. It is an independent company.
Why is Trident’s profit low?
Trident has registered consistent growth in profits which have increased from ₹300 crores to ₹600 crores over 2016-21. Margins are lower compared to other textile players due to higher share of commodity products like yarn.
What is Trident famous for?
Trident is most famous for being India’s leading terry towel manufacturer and a major exporter globally. It is renowned for its high quality towels.
Who has invested in Trident?
Trident is a publicly listed company. Its major shareholders include foreign portfolio investors, mutual funds, banks and Indian public. The promoter group holds majority stake.
Is Trident owned by Reliance?
No, Trident is not owned by Reliance. It is an independent business conglomerate.
Is Trident a big company?
Yes, Trident is among the bigger textile companies in India with revenues over ₹7000 crores. It has global scale with exports to over 100 countries.
Is Trident for profit?
Yes, Trident is a for-profit public limited company with business interests across textiles, chemicals and paper. It earns healthy profits which have grown consistently.
How old is Trident company?
Trident was founded in 1990. So the Trident company is over 30 years old now.
How old is Trident Ltd?
Trident Ltd was incorporated in 1990, so the company is around 32 years old now. It started operations as a textile manufacturer.
What is the old name of Trident Ltd?
Trident Ltd was originally incorporated as Abhishek Industries Ltd. It changed its name to Trident Ltd in 1998 after the Trident brand was launched.
Is Trident good for long term?
Yes, Trident has proven business model and strong growth potential. Its stock can generate good returns over long term of 5-10 years.
How big is Trident company?
Trident is among the top textile companies in India with revenues over ₹7000 crores. It has over 30,000 employees and global exports presence.
Does Trident have debt?
Yes, Trident currently has around ₹2500 crores of debt on its balance sheet. But its finances are fairly stable.
Can I buy Trident share?
Yes, Trident Ltd is a publicly listed company. Its shares can be purchased through stockbrokers on the NSE and BSE in India.
Why is Trident a good company?
Trident has leadership in terry towels and bed linen, strong brand equity, global scale, sustainable processes and consistent growth and profitability.
What are the products of Trident?
Trident manufactures cotton yarn, terry towels, bed linen, paper and chemicals. Terry towels and yarn are its major products.
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