Well in my view, mr.Jacob is specialised in infant wear under 2 years and he uses cotton and organic for these clothing wears.the fibres are developed in house. Jockey though was a good client but wanted more of synthetic cloths for adults I believe. So here was a dilemma. To leave the focus and long term goal on scaling in a specialised infant wear segment or to diversify into synthetics with significantly more investment and loosing focus.
In my view Mr. Jacob took the right decision and took a hit and exited the segment completely for a short term pain and long term gain. He now focuses on scaling his business and improving the margins further by forward integration of selling the infant wear himself and thorough Lamaze.
I am yet to see how well this forward integration works out.
Disc: Not invested but being curious and keeping an eye.