Raymond plans to take on rival brands

Textile company Raymond Group plans to now moving from consolidation mode into the growth mode and is looking to take on rival brands such as Louis Philippe, Arrow, Van Heusen, Peter England and John Miller, with its new line, which will be introduced under its Raymond brand that’s known more for its suitings fabric range.

Raymond already sells ready-to-wear clothes through its Park Avenue, Parx and ColorPlus brands that cater to the mid-market and premium segments. The new Raymond line will have shirts priced from Rs.1,500 to as much as Rs.10,000, and suits from Rs.6,000 to Rs.46,000.
The company will also integrate its Makers brand into the parent brand in six-nine months.

It plans for renovation of about 150 exclusive franchisee Raymond stores, over the next three years and open another 80-100 exclusive store in the next year. The capital expenditure on the renovation will be handled by the franchisees themselves.

According to Amit Gugnani, senior vice-president, fashion–textile and apparel and engineering, at Technopak, the menswear segment has been extremely attractive and it is only prudent for a company like Raymond with their kind of a consumer reach to expand more and tap the growing market.

About 42% of the total apparel industry make up of menswear and the organized market in the textile industry is small (around 19% of the total market in 2013), so there is a huge opportunity for existing companies such as Raymond.

India’s textile and apparel market was estimated at about Rs.3.23 trillion in 2013, and is projected to grow at a compounded annual growth rate of 9% to Rs.7.75 trillion by 2023

Growth in the apparel segment was low in the last six- eight quarters until June due to some inventory issues. In the December quarter, Raymond’s apparel segment picked up showing a grow of 15% from a year ago, compared with a fall of 7% in the corresponding year-earlier period and a 9% growth in the preceding three months.

Raymond has initiated a number of measures, including the introduction of a ready-to-wear line and stake sales in two group companies, as it prepares to grow faster and reduce its debt.