Raymond is strengthening its presence in Middle East and South Asia

Raymond is expanding its footprints across the globe. The fabrics and garments company is strengthening its presence in the Middle East and South Asian countries as part of its overseas push. Already their brand is accepted in 55 countries and now they are trying to make it stronger in the Middle East and South Asia. The company recently opened an office in Dubai which would look after the Middle Eastern markets. The company has been supplying fabrics to leading garments manufacturers in the US, Europe and Japan.

The textiles division of Raymond was contributing about 35 per cent to the overall revenues. The division’s revenues in the last fiscal was Rs 2,300 crore which was expected to grow at 10 per cent year-on-year. For Raymond, the eastern region which is the biggest in terms of sales and large portions of sales come from retail outlets and multi-brand outlets. Raymond is well known for its worsted suitings – it is one of the largest producers of it – and brands like ColorPlus, Park Avenue and Parx. It has over 700 shops in 200 cities.

Raymond’s branded apparel business clocked in a revenue growth of 18 per cent in 2015-16 while the company’s operating profit margin was negative at -0.6 per cent. It is expected to be more profitable as it gains scale and there is renewed focus on brand building and dedicated retail expansion. The branded garments segment is expected to have 48 per cent share of overall readymade garments segment in 2019, up from 35 per cent in 2014. Raymond has taken several steps to in the last two years to reduce working capital, rationalise its product portfolio and revamp stores to improve the consumers’ shopping experience. Raymond has been in textile manufacturing and retailing business since 1925.