Companies

Raymond firm on India plans with ₹1,400-crore investment

Suresh P Iyengar Mumbai | Updated on January 12, 2018 Published on June 26, 2017

Gautam Hari Singhania, CMD, Raymond Group

Amravati plant, to be completed by year-end, will expand cotton textile manufacturing: CMD

Raymond plans to invest ₹1,400 crore in a phased manner in its greenfield project at Amravati to expand the cotton textile manufacturing footprint. The plant, when completed by this year-end, will employ 8,000 workers and produce linen, cotton shirting, denim and garmenting.

“It is likely to be commissioned by the year-end. Spread across 500 acres, the project is in line with our strategy to expand the cotton textile manufacturing footprint by creating world-class linen, cotton shirting, denim and garmenting at the newly created Textile Park in Amravati,” Gautam Hari Singhania, Chairman and Managing Director, Raymond Group, told BusinessLine.

On the retail side, the company plans to put up 300 Raymond shops and 200 other format shops under Park Avenue and Colour Plus in tier-IV and tier-V cities over the next two years. It currently has 1,100 shops in 450 cities.

The company recently announced plans to manufacture from Ethiopia as the country has preferred access to certain developed markets. “We are targeting export revenue of ₹250 crore per annum from Ethiopia and should break even in three years,” he said. Though Raymond will make suits for leading global brands and retailers such as JC Penny, Express, Calvin Klein and UK brand Suitsupply from Ethiopia, it has no plans to launch its own brand in US and Europe.

“It is sexy to say I’m going to sell my Raymond suits in England but it does not make economic sense. We will use our brand strength in India and tap neighbouring markets in West Asia, Nepal, Sri Lanka and Bangladesh,” he said. The company has committed 2.70 lakh manhours to create fashion with Khadi. It recently launched a branded Khadi label — ‘Khadi by Raymond’ — in Mumbai.

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Published on June 26, 2017
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