Raymond’s ‘Complete Man’ is ready to go to the developed markets in America, Europe and East Asia as the textile company seeks to expand the network of its Made to Measure (MTM) stores. With plans to invest around ₹200 crore, the company is looking for partners to help it grow its overseas business.
“The bespoke model under Made to Measure is a more relevant proposition for the developed economies, and today, we are ready for a global footprint in Europe, America and East Asia,” says Sanjay Behl, CEO, Raymond.
“We can also improve our gross margins by becoming the preferred supplier for worsted fabrics and garments and become an integrated solutions provider for the global market. From being a power brand in India, we want to become a global icon in lifestyle in the next five to 10 years,” he adds.
The company is already exporting to these markets, but as a B2B (business to business) player.
While it already has about 20 Raymond MTM stores in South and West Asian nations, entering the developed markets will be a new challenge.
It is likely to enter these markets by appointing master franchisees.
In the domestic market, the company has 70 Raymond MTM stores and intends to take it up to 300 in three years.
“We are scaling up our Made to Measure stores in the metros while the expansion of ‘The Raymond Store’ will happen in the smaller tier 2 cities,” added Behl.
Raymond also plans to leverage the equity of its almost 90-year-old garment brands such as Raymond Premium Apparel, Park Avenue, Parx and Color Plus.
“While consumers will vouch for Raymond fabrics, it is weak in the ready-to-wear segment. Despite its heritage, Raymond has been an under-leveraged brand in apparel and it’s the third largest apparel player after Madura Garments and Arvind today,” he said.
With intensive competition from international players, Raymond is now positioning its brands with a new advertising agency (Strawberry Frog).
New segments, funds It may also re-enter new segments such as woman’s and kids’ wear through acquisitions.
“Textiles will remain the cash-cow for the company, while in apparel, it would be about investments. Retail margins are still higher in textiles at 25 per cent, while in apparel, it’s at 10 per cent,” said Behl.
Of its sales turnover of ₹4,500 crore, nearly ₹3,700 crore is contributed by textiles.
New sources of funds are also expected to emerge as Raymond is open to equity infusion by private equity players and also monetising its land assets in Thane, Maharashtra.