02 September 2024, Mumbai
Raymond Lifestyle (RLL) plans to expand its B2B manufacturing capacity from 6.5 million to 10 million units over the next 12 to 15 months with an investment of Rs 200 crore. This strategic move is in response to the recent political instability in Bangladesh, which is pushing international brands to diversify their supply chains. As a stable democracy and the fastest-growing major economy, India is well-positioned to benefit from this shift, Sunil Kataria, RLL’s CEO and CFO, emphasises.
The China+1 strategy has already proven advantageous for India, boosting the country's textile exports from Rs 600 crore pre-pandemic to over Rs 1,100 crore, with EBITDA margins in exports rising to 10 per cent during the same period. The turmoil in Bangladesh is expected to further drive international brands toward India, presenting a significant growth opportunity for the Indian textile industry.
Highlighting the brand’s dominance in the Indian wedding market, Kataria says, the company holds a 5 per cent share in the segment valued at Rs 75,000 crore.
Notably, 92 per cent of this market remains unbranded, offering a substantial opportunity for Raymond to increase its share to 7 per cent. The total wedding market in India is estimated at Rs 1,100,000 crore, with clothing accounting for 23 per cent (approximately Rs 250,000 crore). The men’s wear segment, valued at about Rs 75,000 crore, is largely unbranded, with only 8 per cent captured by established brands.
To achieve its growth targets, RLL is implementing a comprehensive strategy to expand production, reach, and distribution. Raymond currently operates over 1,000 stores across 660 cities, with plans to add 650 to 700 more stores across all tiers of cities in the next four years. The company expects to achieve revenue growth of 12 per cent-15 per cent and profitability growth of 18 per cent-20 per cent during this period.
RLL’s men’s ethnic wear brand, Ethnix by Raymond, which focuses on wedding attire such as kurta pajamas and sherwanis, plans to increase its store count to 350-400 stores in years, targeting sales of Rs 600-700 crore.
Additionally, RLL is venturing into the branded sleepwear and underwear market, aiming to capture a largely unbranded segment estimated to be worth Rs 12,000 to 13,000 crore. According to Amit Agrawal, CFO, these segments offer high double-digit growth potential, with the possibility of substantial market expansion in the coming years.
