11 August 2023, Mumbai
Iconic
Raymond, one of India's oldest and most respected textile and apparel brands, has undergone a major restructuring in recent years.
The company has exited several non-core businesses, such as steel, cement, and synthetics, and is now focused on its core strengths of real estate, lifestyle, and engineering.
Focal point
The lifestyle business is a key focus area for Raymond, and the company plans to double its size in the next five years. In 2023, the lifestyle business saw a 19% growth in the branded apparel segment.
Raymond is investing in strategic initiatives to bring its power brands Colors, Park Avenue, and Raymond RTW back on track for growth and expansion.
Expansion
The company is also expanding its retail footprint. There are currently 300 Exclusive Brand Outlets (EBOs) between Colors, Park Avenue, and Raymond RTW, and the plan is to increase the number to 600 by 2025-26.
The newly launched label Ethnix will also be in focus, with plans to grow the number of EBOs from 75 to 300 by 2025-26.
Raymond is also looking to expand its presence in the casual wear segment, which accounts for 40% of the men's apparel market. The company plans to launch new casual wear brands and products under its Colors and Park Avenue labels.
In addition to its retail expansion, Raymond is also investing in digital marketing and e-commerce.
The company has launched its online store and is partnering with e-commerce platforms such as Amazon and Flipkart.
Strategizing
With its focus on restructuring, strategic investments, and expansion, Raymond is well-positioned to grow its lifestyle business in the coming years.
The company is targeting 17-20% EBITDA growth and a 15% revenue increase in FY24.
Key takeaways
Raymond is restructuring its business to focus on its core strengths of real estate, lifestyle, and engineering.
The company plans to double the size of its lifestyle business in the next five years.
Raymond is investing in strategic initiatives to bring its power brands back on track for growth and expansion.
The company is expanding its retail footprint and entering the casual wear segment.
Raymond is investing in digital marketing and e-commerce.
The company is targeting 17-20% EBITDA growth and a 15% revenue increase in FY24.
