Supply chain optimization underpins apparel margin strategy for Raymond Lifestyle

Raymond Lifestyle has designated Birajeev Singh as Head- Supply Chain, positioning cross-industry operational experience at the center of its retail execution strategy. Bringing over 23 years of logistics oversight across the chemical, infrastructure, and pharmaceutical sectors, Singh’s mandate focuses on rationalizing procurement logistics and accelerating throughput across the fashion group’s multi-channel network.

Margin mitigation amid raw material headwinds

The leadership alignment comes as elevated raw material prices and rise in freight expenses squeezed Raymond's profit before tax by 16 per cent to Rs 91 crore in Q2, despite top-line revenues expanding 14 per cent Y-o-Y to Rs 2,125 crore. To insulate EBITDA margins - which softened by 120 basis points to 12.7 per cent - the company is optimizing its retail footprint by closing 53 underperforming stores while opening 24 high-footfall locations, maintaining a network of 1,634 outlets.

Operational execution and capital allocation

A practical case study of this operational overhaul involves realigning inventory turnover across garmenting and ethnic wear divisions to support full-year EBITDA targets.  The brand remains on track to deliver double-digit top-line growth while working toward closing the fiscal year with over Rs 300 crore in net cash surplus, states Satyaki Ghosh, CEO.

Strengthening performance with retail expansion

Raymond Lifestyle manufactures and retails premium suiting, shirting, and branded apparel across flagship labels including Park Avenue, ColorPlus, and Ethnix. Spun off to operate as an independent entity in 2024, the apparel major expands its 12.4-million-member loyalty network and domestic retail presence to strengthen multi-year cash flow performance.