‘Raymond Branded Textiles’ expects business recovery to take mid-term time frame
India’s leading player in suiting and shirting Raymond expects recovery in the segment to take a ‘mid-term time frame’, primarily driven by occasion- and celebration-led dressing along with ongoing vaccination.
In its latest annual report, Raymond said, it expects a modest growth in the fabric business with increasing competition from ready-made garments, besides low traction for the near term in the exports market due to the pandemic.
The brand’s sales of branded textiles in 2020-21 declined nearly 46 per cent to Rs 1,572 crore, as against Rs 2,917 crore of 2019-20. Sales at its four differentiated brands - Raymond Ready to Wear (RRTW), Park Avenue, ColorPlus and Parx — declined by 71.8 per cent to Rs 457 crore in 2020-21 as against Rs 1,619 crore a year ago.
Raymond is facing challenges such as low consumer sentiments, heavy discounting by players to clear old inventory including on e-commerce marketplaces, and extended end of season sale (EoSS). Alluring price cuts are also mounting pressure on margins, it added.
Besides, retail operations of the company, which operates in several formats including The Raymond Shop, exclusive brand outlets for its in-house brands, was also "majorly impacted" due to the lockdowns in H1 FY2020-21, Consumer demand for the company’s products picked up in the second half with Unlock-1, festivities, EoSS and wedding season,
Besides, it is also facing round-the-year sales promotions and deep discounting by e-commerce marketplaces. The company also operates in tools and hardware and auto components segments. These segments delivered high growth rates both in terms of revenue and Ebitda margins. Its realty business emerged as the new core of the company
Raymond''s consolidated revenue stood at Rs 3,648 crore for the financial year ended March 31, 2021. It had a revenue of Rs 6,578 crore in 2019-20.
