India: Raymond plans to increase exports to seek growth

Company Performance

India: Raymond plans to increase exports to seek growth

Raymond, the branded textile for men’s suits, plans to increase its exports four times in the next five years to seek growth as the domestic market faces a relative slowdown.

Raymond reported a 10 per cent annual growth in its consolidated net sales to Rs 12240 mln in the quarter ended September. This included the core textile, branded apparel, garmenting, retailing and denim businesses along with the subsidiaries for tools and auto component operations. However, the company’s mainstay of branded textile business, which constitutes nearly half of the company’s revenue, grew at seven per cent to Rs 5590 mln in the quarter.

In FY13, Raymond recorded net profit of Rs 287mln on the back of Rs 40.69 mln in revenue. With a target of Rs 10000 mln annual export over the next five years, the company looks at a 10-15 per cent year-on-year. The firm plans to invest about Rs 10000mln in the next five years to increases its garmenting capacities. The investment also includes the company’s plan to expand its retail footprint by 30 to 50 stores in a year.