With its new CEO Sanjay Behl at the helm, textile major Raymond has managed to turn around four apparel brands, with double-digit growth posted for brands such as Color Plus and Raymond Premium Apparel. Brands which were facing de-growth such as Parx have bounced back, growing at 7 per cent, despite shutting down certain stores, even as acquired brands such as Color Plus have grown the fastest at 38 per cent compared with last year.

“There has been consolidation in operations and the supply chain, due to which operating margins have grown from 4-8 per cent. However, we are not exactly going to be bullish but ‘cautiously optimistic’ in the future,’’ said Sanjay Behl, CEO, Lifestyle Business, Raymond, speaking to Business Line .

Relocating facilities The company restructured its operations by relocating manufacturing facilities for brands such as Color Plus and revamping sales, distribution and supply chain functions.

Among branded apparel is Park Avenue, which is the largest with sales turnover at ₹250 crore, followed by Color Plus at ₹160 crore, Parx at ₹90 crore and Raymond Premium Apparel at ₹100 crore

Volumes Resisting sharp price hikes have always helped in garnering volumes. Last June, it took a 2-3 per cent price hike, which helped both the top-line and bottom-line of the company.

December last year was particularly bad with consumer spends slowing down. However, Raymond’s decision to advance its sale period to early January made up for the loss on volumes.

As Behl said, “There was slowdown in December post Diwali, with flat like-to-like sales growth at the Raymond stores. But the sale period was moved to early January, and there was cash generation which made up for the slowdown.’’

In the textile category, the introduction of a new brand in the economy segment called Makers, has helped in generating volumes. Going forward, Markers is expected to help consumers upgrade to the more premium Raymond brand.

“We expect new entrants into the Raymond’s portfolio from economy fabric brands like Makers which will pave the way for us,” added Behl. In the past nine months, Makers has grown by 15 per cent with a sales turnover of ₹75 crore.

Branded apparel Raymond may also extend Makers as branded apparel going forward. Ram Bhatnagar, Vice-President, Emerging Business, Raymond said, “Once Makers becomes a big brand, we may look at extending it to garments. Even exclusive branded stores are being planned for it.’’

While there would be continued focus on improving margins and efficiencies in the textiles and apparel business, Raymond is also evaluating ways to unlock value from its real estate assets.

Its land in Thane is yet to get monetised due to the depressed real estate market.

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