Raymond plans to increase its capacity by a third and invest around Rs. 200 crore. According to chief financial officer Amit Agarwal, this will propel the clothing manufacturer and store to the third position in the global suit manufacturing rankings.
“In the garmenting business we are putting a capex of almost Rs. 200 crore, expanding the lines and capacity by one third, which will take us to the third-largest suit maker in the world,” Agarwal said.
Additionally, he mentioned that the business has demonstrated strong growth and an improvement in profitability, both of which will support future revenue development. Agarwal added that because of inflationary pressures, retail demand in general and for weddings has been weaker in FY ’24.
“Overall as business, we are quite satisfied. The retail market has been a bit weak in FY ’24, but we have created a platform that will help us achieve our target once the market is back on track,” he said.
But according to Agarwal, the company’s branded apparel segment grew by more than 20 per cent annually, demonstrating the brand’s worth. Agarwal attributed the fourth quarter’s de-growth in the apparel segment to the Red Sea issue, which has hampered shipments. The Made in India and China plus one policy has helped the company build a healthy order book. “The China plus one policy is helping Indian garment makers significantly,” he said.
On 3rd May, the company said that its consolidated net profit for the quarter that ended on 31st March increased by 18 per cent to Rs. 229 crore. According to an exchange filing, its income for the three-month period was Rs. 2,688 crore as opposed to Rs. 2,192 crore during the same time the previous year.
