Raymond Apparel Limited

https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=23619126
Raymond Apparel Ltd. manufactures and markets apparel under the brands Raymond (Ready-To-Wear), Park Avenue,
Park Avenue Woman, ColorPlus, Parx, and Notting Hill. The company offers men's shirts, suits, trousers, jackets, ties,
and accessories, such as cufflinks, belts, socks, shoes, and leather bags; casuals; men's formal wear; kidswear; and
women's wear. It offers its products through exclusive brand stores, retail outlets, and multi-brand outlets in India and
the Middle East. The company was founded in 1969 and is based in Mumbai, India. Raymond Apparel Ltd. operates
as a subsidiary of Raymond Limited.

http://www.indiantextilemagazine.in/corporate-news/raymond-reimagined-journey-continues-unabated/

- June 7,2018

New Ethiopian and Amaravati plants to fuel future growth

Raymond Ltd. is indeed passing through an exciting growth phase. The company has unleashed a series of initiatives
which would strengthen its business globally and in the domestic market. In order to be globally price-competitive for
the export market, Raymond established a garmenting plant in Ethiopia as a strategic move to ensure duty-free
access to key export markets such as the US and Europe. This is an important aspect of an integrated strategy. It
will prove to be a catalyst for a new wave of growth for the company.

In a bid to augment growth of linen as a category, the Raymond Group inaugurated its manufacturing facility at
Amravati in Maharashtra inspired by the ‘Make in India’ initiative. This facility will give the much-needed
boost for linen manufacturing in the country and help it emerge as a preferred provider of linen in global markets.

Raymond reported growth in revenue from operations of 6.71% over the previous year. At stand-alone level, revenue
from operations stood at Rs. 3,011.56 crores compared with Rs. 2,822.18 crores in the previous year. The consolidated
revenue from operations for FY 2018 was Rs. 5,906.41 crores (previous year: Rs. 5,391.32 crores), registering a
growth of 9.55%.

Raymond commissioned a state-of-the-art linen manufacturing unit in Amravati in December 2017, within a
record span of 18 months of signing the MoU. In the next phase, we plan to set up a world-class educational
institution and an affordable housing facility in the vicinity of the Amravati plant, thereby providing a stable
foundation for sustainable development and prosperity of the Vidarbha region in Maharashtra

Driven by Innovation

Inspired by the rapidly evolving lifestyle of customers, Raymond continues to reimagine its products, services and
business models. To augment its internal organisational capabilities in areas of product technology, design and
manufacturing, the company now has a stable platform to open-source and crowd-source any of these
capabilities across the world. This new capability coupled with an accelerated thrust on product innovation, is paving
the way for many ‘World-class Products’ and ‘World Firsts’ from Raymond.

Product innovations in our apparel portfolio ranged from the launch of Yoga Denims to Reversible Shirts to
LightWeight Sneakers to 3D-printed Accessories. Beyond products, there were a series of service innovations like
express delivery in custom tailoring, concierge service in MTM products and zero interest financing facility for
high value purchases. We believe that continuous innovation across the value chain will unlock disruptive growth
for all our businesses

Reaching to the New India

With technology conquering physical barriers at breakneck speed and market places becoming increasingly flatter,
Raymond is reaching out to newer markets at an equally scorching pace – both in physical and digital formats.
The company believes that experiential shopping for fabric and apparel, coupled with bespoke tailoring and fashion
advisory services, will always be in vogue.

Inspired by this thought, Raymond has embarked upon a journey to gratify aspirations of its consumers in Tier III,
IV, V and VI towns by launching an asset light franchise store model Mini TRS (The Raymond Shop). During
the last fiscal, over 90 Mini TRS were rolled out, in addition to renovating 41 of its existing Raymond stores and
launching 80 new exclusive brand stores for Raymond, Park Avenue, Parx and Color Plus. This scale of new
retail roll-out by Raymond in FY 2017-18 marks the highest achieved by any brand ever in the industry. The company
plans to cover 300 towns by 2020.

Building sustainable platforms and ecosystem

A robust, large and productive tailoring ecosystem is one the most critical enablers for the sustained growth of the
fabric business. The company plans to create an effective outreach programme for over one lakh tailors in the
country and double their income by 2020. This programme primarily entails the upskilling existing tailors,
upgrading technology, facilitating microfinance and providing employability on a sustained basis. During the
last fiscal, Raymond set up the world’s first tailoring ‘Centre of Excellence’, launched 25 state-of-the-art tailoring
hubs, trained 20,000 tailors and logged over 100,000 hours of formal training.

Leading a Movement called Khadi

Retail - http://www.raymond.in/ourbusiness?subcat=292

Being at the helm of Textile revolution in India, Raymond was a pioneer in organized retail way
back in 1958. With the launch of its first exclusive retail showroom, at King's Corner, in Ballard
Estate (Mumbai), Raymond’s expansive retail presence has been the cornerstone of the brand’s
success. Raymond has an indomitable retail presence with over 2 million square feet of retail space
spread across its 1100+ stores spread in over 380+ cities & towns, and is growi ng steadfastly.
Today, Raymond Group is amongst the three leading branded apparel players in the menswear
industry with a portfolio of four Power Brands - Raymond Ready-to-wear (RRTW), Park Avenue
(PA), Color Plus (CP) and Parx. Over the last few years, there has been a rapid expansion – across
all channels including 257 Exclusive Brand Outlets (EBOs), 3,300 Multi Brand Outlets (MBOs)
(through distributor network), 800 Large Format Store (LFS) chains and leading online portals.
Marking its foray in the ecommerce space, Raymond launched raymondnext.com - a one-stop
fashion solution for all brands under the Raymond umbrella.

Denim - The business’s fabric manufacturing facilities are located in Yavatmal (Maharashtra)
and Romania (Europe) and have an aggregated annual manufacturing capacity of 47 million
metres. Having earned the respect of leading brands in domestic as well as international markets,
Raymond UCO Denim meets the growing demands of fashion -conscious customers.
Raymond To Continue Its Growth Journey With #HarSheharMeinRaymond Motto

https://www.franchiseindia.com/content/raymond-to-continue-its-growth-journey-with-
harsheharmeinraymond-motto.12009

http://www.raymond.in/milestone?subcat=131#tabs-2

- A Greenfield unit was set up in Kolhapur in 2006 to produce high value cotton shirting
- World’s largest integrated composite Textile mill was set up Vapi in 2006 to produce finest
quality worsted fabric
- The year 2008 witnessed the launch of Readymade garments under the Raymo nd brand
name now known as Raymond Ready to Wear
- In 2011, Raymond is the first textile company in the world to produce the Super 250s fabric.
and the first in India to produce innovative fabrics from bamboo fibre, stain resistant and
UV resistant fabrics and many such innovations.
- In 2014, opened the first EBO for Raymond Ready to Wear
- Launched Technosmart- Smartest fabric in the World

http://www.raymond.in/sites/default/files/Q3FY18%20Result%20Update%20by%20Stewart%20%26%2
0Mackertich.pdf

- Business initiatives undertaken during the quarter

- Amravati linen facility has been commissioned and is expected to produce 1,200 tons of
world-class linen yarns and 4.8 million meters of linen and blended fabrics per annum
- The company is looking at 75% capacity utilization next year and at full capacity, it is
expected to generate revenue of INR200-250 crores
- In line with stated asset light expansion approach in the core textile and apparel business,
the Company opened 17 mini-TRS stores under the franchisee route in tier 3, 4 and 5 cities
and overall opened 53 mini-TRS stores during the course of the year
- In line with stated strategy facilitating quality tailoring services, they opened 20 franchise -
based tailoring hubs till date and is targeting to take the count to 25 by March end

Raymond Reimagined – http://www.raymond.in/reimagined

The transformation journey at Raymond is conceptualised to create a new -age organisation that is
geared to outpace competitors and drive higher growth and profitability. Adapting an asset-light
approach with a strong focus on ROCE will enable us to not just survive but thrive in this
volatile marketplace. Since inception, Raymond has been heralded for creating numerous
pioneering innovations in turn creating a leadership position for itself in the market. As the scope
of business expanded over the years, there was a need felt for divestment of ownership and
management to ensure scalability.

Strengthening our manufacturing prowess by establishing Greenfield manufacturing facility in

Amravati region in Maharashtra is a reaffirmation of our commitment to ‘Make in India’ initiative.
In our endeavour to Skill India by reviving tailoring as a profession reinstates our efforts to create
an inclusive society.

ANNUAL REPORT 2018 – 1 9

http://www.raymond.in/sites/default/files/Annual%20Report.pdf

In a bid to encourage inclusive growth, Raymond continues to enrich the tailoring ecosystem, providing a
platform for skill development in the textiles and apparel manufacturing industry by rapidly adding tailoring
hubs across the country. In addition, we created over 3 million hours of employability for Khadi artisans in
more than 75 clusters across 16 states in India.

Company Overview -
http://www.raymond.in/sites/default/files/Initiating%20Coverage%20by%20Stewart%20%26%20Macke
rtich.pdf

Raymond Ltd, incorporated in 1925, is one of the leading names in the fabric industry in India. It is a
leading Indian Lifestyle, Textile and Branded Apparel Company, along with a minor interest in Engineering
(Files, Power Tools, AutoComponents) and FMCG segments. It is one of the largest integrated
manufacturers of worsted fabric in the world. The company has a diverse product range of nearly 20000
designs to suit every age, occasion and style. Currently, the products are exported to over 55 countries
including USA, Canada, Europe, Japan and the Middle East where the US contributes 30 percent, Europe
25 percent and Japan 20 percent. Exports contribute 20 percent of total revenue. Rest of the revenue is
contributed by the domestic market. The company has been expanding its dealership network into smaller
cities and towns. As on September 30, 2017, the company has 1142 stores, 54 new stores were opened
and 12 non-performing stores were closed during the quarter.

The Company has mainly six Operational segment

Branded Textiles is the flagship business of the Raymond Group with a rich manufacturing heritage
comprising world-class suiting and shirting fabrics. It has manufacturing plants in Vapi (Gujarat),
Chhindwara (Madhya Pradesh) and Jalgaon (Mumbai), having an aggregate manufacturing capacity of 38
million metres per annum.

Branded Apparel: It is one of the three leading branded apparel players in the menswear segment
comprising its portfolio of four power brands–Raymond RTW, Park Avenue, Color Plus and Parx.
Garmenting: The Raymond Group is a white label-integrated supplier to leading international brands. It
comprises manufacturing of mainly high-end suits, jackets, trousers, and shirts, exported to USA, Europe
and Japan.

High Value Cotton Shirting: Raymond manufactures one of the finest shirting fabrics in India, marked by
innovative designs and finishes. It possesses 26 million metres of capacity in Kolhapur (Maharashtra). In
December 2017, the company opened a linen plant with a capacity of 4.8 million metres in Amravati to
boost sales of the segment.

Auto Components: This segment comprises the manufacturing of Ring Gears, Flexplates and Water pump
bearings for Automotive, Industrial and Power generations, Agricultural and marine applications. The
aggregate annual manufacturing capacity is 4.8 million pieces of ring gears, 0.4 million pieces of flexplates
and 5 million pieces of shaft bearings. BMW, Honda, Volkswagon, etc. are its marquee clients.

Tools & Hardware: This segment comprises of manufacturing of steel files and cutting tools with a
manufacturing capacity of 71 million pieces and 21 million pieces respectively per annum.

FMCG: In August 2017, Raymond has acquired full control of the Kamasutra Brand after buying it from the
JK Ansells stake. The company intends to expand and revitalize its men’s grooming segment under ‘One
Park Avenue’. It will help in strengthening its FMCG portfolio both nationally and internationally.
Shifting its focus from Non-Core businesses to Core business: Since 2000, Raymond has taken the
strategic decision of restructuring the Group and closed many noncore businesses including its Cement,
Steel and Synthetics units to focus on its Suiting, Shirting and Apparel business. It has made them the
largest and most integrated producer of worsted suiting fabrics in India. The Company did deep-dive
research and outsourced every non-core activity. The main idea is to focus on the core business and
product development, brand building and enhancement of customer experience, at the same time
ensuring its debt reduction. Net debt and return ratios of the company are improving which is resulting
in higher efficiency and effective supply chain management.

Focusing on upscale and brand growth: Raymond recently associated with Khadi Village Industries
Commission (KVIC ) to introduce a new line of clothing under the 'Khadi by Raymond'. It will uplift Khadi
from common fabric to fashion fabric which goes with PM Modi's initiatives to make khadi into fashion
fabric. With value addition, premium khadi products will change the perception. Patanjali is entering the
textile market as the Swadeshi company. Raymond is looking for some synergy if both of their vision
matches. The company is also focusing on upscale and growth of brands and is receiving proposals from
global brands and fashion retailers for strategic partnerships

Foraying into Omni-channel: With the changing trends in consumer buying behaviour and gains from
the rapid growth of e-commerce as a sales channel, it revamped and launched ‘www.raymondnext.com’
as a one-stop fashion solution for all brands under the Raymond umbrella. The company is setting up
processes to being an omnichannel player that will provide the customer with a seamless shopping
experience both offline as well as online.