By entering into joint venture projects and joint development agreements with other landowners, Raymond plans to grow its real estate industry. The business also intends to capitalise on its huge 60-acre land bank in Thane, Mumbai.
The Raymond Group will concentrate on real estate through Raymond and the branded apparel company under Raymond Consumer Care, which is set for listing, after selling its FMCG business to Godrej Consumer Products in May.
Raymond Realty will continue to be a core business going forward, actively seeking new projects and JDAs in the Mumbai Metropolitan Region (MMR) because to its tremendous growth potential, according to Gautam Singhania, Chairman and Managing Director, in the company’s F23 annual report.
The company currently has three projects under construction in Thane, and last year’s reported bookings from these endeavours totaled Rs 16 billion. Eighty percent of the inventory for two projects has already been sold, and twenty five percent of the inventory for the most recent project has been sold. The business expects this third project to bring in a total of Rs 14 billion in income.
Real estate generated Rs 11.15 billion of Raymond Ltd’s Rs 83.37 billion in income, a noteworthy 58 percent rise from the prior year. Additionally, the real estate sector recorded a strong EBITDA margin of 25.7% in FY23. The business plans to broaden its real estate operations in the MMR region beyond Thane.
The MMR real estate industry is currently dominated by Godrej Properties, Macrotech Developers, Mahindra Lifespaces, Birla Estates, and L&T Realty, with new players attempting to make their impact.
The majority of the Raymond Group’s revenue—or 77% of the total—comes from branded textile, apparel, garments, and high-value cotton shirting. With its newest addition, “ethnix,” alongside established brands like “Raymond Fine Fabrics,” “Raymond Ready to Wear,” “Park Avenue,” “Colour Plus,” and “Parx,” the company has been notably swiftly ramping up in the ethnic wear category.
Raymond Ltd expects to become debt-free after selling its FMCG business and have a surplus of Rs 15 billion available for expansion capital. The business is currently coming up with its capital allocation plan.
The company intends to open about 200 retail locations over the next 12 to 18 months, 100 of which will be devoted to its ethnic wear brand and the rest to other garment companies. The company plans to construct flagship stores in well-known areas, but the majority of store additions will be made using the franchise model
The value of Raymond Ltd. has increased more than six times over the last ten years, and its shares have almost doubled during the last 52 weeks.
