With a strategic shift towards expansion and diversification, Indian textiles to engineering conglomerate Raymond Group has emerged as a zero-debt entity set on growing its business across three key verticals. In a recent interview with Raymond Group CFO, Amit Agarwal, the company unveiled its ambitious plans to bolster its presence in the apparel sector while also venturing into real estate and engineering segments.
Raymond Group is gearing up to significantly increase its retail footprint by adding 400-500 stores in the next three years, targeting a total of 2,000 stores. The company boasts a solid revenue stream of approximately Rs 1,500 crore from its apparel division, which features renowned brands like Raymond Ready To Wear, Park Avenue, and ColorPlus.
Moreover, Raymond is eyeing a substantial capacity expansion in its production facilities, aiming to increase its output from 8 million to 11 million pieces over the next 18 months predominantly in Bengaluru and Ethiopia. The group is also making significant strides in the real estate sector, with a prime land parcel in Thane expected to yield a staggering Rs 25,000 crore in revenue over the coming years.
In addition to its real estate ventures in Thane, Raymond has embarked on joint development agreements for projects worth Rs 5,000 crore in Thane, Sion, and Mahim. The company anticipates that real estate ventures will contribute significantly to its overall revenue mix, to have 50% of its revenue coming from Thane projects.
On the engineering front, Raymond’s acquisition of Maini Precision Products (MPPL) in Bengaluru is nearing completion, positioning the group to venture into the aerospace and defence industries. The impending demerger of its lifestyle business signals further expansion prospects, with a planned listing in July.
Equipped with a substantial cash reserve of Rs 1,500 crore, Raymond Group remains open to strategic acquisitions and is exploring opportunities for international expansion outside the manufacturing sector. With a robust growth strategy in place, Raymond Group is poised to redefine its presence across key sectors and establish itself as a dominant player in the global market.
