Raymond will extend the product range for new markets and is working on customer acquisition.
Credit: raymond.in
New Delhi: Raymond is expanding its garmenting capacity by one-third, which will make it the third-largest suit maker in the world and help capitalise the China plus one strategy in the global market.
The company, which is including women’s tailoring and high-value tailored casual wear and hybrids, will extend the product range for new markets and is working on customer acquisition.
“The China+1 strategy is playing to our advantage, leading to stronger business relationships with existing customers and presenting multiple opportunities for new markets and customer acquisition,” said the latest annual report of Raymond.
This also aligns perfectly with the government’s Make in India initiative, said Chairman and Managing Director Gautam Hari Singhania addressing the shareholders of the company.
“As India continues to be a preferred sourcing destination, the China plus one strategy is playing its part,” he said adding Raymond is expanding its garmenting capacity by a third of its current level.
When the expanded capacity is fully commissioned, Raymond will become the third-largest suit maker in the world, Singhania added.
This expansion not only strengthens Raymond’s global presence but also boosts domestic manufacturing capabilities, said its CFO Amit Agarwal.
Raymond’s garmenting unit is a white-label manufacturer and an integrated supplier of high-value clothing products to leading international brands.
The segment, which had a revenue of Rs 1,139 crore in FY24 mainly exports to the US, Europe and Japan. In this, export contributed 95 per cent.
Its garmenting unit facilities produce range of men's wear, including suits, blazers, jackets, trousers, denim and shirts.
Raymond expects a “strong demand” for higher-value garmenting categories, such as formal jackets, trousers and shirts.
“High demand from the US, UK and European markets through efficient supply chain management and line capacity expansion in Indian and Ethiopian facilities is expected to drive the segment’s growth,” it said.
Raymond has capacity to produce 7.5 million pieces of jackets, trousers & shirts in India and 3.2 million in Ethiopia, the report added.