raymond saga

raymond saga - Transcript

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the raymond saga from sheep s back to man s back

The Rs 1 500 crore Raymond Group is moving ahead in the 21st century in top gear as it sets an aggressive expansionist eye on not only the domestic market but also the global scene Meher Castelino reports
The Raymond saga charts the generations of one family that has brought to India a textile apparel and retail story that has moved from strength to strength over the decades as each scion of the Singhania family took over
From the visionary Kamlapat in 1920s to the adventurous Kailashpat in 1944 to the intellectual Gopalkrishna in 1952 the journey continued Then came the dashing Vijaypat in 1980 and now it is the Millennium man Gautam in the 21st century for Raymond Ltd a company that has pioneered the textile apparel and retail businesses in the country setting standards for others to follow
Therefore when Gautam Singhania chairman and managing director Raymond Ltd states that Raymond is the largest integrated textile company and this year they will be the largest textile company in the world it is a statement that stands on solid ground with performances to back it
We are so fully integrated that we can state From the sheep s back to the man s back I don t think there are many companies in the world which are so integrated that they actually manufacture worsted fabrics woollen linen and go to the extent of converting them into readymade garments suits and trousers Singhania states proudly
From making coarse woollen blankets and small quantities of low priced woollen fabrics in 1944 Raymond now makes the Super 220S the world s finest fabric retailing at Rs 1 05 lakh per suit length Added to its fabric base is the very impressive stable of men s RTW labels Park Avenue Parx Manzoni and Colorplus
Not satisfied with this mega portfolio Raymond spearheaded the pret designer retail revolution with Be a chain of stores that stocks the top Indian fashion labels at affordable prices Thus Raymond is now the market leader in three important categories textiles apparel and retailing making the company a fully integrated brand name in the business aimed at all age groups of customers
For the company there is a three pronged thrust into the domestic as well as international markets revolving around brand product and retail expansion All three are important We can t differentiate between them If the product has to be of top quality it must have the distribution to back it It must have solid brand equity and that is a very easy word to use brand equity but eventually a brand stands for much more than a product It stands for the way you deal on the shop floor the way you are treated by the store and many such things So each one of these categories is very very important emphasises Gautam Singhania
The Rs1 500 crore Raymond Group as always is moving ahead in the 21st century in top gear While most companies may hesitate to invest in new projects Raymond looks at the future with optimism The company is all set to start a new suit and formal trouser manufacturing unit in Bangalore with an annual capacity of 5 lakh suits and 10 lakh trousers in two phases at a total project cost of Rs 40 crore Phase one of the project will be operational by March 2004 and Phase II by September 2005
The company is also set to rev up a denimwear manufacturing facility at Bangalore with an annual capacity of 3 million garments At a total project cost of Rs 44 crore it will start operations by December 2004 In addition Raymond will expand its denim manufacturing capacity at Yavatmal in Maharashtra from 20 million metres per annum to 30 million metres per annum at a total project cost of Rs 127 core which will start by April 2005
Raymond style statements
Raymond has been responsible for several introductions in the suiting segment
1958 Terool the first wool blended yarn
1995 Superfine pure wool collection under the Lineage Line Super 100S to Super 140S
1996 Renaissance Collection made of Merino wool blended with polyester and specialty fibres Super 100S to Super 140S
1999 The Chairman s Collection of Super 1505 made from Merino Wool and Cashmere followed by Super 160S to Super 190S
2002 Super 200S 13 6 microns fabric under the Chairman s Collection
2003 Applause Woolrich Home Washable suiting
2003 Super 210S 13 2 micron fabric under the Chairman s Collection
2004 Super 220S 12 7 microns fabric under the Chairman s Collection in classic designs of Chalk stripes Elegant stripes and fine Herringbones in three colours navy charcoal and worsted grey
2004 CoolPlus the only wool blended fabric with CoolPlus fibres with special sweat absorbent fabric available in plains twills and micros
Although the Raymond brands have a strong presence in the Middle East Bangladesh Sri Lanka and Nepal the company prefers to consolidate its position before venturing ahead for fresher pastures
We would like to strengthen the network in these areas as there is a good potential in these markets In the Middle East we have Raymond Retail shops which retail a combination of fabrics and garments We also have standalone stores for ColorPlus and Be In future we will look at expansion of other brands in our portfolio The first phase is to look at individual brands and how to position them in the existing country The subsequent stage will be going into markets like Singapore and Malaysia and maybe Europe We are looking at internationalising business which will need setting up of logistics and distribution systems in Europe Our distribution has to be robust for which we need to really invest and create a model and then move on says Pradeep Bhandari deputy group president and wholetime director Raymond Ltd
But while Raymond is increasing its product portfolio and aggressively going into the retail business Singhania is firm when he emphasises We will not retail non Raymond brands in our store We should own the brand
Singhania who has been the young dynamic driving force for Raymond since September 2000 when he took over the reins of the company has been instrumental to a certain extent in bringing in youthfulness into the business with younger people and more fashion and design elements This is visible in the products and advertising but Singhania is modest about his achievements I have not changed the image of the company I have just continued the direction my father had visualised that Raymond should be a global brand and we are really moving in that direction
But going global does not mean adding on new products like kids women s and sportswear lingerie or turning into a retail powerhouse like Gap At present we are focussed in the menswear market Be is our initiative into the designerwear market featuring womenswear As that market grows we can look at different ways of expansion Kidswear is also an opportunity but right now we have our hands full with our priorities confirms Singhania
Nabankur Gupta group president and wholetime director Raymond Ltd goes on to add We are looking at possibly women s and kid s wear but today we are primarily a menswear company Whether we take a green field route or an acquisition route will depend on what opportunities come our way
The company is sure of the path it wants to take Although Raymond at times has a higher recall value than its apparel brands there is no plan to launch Raymond as a mega fashion brand for clothing textiles footwear accessories fragrance cosmetics and toiletries
The Raymond brand has its manifestation It is a corporate umbrella brand for a large number of products and services we offer and it goes beyond textiles The only area where we use it as a brand or product is textile In that sense Raymond remains a fabric brand It has got no masculinity or femininity Hence its suiting fabrics are used primarily for men but also women for exports The Raymond brand connotes corporate entity by its product specific to fabrics explains Gupta
He however feels that Raymond as a brand for apparel at the moment really doesn t fit in because We have different categories of products and brands No doubt ultimately it is the big picture that Raymond has which casts an assurance of creditability to its customers that this product is from the house of Raymond Therefore it has a huge offering in terms of surety confidence and above all an aspiration that when you buy from Raymond it is really top class
Franchising has played a major part in the Raymond retail network Gupta reveals We have some company shops but most are franchisee shops who are major stock holders in the company not only in India but Raymond shops abroad We will pursue the same path in future when we are looking at malls
Raymond may be a multicrore company today but it faces cut throat competition in the textiles apparel and exports segments Yet the challenges and the saturation in the apparel market do not faze the company with foreign and Indian players nudging each other for a piece of the pie
We target customers We don t target competition We are targeting customers who in the past bought shirts of other brands We make an offering through our shirts which make an application through different usage We are aware of the competition we take cognizance of their presence but our target is always the customer reveals Gupta
He also looks at the overcrowded market with new vision The word saturation is a misnomer It is a dynamic situation where demand and supply are chasing each other from time to time There could be saturation in terms of the overall market size but we have to divide the market into segments If we look at product market segments I think there is a lot of scope for brands like ours to do better The demands in these segments are rising There is a commodity market which is very large and we can play a game where there is a very large high end or medium end market We will participate there since that market is growing at a phenomenal rate observes Gupta
Bhandari continues We have operated in competitive markets and built brands Wherever there were gaps in meeting the customers requirements we will acquire brands Wherever there is an opportunity and it can fit into our overall strategy we will continue to do so
And as the Raymond saga moves on it is necessary to look at each of the three segments textiles apparel and retail to learn how the company has managed to stay ahead of the competition
Suiting the Indian male
Think suiting and the first name that comes to mind is Raymond which is synonymous with high quality suits or suit lengths It is now mandatory for bridegrooms to have Raymond suits in their trousseaux A journey down memory lane traces the path taken in different fashion segments when Raymond Ltd was incorporated in 1925 with modest beginnings Today it has turned into India s leading producer of worsted suiting fabric The company has a 60 per cent market share in India and a capacity of 25 million metres of wool and wool blended fabrics with three plants in Maharashtra and Madhya Pradesh Exporting to more than 55 countries including the US Canada Europe Japan and the Middle East Raymond s success is due to its efficient network comprising 20 000 MBOs and over 310 exclusive retail shops in more than 135 cities and 290 outlets in India and 20 abroad
Pioneering fabrics has been easy for Raymond starting with the polywool blend in 1959 to the superfine Wool Collections like the Lineage line 1995 the Renaissance Collection 1996 and The Chairman Collection 1999 Its range of Super fine wool from 80S to 220S count and blending it with superfine polyester and other specialty fabrics like Cashmere Angora Alpaca pure silk linen etc has created the finest suiting The Indian male can choose from a mindboggling variety of over 4 800 SKUs in over 20 000 patterns
Raymond scores over everybody else as it s a complete integrated company Our understanding of fabrics is very good We also understand the design elements that go into fabrics Our story starts from the yarn and we do our business from basic raw material onwards We are paranoid about quality Nothing which is below world class is acceptable to us be it a handkerchief or an expensive suit like Super 220S which is the finest fabric in the world declares Gupta
Moving with the times Raymond Ltd recently invested over Rs 200 crore in a major expansion programme with Rs 84 crore for setting up two new manufacturing units for apparel and denimwear in Bangalore Rs 127 crore has been reserved for capacity expansion of its existing denim manufacturing facility at Yavatmal Maharashtra
On a winning streak
Awards won during 2003
IFA Most Admired Trouser Brand of the Year Park Avenue
Most Admired Suit Brand of the Year Park Avenue
Most Admired Apparel Company of the Year Raymond Apparel Ltd
CMAI Largest Brand of the Year Park Avenue
Menswear Brand of the Year Park Avenue
DFU S Inside Fashion Brand Awards
Menswear Formal Trouser of the Year Park Avenue
Menswear Suit Brand of the year Park Avenue
Menswear Casual Shirt brand of the year Parx
Business World Most Respected Company Readymade and Textile
Keeping in step with the casualwear evolution in India and across the globe the denim division with 20 million metre capacity has now been to increased to 30 million metres This makes Raymond among the top three denim producers in India with exports to 30 countries and used by labels like Levis Gap Zara and store brands like Carrefour Next etc
Denim is a very important element of clothes in the world from commodity to top end fashion labels We don t participate in the mass market We are primarily in the middle to top most end We make boutique denim and have the largest collection of varieties to offer to our customer We supply high quality ring denim to some of the best designer labels in the world We have taken denim into a class apart as we have done with worsted fabrics We will grow this business further but always in high class quality denim With January 2005 coming in and quotas abolished we have direct access to the labels Therefore our growth will stem from the fabric end when we will continue supply of fabrics to some labels but a large number of them now want the fabric converted and given to them as a package of the product enlightens Gupta