Raymond's Singhania Bets on Apparel for Post-Demerger Growth

Raymond Lifestyle's executive chairman, Gautam Hari Singhania, expects India's consumption to strengthen in the second half of the year. He told ET Retail that apparel, exports, and retail expansion are the key growth drivers for the company after its recent demerger.

Singhania is optimistic about the festive season despite global geopolitical uncertainties. He stated that India's strong domestic consumption provides a key buffer against external shocks. "Even today, our companies are very, very strong because we have very strong domestic consumption," he said. He cautioned, however, that geopolitical disruptions remain outside corporate control.

Leadership and Governance Overhaul

The demerger has triggered a significant transformation in Raymond's leadership and governance. Singhania described a "massive management change," with the group hiring around 16 to 18 people at leadership levels this year. He framed this as a full transformational change aimed at bringing in professional management and new board members. The move, he argued, has also helped address the massive holding company discount associated with the old conglomerate structure.

Apparel Named as Primary Growth Bet

While fabrics remain Raymond's legacy strength, Singhania explicitly identified apparel as the company's biggest future opportunity. Fabrics is our biggest legacy bet. Moving forward, our biggest bet is apparel, he stated. The company's lifestyle portfolio is broad, spanning multiple categories.

The company's broader vision focuses on shareholder value through deepening the fabric business, expanding apparel, increasing retail footprint, and scaling newer categories.

Export Growth Fueled by Trade Pacts

Singhania sees India's network of free-trade agreements and the China+1 strategy creating larger opportunities. He cited 33 signed FTAs as opening new markets, particularly in Europe. Raymond Lifestyle is currently producing about 7.5 million pieces annually, with capacity expected to rise to 10 million pieces shortly. Exports currently account for 12 to 15 percent of the business, with the US remaining its largest market.

Retail Expansion Reaches Tier-10 Towns

Raymond's retail expansion is extending deep into India's smaller cities. Singhania said the company is already present in tier-10 markets, which he defined as towns with less than 50,000 people. The brand is now in over 600 cities. As India's infrastructure improves, he expects these smaller cities to become increasingly important consumption hubs.

On premiumisation, Singhania said Raymond focuses on delivering value at every price point, offering products from 300 rupees per metre to 10 lakh rupees per metre. We are premium at every level, he concluded.