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Raymond eyes 5% of branded apparel business from khadi, roll-out in October

Firms targets Rs 60-70 cr business from segment, will source 400,000 metres from KVIC clusters

Vinay Umarji  |  Ahmedabad 

khadi, clothes, garment
.Khadi garments. Representative image

Planning a retail roll out in October this year, Raymond is expecting a five per cent revenue share in its Rs 1,200 crore-plus apparel business to come from products.  

According to Gaurav Mahajan, President-Apparel Business, Raymond Ltd, while the company has formally announced its foray into khadi, it is planning a retail roll-out of the product in October.  

"We hope to roll out products under the brand by October this year.  We hope to do a business of Rs 60-70 crore from this year. While in the first phase we will focus on domestic sales, in the second phase we have the intention to sell apparel internationally," Mahajan told Business Standard.

Of the total branded apparel revenue of Rs 1,270 crore, the company's Park Avenue brand generates Rs 593 crore revenue, followed by ColorPlus at Rs 275 crore, at Rs 225 crore, and Parx at Rs 173 crore.

Weaving branded khadi
Plans retail roll out of branded apparel by October
Products to hit initially at Raymond's Ready to Wear stores
Plans to source 400,000 metres of through KVIC clusters
Eyes Rs 60-70 crore of business from branded this year
Intends to export branded in second phase
The company has a range of products in including suits, shirts, western wear and sherwani, among others. Raymond 's design team has been working closely with weavers across the country under Village Industries Commission (KVIC).

Eventually, Raymond would be sourcing around 400,000 metres of from KVIC clusters. The company is expected to create three million man hours of employment for weavers through its retail venture.

There are around 25 weaving clusters under KVIC where the handwoven fabric is sold at a price range of anywhere between Rs 150 per metre and Rs 1000 per metre depending on variety.

"There is a lot of design intervention being done from our side in collaboration with weavers.  We are expecting to do a business of Rs 60-70 crore from branded this year. In the first phase, the roll out will be in th domestic market through our The Raymond Shop and stores and then later through other stores including (MBOs). In the second phase, we intend to sell branded internationally," said Mahajan.

Raymond has in all 1080 stores across all formats including exclusive branded outlets (EBOs) and flagship The Raymond Stores (TRS) as on March 31, 2017 across 400 towns.  Of these, the company has 714 The Raymond Shops, 28 EBOs, 135 ColorPlus EBOs, 82 Park Avenue EBOs, 60 Raymond MTM EBO and 12 Parx EBO.

In addition to this the company has 49 overseas stores across Bahrain, Bangladesh, Pakistan, Sri Lanka, Nepal, Oman, Saudi Arabia and UAE.

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