Raymond To Dress Up Park Avenue Brand

Raymond Apparel Ltd, a wholly owned arm of Raymond Ltd, would promote the flagship Park Avenue brand more vigorously to take on the other leading readymade brand in the country.

The company would increase the adspend considerably to add more muscle to the brand. "We did not advertise the Park Avenue brand adequately earlier, but off late this has begun. We want to work on the brand to position it around the Raymond brand which has a stronger presence," Nabankur Gupta, group president and wholetime director of Raymond Ltd, said.

The company has earmarked Rs 35-40 crore for investment in the readymade garments business. Gupta noted that while improving the profile of the existing brands is being attempted, acquisition of some other brands is also on cards. "We are looking for good opportunities and if any plant adds value, the company was opens to acquisitions," Gupta added.

 

The company has already appointed a foreign designer of repute who is working closely with Raymond to develop new range of shirts under the Park Avenue brand.

"She works with two to three weeks every two months and designs for us. Also she works for developing suits and exportable garments," Gupta added.

Raymond has two readymade brands, Park Avenue and Parx. The latter is a semi-formal range of cottons and denims. Taken together, the two brands have a total turnover of Rs 250 crore.

In comparison, Grasim which owns brands such as Allen Solly, Louis Philip, Van Heusen and Peter England enjoys much higher sales volume. Gupta, however, claimed that individually Park Avenue is bigger than any one of the brands in competition.

The company now has a large war-chest for battling it out in the readymade market after selling its cement and steel division. Owing to the comfortable funds position, acquisitions are being studied closely.

Gupta said Raymond is sitting pretty with over Rs 550 crore in its kitty. It has acquired a plant in Portugal recently as part of its overseas expansion plan.

"Portugal and Spain have become hotspots in terms of garment business for its cultural affinity to US and European Union (EU) markets. They offer cheap cost of labour," Gupta added.

The Portugal plant, called Regency, has a capacity to make 500 suits a day and caters to a food chain and airlines crew. The acquisition was done at one go.

The company has entered into the designerwear business with its BE! brand. This also marks Raymond's first venture into ladieswear. To sell the range, the company was aiming at opening 50 new showrooms in two years and it plans to achieve a turnover of Rs 30 crore from this range.

JK Helen Curtis to be refurbished

Raymond will be focusing more on the J K Helen Curtis range of cosmetics and men's toiletries to boost the business.

J K Helen Curtis brands such as Park Avenue and Premium have not done too well of late. Gupta accepted that Raymond did not give adequate focus to them.

"There is a need to spruce up those brands and give more thrust to them. We will take more marketing initiatives to bolster their presence. We may bring in few more products," Gupta added.

He, however, ruled out any fresh investment in the business. This segment has not been consolidated within Raymond Ltd and company wants it to continue with the arrangement. J K Helen Curtis clocked a turnover of Rs 50 crore last year.