Shaping A Stronger Tomorrow
Gautam Hari Singhania
Chairman and Managing Director
The emergence of a new world order seems palpable with geopolitical shifts in a bid toevaluate lucrative economic alternatives which shall define the coming decades for theglobal economy.
The pandemic followed by the ongoing war have both been emotional and economicdampeners that have divided the world and contributed to inflationary pressures and risingcommodity prices. Imbibing a spirit of resilience entrepreneurship and agility henceassume a critical role especially in India when the country is currently the fifth largestcontributor to world market cap following US
China Japan and Hong Kong.
In spite of the headwinds India is well-poised for steady progress and is increasinglymaking rapid strides with numerous global names considering our nation as a worthymanufacturing contender as opposed to China. Indias recent entry in Indo-PacificEconomic Framework (IPEF) along with 12 member nations has been a pivotal move pegged toboost our bilateral trade relationships and propel the region as an engine for globaleconomic growth.
Focusing on Fundamentals
FY 21-22 closed on a high note for us with the group recording the highest
EBITDA ever and highest Net Profit on a consolidated basis in the last 10 years. Ourstrategy to focus on the core and recalibrate the fundamental metrics of each businesssuch as revenue cost and working capital have reaped rich dividends for the
Raymond Group. Sustaining our focus on cost optimisation and significant reduction inour operating costs by
Rs.453 Crores as compared to pre-COVID levels of FY19 -20 was critical for ourbusiness. The profitability and working capital management have helped in generating freecash flows thereby reducing our debts drastically.
During the course of the year there were key affirmative actions taken for ourbusiness that have laid a strong foundation in shaping a stronger tomorrow for Raymond.
New Dimensions of Retail
Retailing in the post-pandemic world has thrown open new avenues for consumers tointeract and shop. While physical retail will continue to thrive in India the digitalworld and social commerce is rapidly surging in India. This is evident by the fact thatour revenues from online marketplaces continue to grow steadily and we are currentlydeploying Intelligence and Machine Learning capabilities to also create digital fronts forour consumers. Our Brick & Mortar stores are doing well with consumers returning backto the stores to shop for the latest styles in office wear or make a big ticket purchasefor weddings. Interestingly we have had a record number of weddings in the last quarterof FY21-22 wherein we witnessed significant increase in our Average Transaction Values.Another new emerging opportunity is the ethnic wear space wherein we are making a rapidforay by opening up new stores for our brand Ethnix by Raymond. Our refreshing new take onethnic wear crafted from the finest quality fabrics are gaining more popularity as we opennew doors to take the brand to newer markets.
The Towering Heights
Raymond Realty - our new business - has been scaling greater heights of success. Ourmaiden project TenX has made steady progress in terms of sales and the slated for apossession in December
2022 well ahead by two years of RERA timelines. This is rarely witnessed in the realestate sector in India and our fast paced construction activity driven by ourmanufacturing mindset is the key differentiator to achieve this. Owning a home is still adistant dream for millions of Indians and buying real estate at an affordable price pointin Mumbai and MMR (Mumbai Metropolitan region) is becoming increasingly difficult. I feelincredibly proud of my team and of the enormous trust of our buyers which made this dreampossible. Our second project The Address by GS a premium township offeringmainly 3 and 4 BHKs was launched during the year. In addition to development of our Thaneland the business is also evaluating numerous options through Joint Development Agreementwithout land acquisition.
Re-org for Revving Up the Future
The year 2021 was a milestone year that witnessed the approval by the Board ofDirectors for the subsidiarisation of Raymond Realty business into wholly-ownedsubsidiary. A new Company by the name of TenX Realty Ltd has been incorporated as astep-down subsidiary of Raymond Ltd to develop real estate business for development /jointdevelopment of land and properties in line with its aspiration to expand beyond Thaneregion.
Additionally the Board approved the consolidation of the Tools & Hardware and AutoComponents Businesses into JK Files. The consolidation of these businesses that work in aunified fashion under JK files & Engineering Ltd is showcasing exemplary performanceand is likely to derive benefit through synergies. Last but not the least theconsolidation of B2C business by transfer of apparel business from
Raymond Apparel Ltd to the parent company Raymond Ltd which will bring all majorapparel brands including Park Avenue Colorplus Parx and Ethnix by Raymond into RaymondLtd.
Primed for Growth
As I conclude I believe that the contours of the world are altering with power centremaking a gradual shift towards Asia. The upheaval caused by the pandemic has been bafflingfor many nations. However India continues to allure with a promising talent pool strongdomestic economy resilient supply chains and the spirit of Atmanirbharta while spreadingits wings to achieve the global dream of being an ideal manufacturing destination. AtRaymond we achieved the preferred supplier status for many more of our global clients andits a testimony to the India story that holds the beacon for a brighter future. Aswe approach our centenary year in 2025 the upcoming years will be defining a century-longjourney of Raymond that will be a momentous milestone and a telling tale of how ahomegrown brand reinforces its relevance in all Indian hearts.