Q] Raymond is planning its biggest retail expansion ever, aiming for 800-900 stores in the next three years. What geographic regions are you prioritising?
Geographically, we don’t have a particular bias or concentrated focus on specific areas; instead, our approach is more tier-focused. We’re also exploring specific clusters, particularly in smaller cities that are emerging as key markets. For instance, Ranchi and Guntur, along with areas around Madurai show great potential. Overall, Raymond’s sales are pan-India, with no particular regional focus, as we cater to a wide range of customers across all classes, offering products from `300 to `300,000 per meter.
Q] How soon do you expect Raymond Lifestyle to establish a significant presence in the sleepwear and innerwear market?
Sleepwear is set to launch soon, with plans to build momentum over the next couple of months. The innerwear line will follow in about four months, and both are expected to expand quickly. While the brands are anticipated to scale up significantly within 8 to 12 months, the company believes that true brand-building is a slow and gradual process. However, you can expect to see significant activity and growth in the coming months.
The sleepwear brand is mostly for the mass market, we’re democratising the unbranded market, pricing it at the sub-1000-rupee range. Innerwear is more premium.
Q] How do you position yourself in a market where branded innerwear isn’t top of mind for most consumers?
Despite being fragmented, the innerwear market in India has seen significant branding. It ranges from premium and luxury brands, to local products priced at `50-70. There’s a noticeable trend of consumers shifting from unbranded to branded products, and we’re aiming to capitalise on that shift.
Q] Last year, the festive season was somewhat dull for the FMCG sector. How does the outlook for this year’s festive season compare?
The wedding season has been relatively quiet in the first half of the year, but some factors could lead to a strong H2. Firstly, the wedding season has shifted to November, typically driving significant spending across categories during that period.Secondly, the monsoons have been excellent this year, which is crucial for the Indian economy, especially in FMCG markets. Last year, a patchy monsoon affected the markets, but this year there is expected to be a significant boost. Inflation also seems to be cooling down, and there is talk of a potential rate cut by the RBI, which could further stimulate spending by putting more money in people’s hands. All these factors together suggest a strong consumer spending outlook in H2.
Q] So how are your ad spends looking for the festive season?
We’re significantly increasing our ad spends to a very high double-digit percentage. Several campaigns are in the pipeline, including a new comprehensive campaign, upcoming launches related to innerwear or sleepwear, and digital product campaigns for Park Avenue and Colorplus. These are the key initiatives I’m focusing on.
Q] Sustainability is becoming a major trend, especially among younger generations. How is Raymond adapting to this shift?
We have clear ESG goals at Raymond, and we’re already innovating sustainably. For instance, in our Ethnics line, we’ve introduced bamboo products, which are highly sustainable. Our wool products are made from natural fibres, and we’re continually experimenting with new, sustainable, and recyclable technologies for both fibres and products.
Q] What is the outlook for Raymond in the coming quarter and coming years?
In the coming year, we anticipate a very strong second half with double-digit growth. Over the next 3 to 5 years, we project a top-line growth of around 12 to 15% and aim to double our EBITDA within the next four years.
