Raymond lines up Rs 225 cr capacity expansion

The Rs 1,500 crore Raymond Group plans to consolidate its position in the textile business through upgradation, expansion and acquisitions.

Keeping in mind the opportunities that will arise in the post-quota regime, the group has invested over Rs 225 crore in its expansion projects.

This includes three new manufacturing units for apparel and denim ware in Bangalore at an investment of Rs 100 crore and a Rs 127 crore capacity expansion at its denim facility at Yuvatmal in Maharashtra. Apart from textiles, the group has presence in engineering files and tools, prophylactics and toiletries.

"We believe that our investments in denim and apparel will reap benefits in the future. With this Raymond is getting ready to face the challenges and opportunities in the coming years," says Nabankur Gupta, group president, Raymond.

Raymond's manufacturing facility under its group company Silver Spark Apparel at Bangalore has an annual capacity of 0.5 million suits and 1.3 million trousers, while its denim wear manufacturing facility in the city will have a capacity of three million garments.

This unit will be operational by the end of the current calendar year. The third facility in the city to manufacture formal shirts will have a capacity of 3,000 shirts per day.

The project will be implemented through a new company to be formed, and will commence operations from March, 2005. The capacity of its Yuvatmal unit will be hiked from 20 million metre per annum to 30 million metre per annum. This project will go on stream by April 2005.

According to Gautam Singhania, chairman and managing director, Raymond, "These investments are in line with our vision to become a global player in our areas of core competence." In 2001 the group had divested certain unrelated businesses to focus on its core businesses.

Apart from having three integrated worsted textile units in Maharashtra and Madhya Pradesh, the company has one denim manufacturing unit and five engineering files and tools unit in the country.

With an installed capacity of 25 million metres and over 60 per cent of the market share in India, Raymond is the largest integrated producer of worsted fabric in the world. The company, with a capacity of 30 million metre, is the second largest producer of denim in India.

Raymond exports its high-end fashion denim to the US, Europe, south-east Asia and middle east.

It is also making inroads into the global apparel market. The recent commissioning of its 'formal suits and trouser' plant in Bangalore marked the group's foray into the global apparel outsourcing market.

The company has offices in London and China, and a retail network pans across countries in India and the middle-east.

The company produces nearly 12,000 varieties of suitings which are available in over 400 towns through 30,000 retailers.

Raymond suitings are also available through 310 exclusive shops in 135 cities in India and abroad, with 290 outlets in India and 20 outlets abroad.