Raymond Group wants branded garments to make up half of its topline.
As of now, the Rs 1,800 crore group earns most of its revenues from its textiles business while brands contribute a marginal sum.
Said Pradeep Bhandari, group president, Raymond Ltd: “Currently, the group’s portfolio in apparel is very small as compared to its flagship textile business. Considering the present growth rates and the emerging trends, the company has set itself a 10 year target for the group to earn equal revenues from apparels and textiles.”
In one of its initiatives towards meeting the goal, Raymond Apparel Limited, a 100 per cent subsidiary of Raymond Group, is embarking on a separate retail strategy for its Park Avenue, Parx and Manzoni brands.
As part of the strategy, the company is to open exclusive stores in select cities in addition to its presence in The Raymond Shop network and multi-brand outlets.
Initially, the company plans to open 15 stores this year on its own and later expand them through a mix of company owned and franchisee route.
“By setting up exclusive stores, the company is not diluting its presence but plans to leverage on the strong brand presence by displaying an entire brand range,” said Bhandari.
The company opened its second exclusive Park Avenue store spread over 2,200 sq feet in Bangalore. This is only the second such store after the one in Mumbai and is will shortly open its first Manzoni store in New Delhi.
Raymond Apparel is also formulating a strategy to leverage its The Raymond Shop network for selling all the brands under it. Through its Design Studio the company is equipping itself to churn out the latest designs to cater to individual needs.
Raymond Apparel Limited in 2004 registered sales of Rs 190 crore at ex-factory and Rs 260 crore at retail-level.
The brands also performed better with ColourPlus clocking Rs 95 crore (ex-factory) and Rs 135 crore (retail-level), Park Avenue Rs 110 crore (ex-factory) and Rs 150 crore (retail-level). Parx Rs 60 crore (ex-factory) and Rs 88 crore (retail-level).