Raymond Apparel Ltd, plans to 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.
The company has earmarked Rs 35-40 crores for investment in the readymade garments business.
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.
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 crores.
In comparison, Grasim which owns brands such as Allen Solly, Louis Philip, Van Heusen and Peter England enjoys much higher sales volume.
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.
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 crores from this range.
Source: Business Standard