Raymond to expand presence in small towns to boost sales

By

Maverick Martins

Published
Mar 5, 2018

The textile and apparel manufacturer Raymond is looking to expand its presence in rural India by tapping the smaller towns and expects these markets to contribute around 10 percent to the overall sales of the company.
 

The company is planning to open up around 60 mini Raymond stores across the country with an investment of around Rs 30 crore and expects the stores to generate revenues up to Rs 60 crore per annum.
 
Raymond had posted strong growth in the third quarter ended December 2017, with revenue of Rs 1,513 crore (approx $238.3 million) and net profit of Rs 31 crore (approx $ 5 million).

"We had conducted a study last year and identified at least 1,200 urban townships with a population of over 50,000. We have no presence in at least 800 of those towns," Raymond retail director Mohit Dhanjal was quoted as saying by news agency PTI.
 
"We are looking to set up mini Raymond shops in these tier IV, V and VI towns, through an asset-light franchisee model," he explained.
 
“It would cost Rs 50-60 lakh to set up a mini Raymond shop, and the company has tied up with local investors for this. The company has set up about 40 mini Raymond shops, and will open another 60 stores by the end of 2018”, he added.
 
Currently, Raymond has 1,100 outlets in about 450 cities. It is looking to expand its retail presence to about 1,500 stores by 2020.