Raymond's UCO Denim plans asset-light growth and further product development

By

Isabelle Crossley

Published
Jul 31, 2017

Launching a three year 2020 strategy, Raymond UCO Denim Pvt Ltd expects continued growth as the denim market in India continues its slow-paced expansion.

Raymond first entered the denim market in 1996 in collaboration with an Italian firm. After this, they formed a joint venture with Belgium’s UCO NV and launched Raymond UCO Denim Pvt Ltd in 2006. A decade later, the company is still producing denim and is looking to expand its market reach.

The company has launched a three year “2020 strategy” in which they aim to achieve double digit CAGR in their topline. Arvind Mathur, CEO of Raymond UCO Denim Pvt Ltd stated that FY 2016’s fabric capacity expansion project has now stabilised and that “turnover of Indian operations is expected to grow at a healthy CAGR” over the next three years.

The current weaving capacity of all of the company’s factories is over 50 million metres and the main focus is on multi count yarn fashion denims. Fabric manufacturing facilities are located in Maharashtra and Romania and cover yarn spinning, weaving, dyeing, and finishing.

After expanding its fabric production Raymond UCO is now looking to grow certain product categories and penetrate deeper into markets they have a foothold in. Using the light asset model, growth is planned through the continuation of collaborations with denim brands and pioneering new styles according to customer demand. Mathur stated that the denim market in India is growing at a rate of between ten and 15 percent (according to different sources) and so growth, albeit at a slow rate, is something the company hopes to capitalise on.

Mathur said of the future direction of denim in India, “The top five predictions on denim fabric preference trends for the coming seasons will be primarily driven by comfort and performance. Stretch as a product category will grow. Bi-stretch, Soft Super Stretch, Sustainable and Performance denims will be in the limelight. The knit look will continue to dominate the domestic market.”