New Delhi: Raymond Lifestyle Ltd. (RLL), whose shares will be listed on the bourses on September 5, 2024, is on its way to towards the largest-ever retail expansion by adding 900 new outlets over three years. It is eyeing a 15 per cent compounded annual growth rate (CAGR) to attain around 7 per cent market share in the fast growing men’s wear wedding market by 2027, it said in a media announcement.
Raymond, which will now have two listed entities following the demerger of its retail and lifestyle businesses, is focussed on unlocking shareholder value by creating specialised businesses.
Backed by a legacy of nearly a century, Raymond has the largest brand in the Indian men’s-wear wedding market, estimated at around Rs 75,000 crore. RLL, which is set to emerge among top three global fabric suppliers by the end of this year, has sales of Rs 2,550 crore from the wedding business in FY’24, which includes Raymond’s wedding and ceremonial attire and Ethnix, its Indian ethnic wear offering.
Underscoring RLL’s role in further cementing itself in rapidly-expanding lifestyle segment, Gautam Singhania, chairman and managing director, of Raymond Group, said, “The demerger aims at unlocking shareholder value by creating a focussed lifestyle business entity. Raymond Lifestyle will sharpen its strategic focus in this fast-growing sector to become among the top three global fabric suppliers by the end of this year. The global scenario presents significant opportunities, particularly the challenges in China and Bangladesh and trade agreements with the UK, EU and Australia.”
Highlighting RLL’s expansion plans, Sunil Kataria, CEO, Raymond Lifestyle, said, “When it comes to our existing brands, Ethnix has already established its distinct position in the market, and we plan to nearly triple our physical presence with an additional 300 Ethnix stores in the next three years. We believe that we can achieve unparalleled growth in this wedding segment, significantly consolidating our position as the dominant market leader.”
As a focussed, pure play consumer business, RLL is pursuing a three-pronged strategic approach of strengthening the core of branded textile, accelerating the growth of apparel garmenting and building new categories such as ethnic wear, inner wear, sleep wear and international retail.
RLL is focussed on enhancing the distribution presence in the country and plans to set up over 650 Exclusive Brand Outlets (EBOs) over the next three years.
Speaking about RLL’s growth plans, Amit Agarwal, Chief Financial Officer, Raymond Group, said, “In the next three years, we anticipate Raymond Lifestyle doubling its EBITDA to over Rs 20 billion. We are also looking towards a 12–15 per cent sales growth in the lifestyle sector.”
