Raymond will invest close to Rs 200 crore and expand its capacity by a third of its current levels. This will take the garment manufacturer and retailer to become the third largest suit maker in the world, said chief financial officer Amit Agarwal in an interaction with CNBC-TV18.
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“…In the garmenting business we are putting a capex of almost Rs 200 crore, expanding the lines and capacity by one third, which will take us to the third-largest suit maker in the world,” Agarwal said.
He also added that the company has shown good growth and an improvement in the profitability, which will help further grow the revenue. Agarwal also said the wedding and general retail demand has been on the weaker side in FY24 due to inflationary pressures.
“Overall as business, we are quite satisfied. The retail market has been a bit weak in FY24, but we have created a platform that will help us achieve our target once the market is back on track.”
However, the company’s branded apparel segment saw a growth of over 20 percent on an annual basis, which reflect the value of the brand, Agarwal said.
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The garmenting segment recorded a de-growth in the fourth quarter, for which Agarwal blamed the Red Sea crisis that has hurt the shipments. The company has a strong order book thanks to the Make in India and China plus one policy. “The China plus one policy is helping Indian garment makers significantly,” he said.
The company on May 3 had reported an 18 percent jump in its consolidated net profit at Rs 229 crore in the quarter ended March 31. Its revenue in the three-month period stood at Rs 2,688 crore, against Rs 2,192 crore in the same period last year, according to an exchange filing.
The company had also announced a dividend of Rs 10 per share, according to the filing.
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On May 6, the stock of the company was trading at Rs 2178, down 2.22 percent on BSE at 14:06 PM.
