Raymond Ltd, one of India’s oldest apparel companies, has woken up for a major push of its operations.
In the second major announcement in as many weeks, the company has said that it will target Rs 200 crore in revenues as part of growth plans in tier IV and V cities.
The announcement comes as the company attempts to leverage its existing assets to create more value for the shareholders, said Raymond chairman and managing director Gautam Hari Singhania.
The company, which has spun off its engineering division to a separate company, decided to develop its mill land in Thane and brought its new mill in Vapi on stream.
As part of its latest push into the hinterland, the company has invested upwards of Rs 50 crore in a series of franchise outlets in small towns. The number of The Raymond Shop outlets now number 500.
“We believe that the smaller towns and cities will be the new corridors for retailers,” said Singhania.
Most outlets would be opened through the franchise model, where the company and the franchisee would roughly share equal part of the total cost, said Deepak Khetrapal, chief operating officer, Raymond.