Textile major Raymond has assigned a full year capex of Rs. 400 crore for its two plants at Amravati and Ethiopia along with renovation of its stores.
The linen factory set up in Amravati is expected to bring a top line of Rs. 250 crore and a similar turnover is expected from the new plant in Ethiopia once they start running their full capacities.

Net debt has come down from Rs. 1,988 crore to Rs. 1,660 crore for the textile company as it invests behind manufacturing capex at its two new facilities in Maharashtra and Africa.

Using the franchise model to penetrate into the hinterland, Raymond is making sure its suiting and shirting range reaches tier 3,4 and 5 towns through the �mini� TRS (The Raymond Shop) model.

With stores measuring between 800 and 1,100 sq ft, there are already 53 mini-stores with a target to reach 81 stores this year.

Park Avenue brand

However, growth for its leading brand of Park Avenue slowed down at 6 per cent as the size of the brand was the largest in its portfolio.

Sanjay Behl, CEO, Lifestyle, Raymond, said: �Revenues from Park Avenue stand at under Rs. 700 crore and since the size of the brand is large, there was single digit growth. We are investing behind it and bringing in a full range and refurbishing the retail identity of Park Avenue.�� About 80 per cent of Park Avenue is formal wear and the balance under casual wear and accessories.

Margins have been dampened due to end of season sales during the third quarter and to make up for it, Raymond intends staying way from discounts as it innovates with its portfolio.

�We have to maintain the health of the portfolio for which the new set of 45 Raymond stores planned will not be giving any discounts,�� added Behl.

Monetising 140 acres belonging to the Raymond Group in Thane district in Maharashtra is also on the cards by the next quarter as it awaits regulatory approval, which will help in improving margins further.

Besides, the textile company will not show FMCG as a separate segment, instead have it as an associate company within the group.

Raymond has two companies such as JK Helene Curtis and JK Ansell (it has bought Ansell�s stake recently) with a combined sales of about Rs. 400 crore.

FMCG will not be treated segment under textile, but the business will be under an associate company as the two FMCG companies get integrated.

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