Textile and apparel Raymond is planning on aggressive store expansion to grow its lifestyle business. By increasing the number of stores, the company aims to enhance accessibility and cater to the growing demand for its lifestyle products.

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The aggressive store expansion plan and substantial capex allocation underscore the company's commitment to growth and innovation. By focusing on the lifestyle business and its projected contribution, Raymond aims to strengthen its market position and generate sustainable long-term value.

In an interview with CNBC-TV18, Amit Agarwal, Group CFO of Raymond unveiled their ambitious store expansion plan for the lifestyle business and the significant capital expenditure (capex) allocated to the garments segment.

He said, “We have charted out a significant growth plan for the lifestyle business. We are opening, in the next 3-4 years, over 500 stores, especially exclusive brand outlets (EBOs) to drive growth. So that will be both for our apparel brands be it Park Avenue, Raymond ready to wear ColorPlus as well as ethnic stores, but most of it is a franchisee lead so we are not putting a large capex."

Agarwal highlighted the company's substantial capex allocation of Rs 200 crore specifically for the garments business. The capex infusion will enable the company to enhance its manufacturing capabilities, streamline operations, and meet the evolving needs of customers.

Agarwal also provided insights into the expected contribution of the lifestyle business to Raymond's overall performance. By the end of the fiscal year 2023-2024 (FY24), the lifestyle business is projected to contribute a significant 70 percent to the company's revenue. This forecast highlights the growing importance of the lifestyle segment and its potential to become a major revenue driver for Raymond soon.

InCred has initiated coverage on Raymond with an ‘add’ rating and target price of Rs 2,200. The brokerage house believes Raymond is well-placed from a growth perspective led by the changes in its leadership. The financial services platform also said that the sale of non-core FMCG portfolios at a rich valuation has driven the group to a net debt-free status.

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