The ongoing violence and political instability in Bangladesh have created a significant opportunity for India’s leading textiles and apparel company, Raymond Ltd. Chairman and Managing Director Gautam Hari Singhania revealed that the company has received a “huge number of inquiries” from global firms looking to shift their garmenting business away from Bangladesh. Raymond, which has made substantial investments in its garmenting facilities, is poised to capitalize on this shift, leveraging its robust supply chain and manufacturing capabilities.
Raymond, known as the third-largest suit maker in the world, is strategically positioned to take advantage of the situation. Singhania expressed optimism about the potential for garmenting business to move from Bangladesh to India, given the latter’s more comprehensive supply chain capabilities. “India is better-placed with its end-to-end supply capabilities linking all stages, as companies like Raymond are present in both fabric and garmenting business,” he said. This integrated approach, he explained, would not only save time for international brands but also offer a seamless experience from fabric production to final garment delivery.
One of the key advantages India holds over Bangladesh is its well-established fabric supply chain. Singhania emphasized this point, noting, “Bangladesh does not have a fabric supply. India has got a great opportunity to take advantage of this fabric supply because we have the fabric base here. They have (only) garmenting base.” This strategic advantage allows Raymond to offer a more efficient and reliable solution to global brands that are seeking to reduce lead times and ensure consistent quality in their products.
While acknowledging that Indian labor costs may be higher than those in Bangladesh, Singhania pointed out that India’s political stability, coupled with its large middle class and strong consumption and manufacturing capabilities, makes it an attractive alternative. The country’s stability offers reassurance to international companies concerned about the risks associated with operating in politically volatile regions.
Raymond’s recent corporate restructuring further strengthens its position in the global market. The company has divested its Raymond Lifestyle division following a demerger with its parent company, Raymond Ltd. This demerger, completed on June 30, 2024, has led to the creation of Raymond Lifestyle Ltd, which will house all apparel-related businesses of the nearly 100-year-old Raymond group. The new entity is set to be listed on the stock exchange in the second quarter of this year, a move that is expected to unlock significant value for shareholders and provide a sharper focus on the apparel business.
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Singhania also highlighted the positive impact of the ‘China+1’ strategy, which has been increasingly adopted by global companies looking to diversify their supply chains away from China. This strategy has made India a preferred sourcing destination, further bolstering Raymond’s prospects. “This is playing to our advantage, leading to stronger business relationships with existing customers and presenting multiple opportunities for new markets and customer acquisition,” Singhania noted. The company is witnessing growing interest from global brands seeking high-quality manufacturing alternatives to China, and India’s reputation as a reliable partner is enhancing its appeal.
Raymond’s capacity to produce 7.5 million pieces of jackets, trousers, and shirts in India, along with an additional 3.2 million pieces in Ethiopia, underscores its ability to meet the growing demand from international markets. The company’s production capabilities, combined with its strong supply chain, position it well to capitalize on the shifting dynamics in the global garment industry.
Financially, Raymond continues to perform robustly. In the first quarter ended June 2024, the company reported a 26.7% increase in consolidated net profit from continuing operations, reaching Rs 57.04 crore. This marks a significant improvement from the Rs 45.02 crore profit reported in the same quarter of the previous fiscal year. Revenue from continuing operations also saw a substantial rise, growing from Rs 473.37 crore in the year-ago period to Rs 937.65 crore.
As Raymond looks ahead, the company is well-positioned to take advantage of the current challenges facing Bangladesh’s garment industry. With its strong infrastructure, integrated supply chain, and strategic corporate restructuring, Raymond is ready to meet the increasing demand from global brands seeking reliable and high-quality manufacturing solutions.
