Raymond Lifestyle to Open 900 Stores in 3 Years, Targets 15% Sales Growth: Singhania

Raymond Lifestyle, the demerged entity from Raymond, is set to expand aggressively, adding 900 new stores over the next three years. The company is targeting 12-15% annual sales growth and 18-20% operating profit growth, as stated by Chairman Gautam Singhania. The shares of Raymond Lifestyle will list on the stock exchanges on September 5.

Growth Strategy and Market Opportunities

Singhania explained that the demerger aims to unlock shareholder value by creating a focused lifestyle business entity. This will allow investors to concentrate on the lifestyle segment, driven by a professional management team. The company sees substantial opportunities due to internal challenges in China and Bangladesh and favorable trade agreements with the UK, European Union, and Australia.

Capex Plans and Revenue Projections

Raymond Lifestyle plans to spend Rs 100 crore in capital expenditure this fiscal year to increase its production capacity to 10.7 million pieces. This expansion is projected to generate an incremental revenue of Rs 400 crore by FY2027. The company, which reported a revenue of Rs 6,691 crore for the fiscal year ending March 31, 2024, is also focusing on enhancing corporate governance and boosting shareholder confidence.

Board Restructuring and Governance Enhancements

To strengthen its management, Raymond Lifestyle has reshuffled its board, appointed seven independent directors, and created a new management team over the past two years. The company recently expanded its board by appointing Rajiv Sharma as a non-executive director.

Target Market and Future Plans

Raymond Lifestyle is aiming for a 15% compound annual growth rate (CAGR) to capture a 6-7% market share in the fast-growing men's wedding wear market by 2027. With a clear focus on its core businesses, including branded textiles, apparel, and garmenting, the company is poised for robust growth.

Conclusion:

Raymond Lifestyle's strategic expansion plan and focused growth strategy position it to capture significant market share in India's competitive lifestyle segment. With the demerger unlocking value and the company's strong governance and management framework, Raymond Lifestyle aims for sustained growth in the coming years.

[ Disclaimer:This article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to conduct their own research or consult with a financial advisor before making any investment decisions. The content reflects news and market trends at the time of writing and may be subject to change.]