Raymond Lifestyle Ltd: Walk With Me Through the "Sheep's Back to Man's Back" Vapi Plant

As Raymond Lifestyle Ltd. (RLL) prepares for its upcoming listing in September 2024, the company hosted a plant visit and analyst meet at its Vapi facility in Gujarat. This event offered a glimpse into RLL’s ambitious plans under its "Lifestyle 2.0" strategy, focusing on expanding its dominance in the wedding and ethnic wear segments, enhancing operational efficiency, and exploring new growth avenues.

Walk with me through the plant (link to video)

The Vapi facility, which plays a crucial role in RLL's suiting fabric production, showcases the company's commitment to high-quality production. The facility, contributing 45% of the suiting segment's revenue, is equipped to craft a wide range of suiting fabrics, utilizing high-tech operations and a significant portion of renewable energy sources.

Dominance in the Wedding and Ethnic Wear Market

RLL has been a key player in the Indian wedding apparel market for the past century, particularly in the suiting segment. The company currently holds a 5% market share in the ₹750 billion men’s wedding wear market. With plans to expand its Ethnix store network from 114 to 414 stores over the next few years, RLL aims to grow its wedding business by 1.5x by FY27 and 2.3x by FY30.

Ethnix, RLL’s ethnic wear brand, is set to capitalize on the growing demand for ethnic wear in India, especially in the wedding segment. The brand will focus on expanding its store presence and leveraging RLL’s extensive TRS (The Raymond Store) network to boost sales.

Success in the Branded Apparel Segment

RLL’s TRS network, the largest among its peers, is set to expand to 1,200 touchpoints by FY27. The company plans to replicate the success of its TRS stores in its Exclusive Brand Outlets (EBOs), with a target of 900+ EBOs by FY27. This expansion will focus on improving accessibility and catering to the rising demand for RLL’s diverse apparel offerings, including its flagship brands such as Park Avenue, Raymond Ready to Wear, and ColorPlus.

Expanding Garmenting Business

RLL's garmenting business, primarily export-oriented, is also poised for growth. The company is expanding its manufacturing capacity with a ₹2 billion investment, aiming to cater to the increasing demand from international markets. The recent geopolitical shifts, including the turmoil in Bangladesh, present an opportunity for RLL to attract new customers and increase its market share.

New Ventures: Innerwear and Sleepwear

RLL is also venturing into the men’s innerwear market under the Park Avenue brand, targeting the semi-premium and premium segments. Similarly, the company is making strides in the sleepwear segment with its new SleepZ brand, aiming to capture the largely unorganized market by offering attractive pricing and a wide range of products.

Strengthening Leadership and Expanding Core Capabilities

RLL’s leadership team has been significantly bolstered, with top executives from prominent Indian companies joining as independent directors. The management, led by CEO Sunil Kataria, is focusing on strengthening the company's core textile business while accelerating growth in branded apparel, ethnic wear, innerwear, and sleepwear.

Conclusion

Raymond Lifestyle Ltd. is on a growth trajectory, driven by its strong leadership, strategic expansions in the wedding and ethnic wear markets, and new ventures in innerwear and sleepwear. As the company gears up for its listing, its ambitious plans under the Lifestyle 2.0 strategy could position it as a dominant player in India's consumer discretionary sector.