New Delhi: Raymond’s diversified group, which has majority business interests in the textile and apparel sector, is “very optimistic” about recovery amid the COVID-19 pandemic, said Chairman and Managing Director Gautam Hari Singhania.
Viewing fiscal 2020-21 as a “complete write-off”, the group expects it to end on a flat note in terms of growth prospects with businesses taking a hit in the first six months of the current fiscal by pandemic-related disruptions.
Asked about growth expectations, Singhania told PTI “the group has gone through a very difficult phase over the last six months when everything was closed” due to the pandemic, so there will be no growth this fiscal.
Asked about the impending business recovery, Singhania said: “I think there will be a cautious optimistic recovery”.
He, however, said that the group had already achieved pre-COVID-19 sales figures in some business segments and even more in some other verticals, although they expect a longer time for recovery in the textile and apparel business.
“We have a mixed bag sector to sector and I think the textile and apparel sector will take longer to recover as the wholesale market is closed for a long time. It took a little bit longer but I think we are in the right direction. The good thing is every week. week or two, we’re seeing a little more sales, “he said.
“People are slowly, slowly buying back and I’m sure sales will come back,” he added.
The Raymond Group operates in segments such as FMCG, Engineering and Prophylaxis in addition to the textile and apparel sector.
The Group has revenues of Rp3,186.39 crore for the 2019-20 financial year. It reports income Rp24.03 crore in the quarter April-June 2020 and Rp254 crore in the quarter July-September 2020.
“This year is a complete wreck. So I don’t think we will reach 2020 levels but going forward, many companies have changed themselves. They have set new benchmarks and are moving forward, I think there are many opportunities for companies that survive the pandemic. this, they’ll come out stronger, “he said.
The company is also confident in understanding the recent trend of changing clothing from formal to causal as working from home is catching up under the new post-pandemic norm.
According to Singhania, Raymond’s portfolio has changed “dramatically” with strong brands like Colorplus and Parx from 10 years ago, when only making woolen suits.
Even Raymond’s own portfolio has changed a lot with lots of casual wear. So the overall dynamics are changing and our product offerings are changing too, he said, adding that even though there was a move from formal to casual, we still got a share of the pie. “
In addition, the company which also has manufacturing operations in Ethiopia is optimistic about this.
“Ethiopia is very dependent on the US market, which is experiencing a slowdown. But we’ve seen Ethiopian orders come back, “he said.
Regarding investment, Singhania said the company will continue its regular capital expenditure and maintenance capital expenditure.
Singhania also denied recent reports that the group is leaving the FMCG business.
The group is also expanding digitization in retail and adopting an omnichannel approach, however, Singhania said that physical retail will not go down because shopping is still an experience and people will continue to shop outside.
Raymond will continue to expand its retail presence targeting smaller III, IV and V tier markets in addition to the main cities.
This story has been published from wire agent bait without modification to the text.