Raymond eyes big revenue from small towns

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Mumbai: Targeting smaller cities, Raymond Ltd plans to open 300 retail stores in Class IV and Class V cities by March 2011, taking the total number of “The Raymond Stores” to 800 across India. The apparel major is targeting an additional annual revenue of Rs 200 crore through the new outlets.

Raymond, which sells Manzoni, Park Avenue, Parx and ColorPlus brands, opened 50 new stores in September alone.

Raymond Ltd CMD Gautam Hari Singhania told FE, “Most of our new stores would be across smaller towns, which typically have a population of five lakh or less. Rise in per capita consumption, increasing consumerism across India and increased penetration in smaller cities are factors for rapid expansion of the consumer industry in India.” The company plans 1,500 sq ft stores in towns like Bijapur, Ahmednagar, Bellary, Mandya, Ghoti, Ambezogai and Bhandara, among others.

He added that his company will invest Rs 100 crore between April 2009 and March 2011, of which Raymond would contribute 50% and the remaining would be borne by the franchisees. The expansion drive will add about 4,50,000 sq ft of additional retail space. The company also plans to introduce new products at various price points.

Looking to expand abroad as well, Singhania said the company has 36 stores outside India and plans to penetrate more in the Middle-East market. International operations contribute 20% of the company's revenue. The company's exports have grown 20% on a year-on-year basis.