The violence and political crisis in Bangladesh have resulted in “huge number of inquiries” from global firms for leading textiles and apparel company Raymond, Chairman and Managing Director Gautam Hari Singhania said.
Raymond, which has invested in its garmenting facility to become the third largest suit maker in the world, is ready to “take advantage” from the current situation, Singhania told PTI.
The Raymond CMD sees positive signs on the possibility of shifting of some garmenting business to India from Bangladesh.
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, which, in turn, will save time for international brands also on final delivery, he said.
“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,” said Singhania.
Though Indian labour may be more expensive than Bangladesh, it is a politically stable country with a large middle class with great consumption and manufacturing capabilities, the Raymond CMD said.
The company has divested Raymond Lifestyle, following its demerger with parent company Raymond, which is all set to list this week. This would house all apparel-related businesses of the nearly 100-year-old Raymond group.
Singhania also highlighted the positive impact of the ‘China+1’ strategy, which is making India a preferred sourcing destination.
“This is playing to our advantage, leading to stronger business relationships with existing customers and presenting multiple opportunities for new markets and customer acquisition,” he said.
The Raymond CMD also praised the quality of work done in India in the apparel-related segment compared to China.
According to its latest annual report, Raymond has a capacity to produce 7.5 million pieces of jackets, trousers and shirts in India and 3.2 million in Ethiopia.
Raymond Ltd on Tuesday reported a 26.7 per cent increase in consolidated net profit from continuing operations at Rs 57.04 crore in the first quarter ended June 2024.
The company posted a consolidated net profit of Rs 45.02 crore from continuing operations in the same quarter last fiscal, Raymond Ltd said in a regulatory filing. Revenue from continuing operations in the first quarter stood at Rs 937.65 crore as against Rs 473.37 crore in the year-ago period, it added.
During the quarter ended June 30, 2023, a scheme of demerger of the lifestyle business of Raymond Ltd into Raymond Lifestyle Ltd was accorded board approval. The demerger of the lifestyle business was completed on June 30, 2024, the company said, adding the listing of Raymond Lifestyle Ltd is expected in the second quarter of this year.