Raymond to invest Rs1,400 crore in Amravati plant, open 300 stores in 2 years
New Delhi: Textile and apparels maker Raymond will invest a total of Rs1,400 crore in a phased manner in its new plant at Amravati in Maharashtra which will go on stream by this year-end.
The company has made an initial investment of Rs200 crore for the first phase of the new unit that will produce cotton shirts, linen and denim, among others.
“Our greenfield project in Amravati is likely to be commissioned by year-end. With an initial capital infusion of Rs200 crore, the total investment will be about Rs1,400 crore in a phased manner,” Raymond chairman and managing director Gautam Singhania told PTI.
When fully operational, the Amravati plant will create an employment for about 8,000 workers. It is spread across 500 acres. The plant will be used to produce items to meet demand of Raymond’s own brands as well as for other third parties.
It is expected to help meet demands of the company, which is embarking on a retail expansion across India with 300 new stores slated to be opened in the next two years. The majority of the new stores will be in small towns.
“We are looking at 300 Raymond shops coming up in next two years and about 150-200 other format stores like Park Avenue, Colorplus and others,” Raymond CEO lifestyle business Sanjay Behl said.
At present, Raymond has 1,100 outlets in about 450 cities. Behl said with this latest expansion, Raymond will have presence in 750-800 cities in the country. “Most of the expansion of the new stores will be in tier 4, 5 and 6 cities,” Behl said, adding that “we have our unique presence in about 450 cities which makes us the largest and the deepest penetrated retailer.”
When asked about the impact of the goods and services tax (GST) on the company, Singhania said: “There will be a boost of affordability of branded garments priced below Rs1,000 which have been thoughtfully levied at just 5% of sale price.”
Under the new GST regime scheduled to be implemented from 1 July, man-made apparel up to Rs1,000 will attract a 5% tax, lower than the existing 7%. Those costing above Rs1,000 will continue to attract 12%.