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Raymond earmarks Rs25-30 cr for accessories biz

Raymond earmarks Rs25-30 cr for accessories biz
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First Published: Fri, Mar 25 2011. 05 49 PM IST
Updated: Fri, Mar 25 2011. 05 49 PM IST
Mumbai: Textiles maker and retailer Raymond plans to invest Rs25 crore to Rs30 crore in FY12 to expand its accessories business and add sunglasses to its range, Gautam Singhania, chairman and managing director, said on Friday.
“We already have accessories like deoderants, perfumes and belts and now we are planning to add a few more products including sunglasses to the range,” he told reporters.
The company, which sells apparel brands such as Manzoni, Park Avenue, Parx and ColorPlus, had revenues of Rs800 crore from its apparel division in 2009-10.
Raymond expects revenue of its biggest brand, Park Avenue, to grow 30% year-on-year.
“Park Avenue is a Rs5 billion (Rs500 crore) brand and we expect sales from this to grow at least 30% in FY12,” Singhania said.
The company is also planning to launch additional branded outlets for Park Avenue in the next financial year.
Singhania said the firm plans to open 100 new retail stores under the brand Raymond in FY12.
“We have about 700 retail stores and the Raymond retail stores are set up on franchise models. Hence, there won’t be much capital investment for the new stores,” he said.
Singhania said, the firm has no choice but to take a price hike to pass on the sharp surge in cotton prices.
Last month, a senior executive had told Reuters Raymond planned to raise prices by 5-10% next quarter to offset cost push.
Raymond shares closed up 2.92% at RS328.05 in a firm Mumbai stock market.
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First Published: Fri, Mar 25 2011. 05 49 PM IST