New Delhi: Indian apparel and suit maker Raymond Ltd is fully committed to its partnerships, some of which are losing money, and is not rethinking its joint-venture strategy, its chairman said on Wednesday.
Three of Raymond’s five joint ventures together lost Rs320 million ($7.8 million) in the fiscal year 2007. This compares with the company’s profit after tax of Rs880.9 million in the same year.
“I am completely 100% committed to the philosophy of partnership for growth,” Gautam Singhania told reporters at the launch of new line of women’s wear.
Raymond’s cotton shirting-fabric joint venture with Cotonificio Honegger, part of Italy’s Zambaiti Group, is already making money, Singhania said.
The unit, which began production in October 2006, makes fabric for both Indian and international customers.
A joint venture for denims with Belgium’s UCO NV was going through a “tough time”, but Singhania said he expected much better results this fiscal year.
Meanwhile, a tie up with Italy’s Lanificio Fedora SpA for woollen fabrics — including blankets and shawls — will take a “little longer” to break even, he said.
India aims to grow its textile sector at an annual 16 percent over the next five years, from about 10 percent in 2006-07.