Raymond Expands Garmenting Aiming for China+1, Becomes 3rd Largest Suit Maker

The company’s efforts include diversifying into women’s tailoring, high-value tailored casual wear, and hybrids, broadening its product range for new markets while focusing on customer acquisition.

Raymond is set to increase its garmenting capacity by one-third, positioning itself as the third-largest suit manufacturer globally. This expansion aims to leverage the China plus one strategy in the international market. The company’s efforts include diversifying into women’s tailoring, high-value tailored casual wear, and hybrids, broadening its product range for new markets while focusing on customer acquisition.

The company’s latest annual report noted that the China+1 strategy has been beneficial, strengthening business relationships with existing clients and opening numerous opportunities for new market entry and customer acquisition. Gautam Hari Singhania, Chairman and Managing Director, highlighted that this move aligns well with the Indian government’s Make in India initiative. He emphasised that India remains a preferred sourcing destination, with the China plus one strategy playing a significant role. Singhania announced that the expanded capacity would elevate Raymond to the status of the world’s third-largest suit maker once fully operational.

Amit Agarwal, Chief Financial Officer, remarked that this expansion not only enhances Raymond’s global footprint but also bolsters its domestic manufacturing capabilities. The company’s garmenting unit operates as a white-label manufacturer and integrated supplier of high-value clothing products for leading international brands. With a revenue of Rs 11.39 billion in FY24, primarily from exports to the US, Europe, and Japan, the segment saw exports contributing 95% of its revenue. The facilities produce a range of men’s wear, including suits, blazers, jackets, trousers, denim, and shirts.

Raymond anticipates strong demand for higher-value garmenting categories like formal jackets, trousers, and shirts. The company expects growth driven by high demand from the US, UK, and European markets, efficient supply chain management, and expanded line capacities in Indian and Ethiopian facilities. The report mentioned that Raymond’s capacity includes the production of 7.5 million pieces of jackets, trousers, and shirts in India and 3.2 million in Ethiopia.