This case discusses about the turnaround of Raymond Ltd. (Raymond), a Mumbai based producer of worsted suiting fabric. In June 2016, an article in India-based financial newspaper, The Economic Times , reported that the company’s stock had doubled, outpacing the Sensex's rise of 34% during 2016. The company which was once the world’s largest manufacturer of fabric largely used in suits lost its luster further during the early 2000s when the market moved to readymade wear. Further, the unrelated diversification of business exerted pressure on the financials of the textile business. The entry of international brands, competition from other Indian players, increasing demand for readymade wear, etc. posed a threat to the business.

This case discusses about the various strategies that the company employed to get back the lost glory. Sanjay Behl (Behl), CEO of Raymond, who had no prior experience in the textile and fabric industry, was very instrumental in reviving the company and making a successful turnaround. The case highlights the managerial and leadership qualities of Behl. He followed the strategy of ‘focus on core businesses for turnaround. The case also discusses the 3-phase transformation strategy employed by Behl. With the first phase of transformation nearing its end and two more phases to be executed, it remained to be seen how successful Raymond would be to sustain the turnaround and make the company profitable. .

Human Resource and Organization Behavior Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	Examine the various internal and external factors that lead to a company’s decline.
	Identify the characteristics of strategic leadership.
	Appreciate the role of a leader in reviving the fortunes of a loss-making organization.
	Understand how focus on core business can be used as a strategy for the successful turnaround of the company.

Contents

INTRODUCTION

MAKING OF THE COMPLETE MAN

THE GOING GETS TOUGH

TIME FOR CHANGE

TAILORING THE TURNAROUND

IMMEDIATE RESULTS

KNITTING THE FUTURE

EXHIBITS

Keywords

Raymond Ltd,Formation and Growth,Factors leading to Decline,Strategic Leadership,Turnaround

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