Raymond: Giving a New Spin to Khadi |
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Despite Raymond’s innovations in textiles and its strong retail footprint, it was still not financially sound. By the mid-2010s, Raymond had been facing a deep financial crisis for some years. The key reason for the company’s decline was the rise in brands, both Indian and international, which offered custom-tailored clothing and readymade clothing. Between 2009 and 2013, while the cost of capital and interest charges rose, the margins of the company fell by 5%.... |
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| Khadi was considered a traditional fabric in India that was woven on handlooms using yarn that was hand-spun from cotton, wool, or silk or any combination of two or all these yarns. In India, the yarn was spun using the ‘Charkha’, a small wooden spinning wheel... |
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| In 2016, the time was ripe for both Raymond and KVIC to collectively make a new move in the Khadi space. In December 2016, Raymond signed a Memorandum of Understanding (MoU) with KVIC. The public-private partnership (PPP) was a first of its kind initiative in India between two Indian brands (Raymond and Khadi), which were thought to be representative of the cultural heritage of India...
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| As part of the agreement, Raymond agreed to a guaranteed minimum procurement of Khadi and Khadi products for a period of five years. The company made primary purchases of muslin cotton, wool blends, and silk from KVIC...
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| In May 2017, Raymond launched the new ‘Khadi by Raymond’ product line at a fashion show. The new product line included a variety of fabric blends and ready to wear apparel. Industry observers opined that never before had Khadi been presented with so many customer options...
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| In India, Raymond had a strong brand presence. The common belief was that the first suit that an Indian man ever purchased would be a Raymond one. Keeping that in mind, the company positioned itself in the premium segment. Raymond’s main communication message was centered on the theme of ‘Raymond: The Complete Man’. Raymond mostly positioned itself as an occasion-led brand with customers expected to make purchases at special events in their lives such as, weddings and birthdays, among other occasions...
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| In FY 2018, Raymond purchased as much as 0.72 million meters of grey khadi fabric. Raymond, which had started out working with 20 Khadi clusters across India, had increased its association to more than 75 clusters in 16 Indian states, by December 2018. To further complete the company’s Khadi collection, Raymond added shoes and accessories such as tie pins and lapel pins....
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Exhibit I: Raymond’s Market Position in the Indian Textile Industry, as of 2019
Exhibit II A: Business Segments of Raymond
Exhibit II B: Segment-wise Sales Contribution of Raymond, as of FY 2019
Exhibit II C: Key Brands of Raymond
Exhibit III: Brief Insight into the Indian Textile Industry, as of 2018
Exhibit IV: Raymond’s Retail Presence, as of 2018
Exhibit V:
Revenue Information of Raymond (FY16-FY19)
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