How Raymond Started? From A French Founder to An Indian Company

Raymond Group, a name synonymous with high-quality textiles and stylish apparel, has captured the attention of investors and industry watchers alike. Once a modest woolen mill, Raymond has grown into a diversified conglomerate with significant plans for the future. As the company prepares for major changes, including IPO listings and strategic demergers, there’s a buzz in the stock market and among curious investors eager to understand how Raymond started and what’s next for this iconic brand.

A Storied Past: Raymond Origin

Founded in 1925 by Albert-Pierre Raymond in Thane, Maharashtra, who was a French industrialist. The Raymond Group started as a textile mill, making blankets and uniforms for the military. Initially, it had a different name, but after Kailashpat Singhania acquired it in 1940, it was renamed Raymond.

With the Singhania family leading the way, the mill’s focus shifted entirely to fabrics, and the business began to grow. In 1958, Raymond opened its first showroom in Mumbai. It was a big success. The Singhania family then brought in advanced machinery from abroad, which boosted production.

In 1980, Kailashpat Singhania passed the leadership to his nephew, Vijaypat Singhania. Vijaypat introduced new ideas and products, helping Raymond become a globally recognized brand. Under his leadership, Raymond gained fame not only in India but also around the world, making Vijaypat one of the richest men in the country.

Vijaypat Singhania keep on managing the company by 1990. Presently, his son Gautam Hari Singhania is the Chairman and Managing Director of Raymond Limited. Gautam restructured the group and sold Raymond’s non-core businesses (synthetics, steel and cement) to focus solely on Textile.

Over the decades, Raymond expanded its operations, introducing a range of fabrics and establishing itself as a leader in high-quality suiting. The 90 year old organisation is undergoing unprecedented changes.

Key Milestones:

• 1950s-60s: Expansion of manufacturing capabilities and the opening of the first exclusive showroom, King’s Corner, in Mumbai.
• 1970s: Diversification into various fabrics, including wool blends, cotton, linen, and denim.
• 2008: Raymond launched readymade garments under the Raymond Ready to Wear brand name, became the synonymous with fine tailoring and premium apparel.
• Retail Network: The Raymond Shop (TRS) network now with over 700 outlets across India and abroad in over 200 cities is expanding massive in size.

Current Status and Future Plans

Raymond story is now gearing up for significant changes. As of September 2024, company’s Market cap stands at 143.43 Billion INR. The company is preparing to list its newly separated entities—Raymond Lifestyle Limited and Raymond Realty Limited—by the end of 2025. This strategic demerger is designed to enhance shareholder value and streamline operations by focusing each entity on its core business.

Future Strategy Includes:

• IPO Listings: Raymond is on track to list its newly separated entities—Raymond Lifestyle Limited and Raymond Realty Limited—by the end of 2025.
• Expansion: Targeting the growing middle-class market in India with further growth in lifestyle and real estate sectors.
• Retail Growth: The company plans to open 900 new outlets over the next three years, expanding its reach and customer base. In addition, Raymond Lifestyle will launch new product categories, including sleepwear and innerwear.

Current Financials:

• Revenue Growth: Expected annual growth rate of 11.5%.
• Market Presence: Notable brands include Raymond, Park Avenue, ColorPlus, and Parx.
• Real Estate: Raymond Realty is focusing on high-quality residential and commercial projects.
• Growing EBITDA: Raymond Lifestyle is targeting significant growth, with plans to double its EBITDA to over ₹20 billion by 2028.
• Market Share Ambitions: The company also aims to capture around 7% of the men’s-wear wedding market by 2027, a move expected to further bolster its position in the industry.

Recent Developments

The National Company Law Tribunal (NCLT) has approved Raymond’s strategic demerger into three entities: Raymond Limited, Raymond Lifestyle Limited, and Raymond Realty Limited. This restructuring is designed to improve operational focus and unlock shareholder value.

Gautam Singhania, founder of Raymond, shared his excitement on Twitter: “To achieve big, you must dream big. Thursday’s listing of Raymond Lifestyle is a monumental step in our journey, beginning with a dream.”

Raymond Lifestyle is set to become a global leader in fabric manufacturing and retail, consolidating all fabric-related operations under one roof. Raymond story evolution from a small woolen mill to a diversified conglomerate underscores its adaptability and commitment to quality and growth.