A

PROJECT REPORT

ON

“RAYMOND”

1. Industry Profile

Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the

country's gross domestic product (GDP) and 16.63 per cent to export earnings. Nearly 40 per

cent of the textiles produced in the country is exported and the textiles sector is the biggest

employment generator after agriculture. The sector is expected to generate 12 million new

jobs by 2010. The sector targets US$ 6 billion foreign direct investment (FDI) by 2015 to be

invested in green field units in textiles machinery, fabric and garment manufacturing, as well

as technical textiles.

India has made inroads into the markets of its key competitors which include Asian countries

such as Sri Lanka, Bangladesh, Vietnam and Cambodia. The Indian textile and apparel

industry is taking a new course by entering the Chinese market. Most of the top global

apparel retailers, such as JC Penny, Nautica, Docker and Target, have their sourcing network

in India. Indian textiles and apparel exports, which is worth US$ 22 billion, is expected to

register a four-fold increase to touch US$ 90 to 100 billion in the next 25 years.

2.Company Profile

The Raymond Group was incorporated in 1925 and within a span of a few years, transformed

from being an Indian textile major to a global conglomerate. The company always choose the

path untaken - from being the first in 1959 to introduce a polywool blend in India to creating

the world's finest suiting fabric the Super 240s made from the superfine 11.6 micron wool.

The Raymond group is vertically and horizontally integrated to provide customers total

textile solutions. Few companies globally have such a diverse product range of nearly 20,000

varieties of worsted suiting to cater to customers across age groups, occasions and styles. The

company manufactures the world the finest fabrics - from wool to wool-blended worsted

suiting to specialty ring denims as well as high value shirting.

After making a mark in textiles, Raymond forayed into garmenting through highly successful

ventures like Silver Spark Apparel Ltd. and Regency Texteis Portuguesa Lda (for fine

Tailored Suits, Trousers and Jackets), Ever Blue Apparel Ltd. (Jeanswear) and Celebrations

Apparel Ltd. (Shirts).The company have some of the most highly respected apparel brands in

its portfolio: Raymond, Raymond Finely Crafted Garments, Manzoni, Park Avenue,

ColorPlus, Parx, Zapp! And Notting Hill.

The Raymond Group also has an expansive retail presence established through the exclusive

chain of 'The Raymond Shop' and stand-alone brand stores for Raymond Finely Crafted

Garments, Manzoni, Park Avenue, ColorPlus, Parx, Zapp! and Notting Hill. With a US$600

million turnover the company became one of the largest players in fabrics, designer wear,

denim, cosmetics & toiletries, engineering files & tools, prophylactics and air charter services

in national and international markets.

3.ABOUT RAYMOND GROUP

Fully integrated across the value chain

4.Moving up the value chain – One stop Shop

4 .1 Fabric

4.2 Garmenting

4.1 Fabric

4.1 (a) Worsted Suiting

Raymond, with an installed capacity of 42 million meters of wool & wool-blended fabrics, is

the leading integrated producer of worsted suiting fabric in the world. It has four plants

located in the states of Maharashtra, Gujarat and Madhya Pradesh. The company exports its

suiting fabric to more than 50 countries including USA, Canada, Europe, Japan and the

Middle East.

Raymond, an innovator in the Indian textile industry, has developed a heritage of in-house

skills for research & development. This has resulted in path-breaking developments of new

products, which are today the corner stones of the worsted suiting industry in India. The

Group has mastered the craft of producing suiting using, wool from Super 80s to Super 240s

and spinning count as fine as 2/160 Nm. These are blended with superfine polyester and

other specialty fibers, like Cashmere, Angora, Alpaca, Silk, Linen etc.

FABRC

4.1 (b) Denim

Raymond has entered into a 50:50 JV with UCO NV of Belgium, a leading manufacturer of

specialty denim to form a global denim company that combines the denim businesses of

Raymond and UCO. The JV Company, Raymond UCO Denim, having it’s company

executive headquarters in Belgium, is manufacturing and marketing, specialty denim fabrics.

The JV has a combined capacity of 80 million meters, per annum, with manufacturing

facilities spread across three continents – the US, Europe and Asia, as well as a vast global

marketing network.

4.1 (c)Shirting

Raymond in partnership with Gruppo Zambaiti, one of the top three Italian high fashion

cotton textile majors in the world, has set up a Greenfield facility for the manufacture

of fine cotton shirting fabric. The joint venture company, Raymond Zambaiti Ltd, combines

Raymond’s expertise in textile business, low cost production, technology and

distribution with Italian strengths of creativity, style, production know-how, quality finishing

and lead times.

FABRIC

The product range includes a wide range of fabrics and finishing, including, cotton apparel

fabrics and high-end cotton suiting fabric, produced at the newly set up state-of-the-art

vertically integrated plant in India.This facility caters to the international markets at the

middle to the upper end brands and offers custom designed shirting products to the discerning

international customers, which includes leading brands and retailers.

4.2 GARMENTING

4.2(a)Tailored Clothing

Situated 40 kms from Bangalore is Silverspark, it facility that turns out world class, suits,

jackets and trousers. This modern plant spread over 200,000 sq ft built up area has the

capacity to produce 800,000 tailored menswear jackets and 2.0 million tailored menswear

trousers annually, a significant addition to our existing capacities at Thane near Mumbai

Set up at an investment of US$ 10 million this plant boasts of modern manufacturing

facilities on par with the best on the world. ‘Siro Set’ is another specialty that the plant has to

offer. The factory is equipped with computerized

presses in line and drying chambers to ensure consistency in the product. This technology

developed and perfected in Japan is designed to impart a permanent finish to jacket seams

and tailored crease on trousers made from pure wool fabrics. The combination of world-class

machines and work environment maximize productivity, quality and worker safety. With

additional investment of USD 10 million on the second plant the capacity will further

enhance

by 600,000 tailored menswear jackets and 600,000 tailored menswear trousers annually.

4.2(b) Jeanswear

A forward integration to Raymond’s specialty Denim plant is EverBlue, a top of the line

manufacturing facility for jeanswear, near Bangalore. This facility has a capacity to turn out 3

million garments per annum with integrated garment design, sewing and washing operations.

The plant boasts a high degree of automation right from computerized Gerber spreader and

cutter to laser patterning and finishing.

The stitching facility incorporates several automatic sewing workstations for consistency of

work execution, sate of the art over locking and zipper attachments. The finishing unit

consists of scraping spray booths, sand blasting and laser patterning to create special effects

on jeans wear. An in house CPC controlled laundry is the best such facility in India for

washing and dyeing obtained from Europe. This ensures a wide variety of finishes to meet

global tastes. Manufacturing is supported by an in house design studio and sample unit to

create new styles and samples. Dedicated sample washing machines ensure quick

turnaround of samples.

4.2(c) Dress Shirts

A spanking new unit – Celebrations has been set up in the technical collaboration with Flex,

one of the largest dress shirt manufacturers in Japan. With 100,000 sq ft of built up space, it

incorporates the latest factory design principles for employee comfort and productivity. The

current production capacity is 1.80 million shirts per year. Specialized machinery imported

from renowned manufacturers in from USA, Germany and Japan comprise of automated

spreading and cutting with an inbuilt system for matching checks and stripes.

The layout of the manufacturing line has

sufficient flexibility to adapt to smaller runs and

style changes. This flexibility permits

manufacture of both fused and non-fused collars

and cuffs as per customer requirements. Shirts

made in this plant have been well appreciated by

many as being on par with the best in the world.

JOJJJjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjjj

jjjjjjjjjjjjj

5.Join Venture

The Raymond Group today is poised to become a global player, integrated across various

categories like worsted suiting, denim, shirting etc. The Group has achieved this through

partnerships with companies that are the best in the world in their business. Raymond has

entered into a JV with Gruppo Zambaiti, Italy’s leading manufacturer of shirting fabric. Our

JV with UCO is a merger of equals that will create a global denim major with

transcontinental. manufacturing in US, Europe and Asia along with a combined capacity of

80 million metres. This JV with UCO will create synergies in sourcing, manufacturing and

marketing. Our JV have resulted in a unique combination of synergies in manufacturing,

marketing, technology, sourcing etc. and will reap tremendous mutual benefits in the years to

come.

6. Business to Business Operating System

6.1 Retail Networks

Raymond Group’s products are retailed through ‘The Raymond Shop’ (TRS) - the most

celebrated retail chain of its kind in the Indian sub-continent. The Raymond distribution

network comprises of more than 20,000 Multi Brand Outlets and over 400 exclusive retail

outlets in more than 170 cities which includes ‘The Raymond Shop’ which retails Raymond

Fabric and menswear brands (Park Avenue, Parx, Manzoni and ColorPlus) and exclusive

brand outlets for Park Avenue, Manzoni, Colorplus, Parx and Zapp!. The Raymond Shop also

has 31 outlets overseas in the Middle East, Sri Lanka and Bangladesh.

6.2Raw material Godown receives the following material from the supplier.

Supplier Material

RIL- Reliance Industries

Ltd. Pataganga (M.S)

Surat (Gujrat)

TOW-PSF

FRL- Futura Fibers Chennai TOW-PSF-TOP

GIL- Grasim Industries Ltd Nagda (M.P.) VSF-TOP

DAL- Dewavrin Australia P. Ltd Greasy Wool

CDDL- Compagnie Importin DeLaines Greasy Wool

BEAPL- BWK Elders Australia P. Ltd Greasy Wool

RSA- Rantax S.A Curuguay Greasy Wool

NV-NVJOS Vennestex (Belgium) Greasy Wool

SNSM- Socete Novvelle Textile Maclou

France and many others Suppliers

FLEX TOP

From India

AAT- Azad Agro Traders Kashmir

Greasy Wool

ESL- East End Silk Ltd.(Malda)W.B Silk TOP

7.1 BRANDED FABRIC AND RETAIL- CORE FOCUS

•Very large domestic relevant market opportunity

•Raymond plans to focus & grow in smaller towns and cities

Source : National Household survey 2008, MARKET FOR TEXTILES AND

CLOTHINGS, 2008, Textile Committee, Government of India

7.2BRANDED FABRIC AND RETAIL- CORE FOCUS

7.4 BRANDED FABRIC AND RETAIL- CORE FOCUS

Source: ColorPlus internal data; TechnoPak Advisors, June 2007; CRISIL research

8. Brands

The Raymond Group has in its portfolio some of the most respected brands in India -

Raymond as well as leading menswear brands – Park Avenue, Parx, Manzoni and ColorPlus.

Recently, Raymond, the flagship brand from India’s leading textile & apparel major

Raymond Ltd. took the craftsmanship of garment making and customer convenience to new

echelons by launching ‘Raymond Finely Crafted Garments’ (FCG). Raymond entered into

the ready to wear business with the introduction of Park Avenue in 1986, catering to the

formal men’s wear market. Parx was launched in 1998 to address the growing trend of smart

casuals. Both brands have captured major market share in their respective categories due to

an inherent advantage of vertical integration and a strong retail presence. In 2000, Manzoni, a

luxury lifestyle brand was launched offering a super-premium formal range of men’s shirts,

suits, trousers, jackets, ties and leather accessories. Raymond identified the vacuum for a high

end, casual wear brand and hence decided to acquire ColorPlus as a part of strategic

expansion plan for their ready-to-wear business. In September 2007, Raymond took its

experience and creativity to a whole new audience by entering into the women’s western

wear category with two premium brands, including, ColorPlus Woman, an exclusive range of

smart casual clothing for modern, discerning women and Park Avenue Woman, a complete

range of Business Wear for women.

Raymond Finely Crafted Garments (FCG) which was recently launched offers the

customers same Raymond brand promise of ‘Trust, Excellence, Quality and Leadership’ in

an exclusive formal range of ‘classic’ apparels and accessories.

Raymond Apparel has also ventured into the kidswear segment, with its exclusive brand

‘Zapp!’ Covering the spectrum of children's lifestyle products, it includes an entire range of

children's apparel and accessories. In addition to this, Raymond Apparel has also launched

‘Notting Hill’, the new apparel brand under the popular price segment. A complete ‘value-

formoney’ men’s wear brand, Notting Hill is the perfect combination of fashion, fit, styling

and affordability. All brands from the Raymond Group portfolio are well entrenched in the

market and are sold through multi brand outlets, as well as dedicated, exclusive stores, in

India and the Middle East.

9.Peer Group Comparison

10. Government Initiative

The Government has announced the release of a subsidy of US$ 533.87 million for the textile

industry under the Technology Upgradation Fund scheme (TUFs). The government extends

10 per cent capital subsidy and 5 per cent interest subsidy on installation of machineries and

for processing machinery under the TUFS. A 41-member Working Group has also been

announced to be set up with a National Fibre Policy, to ensure self-sufficiency in fibre

consumption and export requirements in India.

The Textiles Committee has also been reconstituted in order to ensure standard quality of

textiles both for internal marketing as well as exports. The committee will also establish

laboratories and test houses for testing of textiles. In addition, an online marketing and sales

portal has also been launched by the textile minister. The e-marketing platform, developed by

the Central Cottage Industries Corporation of India and the Handicraft and Handlooms

Export Corporation of India, will host more than 1,000 wide ranging handicrafts and

handlooms products. It will also provide online services, such as e-payment facility through

major debit/credit card as well as online tracking of the shipment. Moreover, the Ministry of

Textiles is considering setting up textile parks at Vidarbha and Marathwada, the largest

cotton growing regions in Maharashtra. Currently seven textile parks are already in various

stages of completion in Maharashtra.

11.Advantage of India

India offers cheaper production and marketing costs and enormous opportunities that have

tempted Taiwanese companies to work on joint ventures with Indian companies, especially

for the manufacture of manmade fabrics. Several European textile and textile machinery

manufacturing companies have shown interest in sourcing garments from India. Textile

companies were keen to set up base in India due to the cheap labour available here. India

offers various incentives like low-cost labour and intellectual right protection to foreign

investors. The country allows 100 per cent FDI in the textiles sector.

12. SWOT Analysis

STRANGTHS

The company has strong Research and Development dept. for product

and new technology.

The company has many Bank facilities like long credit time and other

facilities.

The company has qualified and experience Human Resource for selection and

recruitment.

WEEKNESSES

The company has obsolete technology.

The company has low production in off session.

The company has less man power according to the work.

OPPORTUNITIES

Large and growing market the available to the company is very large continuously

growing.

The company has maintained growth from last many years.

As the population increase the demand of product will increase

THEREATS

There are many competitors in the market.

The Indian market is the main market of the company but it is very unstable.

There are so many other factors like environment, political and regional.

13. Raw materials

Wool:- The Merino brand of wool is imported from Australia, and supplied as Topes by

the wool scouring & Grey combing department.

Polyester: - A man made synthetic fiber which is in the form of staple fiber or tow.

There are three verities- Normal, Sparkle &Low pill.

Viscose:- A regenerated cellulosic fiber, which is made from wood pulp. Generally it is

dope dyed by suppliers and is in fibrous form.

GODOWN FOR RAW MATERIAL

Here is three section of godown for keeping raw material.

1. Raw material godown

2. Top godown

3. Waste godown.

RAW MATERIAL NORMS

PSF – POLYESTER STAPLE FIBRE

VSF – Viscose Staple Fiber

TOW – Polyester Continuous Filament

GWL – Greasy Wool

SWL – Scoured Wool

PROCESS MATERIAL (Top is a bundle of sliver conversion of wool or Polyester TOW

is a converted Top)

TOP-Polyester

TOP-Wool TOP

OTHER MATERIAL:-

FLEX TOP (Linen TOP)

SILK TOP

VISCOSE TOP

LENRING MODEL TOP

BLENDED TOP

LENRING MODEL TOP

ACRYLIC FIBRE

14. SALES PROCEDURE

Every year there is sales booking takes place and the booking is done for two seasons.

1)Summer booking (in the month of December)

2)Winter booking (in the month of June)

In the booking the dealers book their requirement for next season for which the booking is

being taken place. And as per their booking, Sales & Marketing Dept. prepares sale notes

quality wise, shed wise for all the dealers those are given booking for the next season. There

is a three types of Sale Notes are prepared.

1)Main Sale Notes: The same is prepared buyer wise. In this, the qualities and shed numbers

are mentioned of the dealers which are to be produced by us to fulfill the requirement in the

required delivery period under instructions given to Production & Planning Department.

2)Additional Sale Notes: The same is also prepared buyer wise and the same is issued after

completion of booking for delivery period of next two months having the qualities and shed

numbers as per requirement of the buyer.

3)Mini Sale Notes: Mini Sale Notes can be issued in favor of buyer as per their requirement

received through phone or email or their personal visit.

15. Award

Textiles

Images Fashion Awards 2009 - Most Admired Textile Brand of the Year.

Reader's Digest - Platinum Trusted Brand, 2008.

Lyrca Images Fashion Awards 2008 - Most Admired Textile Brand of the Year.

Lyrca Images Fashion Awards 2008 - Most Admired Suiting Brand of the Year.

CNBC Consumer Award 2007 - The Best Branded Readymade Garment and Textile.

Brands

Park Avenue

Images Fashion Awards 2009 - Most Admired Menswear Brand of the Year.

Lyrca Images Fashion Awards 2008 - Most Innovative Lycra Brand of the Year.

J.K Files & Tools

EEPC (Engineering Export Promotion Council) India "Star Performer Award Year 2008-

2009" for the highest engineering exports in Hand Tools (Large Enterprise).

International Business

DHL & CNBC TV18 International Trade Awards 2006-07 - 'Outstanding Exporter Award' in

the engineering category.

HR

ACCOR Services - (International Leaders and India's Foremost in Employee Benefits,

Motivation and Loyalty Solutions) - Presented the "GLOBAL HR EXCELLENCE

AWARDS 2007-08" for the Outstanding Contribution to the Cause of Education at the Asia

Pacific HRM Congress.