With 3 listed entities, Raymond expects 15% sales growth, up to 20% earnings before tax: Gautam Singhania

Raymond, a diversified conglomerate that will have three listed entities in its fold after the demerger of lifestyle and real estate verticals, is looking for pre-tax earnings of 15-20 per cent along with a steady growth of 15 per cent from sales, said Gautam Hari Singhania, chairman and managing director. Singhania expects Raymond Lifestyle to list this week, the entity comprising the Raymond group’s apparel businesses, including its apparel brands, garmenting, suiting, shirting and wedding fabric, its retail business – The Raymond Shop and Ethnics.

The nearly 100-year-old group has begun the demerging process for its fast-growing real estate business. Once the process is completed, it will have three listed verticals — real estate, lifestyle and engineering — with the main listed entity remaining.

Singhania expects its real estate vertical to be listed by July or August next year and each of the three listed verticals will be governed by their independent boards and their growth strategies will be drawn up.

“Next year at the same time we will have three separate companies with their own governance, their own management, their own structure. This is the best way forward,” Singhania told PTI.

When asked about growth, he said: “Each business will have its own strategy, while as a group, we want to grow at least 15 percent annually, organically, and 15 to 20 percent EBITDA (earnings before interest, tax, depreciation). and amortization).”

Additionally, Raymond is now a debt-free organization, and will be in a position to leverage that to drive inorganic growth, he added.

Sharing the expansion plans of the Raymond Lifestyle business, Singhania said: “We plan to open around 800 to 900 stores in the next three years. We want to double our EBITDA in the next three years. There are many new segments we want to do. Enter.”

Similarly, the real estate vertical, which started the business with its Thane projects, could see “explosive growth”. The company is undertaking four projects under its GS series, one of which has started construction and the remaining three projects will commence soon.

“Bombay is going to evolve. As Bombay evolves, there are more and more opportunities. I’m very optimistic about it. Real estate can really grow explosively,” he said.

While in the engineering auto segment, it also has “huge opportunity” in engineering, auto and aerospace.

“So I think we have three strong businesses, and that’s where we’re headed,” Singhania said.

In the lifestyle business, Singhania is looking at the trend of premiumization and the growing wedding market, which is creating huge opportunities.

Asked if Raymond plans to enter categories close to the lifestyle business, Singhania said, “Currently our focus is sleepwear, which we have just entered the market. We make innerwear. We have many other categories around us. Who.”

Raymond Lifestyle will open 300 exclusive brand outlets this year. “So going forward, there’s a huge opportunity for growth,” he said.

Raymond has a unit in Ethiopia, which mainly serves the US market, which is also doing well.

“But we are also looking at GCC countries and Saudi Arabia, increasing our distribution, because those markets have a large Indian population. And we believe we can enter those markets,” he added, adding, “We recruited a senior One should now go and focus on that market.”

Raymond already has 50 outlets in the Middle East and plans to expand.

Raymond is the world’s largest integrated textile company and exports its suits to more than 60+ countries including the USA, Canada, Europe, Japan and the Middle East.

For the financial year ended March 2024, Raymond’s consolidated revenue stood at Rs. 9,286 crores.