• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mr Nabankur Gupta (left), Group President, Raymond Ltd, handing over the key of a Mercedes Benz C Class car to the winner of Raymond `Once in a Lifetime' reward scheme, to Mr Nabarun De, Vice-Principal, Modern School, Baranagar, Kolkata, on Thursday.

KOLKATA, Jan. 24

HAVING acquired the entire equity stake in Regency Texteis Portuguesa Limitada - a Portugal-based garments company - for $3 million, Raymond Ltd has expressed its willingness to acquire more companies provided such acquisitions are consistent with the group's core competencies and the investment ensures a decent return over a period of time.

Stating this during an interface with newspersons here, Mr Nabankur Gupta, Group President & Wholetime Director of Raymond Ltd, said the group was open to the idea of acquiring more companies engaged in textiles and engineering files and tools businesses. A cash reserve of between Rs 550 crore and Rs 600 crore - after retiring high-cost debts from the proceeds received from sale of the company's steel and cement units - was available for this purpose. Raymond's interests in steel and cement have been sold for a total consideration of Rs 1,250 crore.

He said Regency Texteis was currently manufacturing about 500 suits every day for the European market, including uniforms for the staff of an airline and a major food chain. The acquisition of Regency was facilitated by the fact that the garments market in Spain, Portugal and the UK were growing at an appreciable rate and the cost of labour in Portugal was economical.

Raymond would continue to focus on its core businesses - fabrics, readymade garments and allied derivatives and engineering files and tools. The group was open to the idea of acquiring engineering companies in the coastal areas of the US and Europe, too. Engineering products contribute to between Rs 12 per cent and Rs 14 per cent of the group's Rs 1,400-crore turnover.

In India, Raymond was in the process of investing about Rs 130 crore in its fabrics business during the one-year period ending mid-2002. An investment of between Rs 35 crore and Rs 50 crore was proposed to be made in the readymade garments business in the current calendar year. While the rate of growth in the readymade garments segment was higher compared with growth in the fabric sales, in terms of value, proceeds from sales of readymade garments were about 10 per cent of the value of total fabrics sold.

According to Mr Gupta, the number of `Be' line outlets that were launched recently would be augmented to 50 - including outlets in Dubai, Abu Dhabi and Muscat - within the next two years from three at present. The Be line was focussed on formal office and evening wear for men and women in western, ethnic and fusion styles as well as accessories like bags and scarves. Well-known names from the world of designers have been roped in for the purpose with a view to corporatising the concept of designerwear in India. A revenue of Rs 30 crore was expected to be generated from the Be range within the next two years.

Send this article to Friends by E-Mail

Stories in this Section
Glenmark's new molecule to go through trials

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line