With 3 listed entities, Raymond expects 15% sales growth, up to 20% pre-tax earnings: Gautam Singhnia

New Delhi: Raymond, a diversified group which will have three listed entities in its fold after demerger of lifestyle and real estate verticals, is looking for a stabilised growth of 15% from sales along with 15-20% of pre-tax earnings, Chairman and Managing Director Gautam Hari Singhania said.

Singhania expects Raymond Lifestyle to be listed this week, the entity which will house apparel-related businesses of the Raymond group, including its apparel brands, garmenting, suiting, shirting, and wedding fabric, along with its retail business -- The Raymond Shop and Ethnix.

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

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 board and chart their growth strategies.

"We would have three separate companies by the same time next year, with their own governance, their own management, own structures. That's the best way to move forward," Singhnia told PTI.

When asked about the growth, he said, "Each business will have its own strategies, whereas as a group, we would like to do at least 15% a year, organically and 15 to 20% EBITDA (earnings before interest, taxes, depreciation, and amortization)." 

Moreover, Raymond is now a debt-free organisation, and taking advantage it will also be in a position to pursue inorganic growth, he added.

Sharing the expansion plans of the Raymond Lifestyle business, Singhania said, "We plan to open about 800 to 900 stores over the next three years. We would like to double our EBITDA over the next three years. There are many new segments we want to get into." 

Similarly, real estate vertical, which started business with its Thane projects, can have "explosive growth.” 

The company is doing four projects under its GS series, of which construction of one has been started and for the rest three will start soon.

"Bombay is going to get developed. As Bombay is developed, there are more and more opportunities. I am very optimistic about. Real estate can have actually explosive growth," he said.

While in the engineering auto segment, it also has a "big opportunity" in engineering, auto and aerospace.

"So I think we have got three strong businesses, and that's where we are going forward," said Singhania.

In the Lifestyle business, Singhania is looking at the premiumisation trend and the growing wedding market, which is creating huge opportunities.

On being asked as to whether in the lifestyle business, Raymond has plans to enter into adjacent categories, Singhania said, "Right now our focus is sleepwear, which we have just entered into the market. We are doing innerwear. We have several other categories around the angle." 

This year, Raymond Lifestyle will open 300 exclusive brand outlets. "So moving forward, there is a huge growth opportunity," he said.

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

"But we are also looking at the GCC countries and Saudi Arabia, enhancing our distribution, as the large Indian population is in those markets. And we believe that we can enter those markets," he said, adding, "We have recruited a senior person now to go and focus on that market." Raymond already has 50 outlets in the Middle East and plans to increase that.

Raymond is the largest integrated textile company in the world 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 was Rs 9,286 crore.