the quota regime coming to an end next year, Indian textile
companies like Raymond are readying themselves to grab
the export opportunity in major markets like Europe and
is scaling up its production capacity and has also been
roping in new clients over the past several months. Last
week the company inaugurated a new unit in Bangalore with
an annual manufacturing capacity of 1.3 million trousers
and 0.5 million suits.
the company has already found buyers for production from
the trousers facility and it is already sold out till
March 2005. Similarly, the company has got several Japanese
buyers who are aiming to de-risk sourcing from China.
The Japanese buyers have committed for one-third of Raymond''s
suits capacity with the potential to increase sourcing
five-fold. This retailer intends to increase sourcing
from India by five-fold as part of a strategy to reduce
its current 95 per cent dependence on Chinese supplies.
company''s three-million jeans facility is also scheduled
to commence production from January 2005 and holds potential
for a sell-out prior to commissioning. These two facilities
will add 11 to 16 per cent to Raymond''s turnover.
to an analyst from a leading firm, "Raymond is in
the forefront of seizing the textile export opportunity
post-quota dismantling from 2005." It has shed its
earlier image of being slow at capitalising on opportunities,
total cost of the facility is around Rs40 crore and Raymond
expects a contribution of Rs1.5 to two billion in turnover.