Raymond Group, a nearly century-old diversified conglomerate, is preparing to list its real estate vertical by July or August 2025, according to Chairman & Managing Director Gautam Hari Singhania. The demerger process is currently underway, and once completed, the group will have three independent listed entities: Real Estate, Lifestyle, and Engineering. Each vertical will have its own board of governance and growth strategies.
Growth and Financial Targets
Singhania outlined Raymond's growth objectives, expecting a 15% annual increase in sales and 15-20% pre-tax earnings (EBITDA). With Raymond now a debt-free organization, Singhania emphasized that the company is well-positioned to explore both organic and inorganic growth opportunities across its verticals.
Raymond Lifestyle and Expansion Plans
Raymond Lifestyle, which houses the group's apparel-related businesses, is expected to be listed soon. This vertical will include brands like The Raymond Shop, Ethnix, and offerings in garmenting, suiting, shirting, and wedding fabrics. Singhania revealed plans to open 800 to 900 new stores over the next three years, aiming to double EBITDA during the same period. New segments, including sleepwear and innerwear, are also being explored.
Explosive Growth in Real Estate
Raymond's real estate vertical, which started with projects in Thane under the GS series, is expected to witness explosive growth. With Mumbai's ongoing development, Singhania sees significant opportunities for expansion in the city and surrounding areas.
Engineering and Auto Sectors
Raymond's engineering vertical, focused on auto and aerospace sectors, also presents substantial growth potential. Singhania noted that this segment will remain a key focus as part of Raymond's overall growth strategy.
Global Expansion and International Markets
The group is also expanding its international presence. Raymond currently has a unit in Ethiopia serving the U.S. market, and it plans to strengthen its distribution network in GCC countries and Saudi Arabia, targeting the large Indian diaspora. The company already operates 50 outlets in the Middle East and plans to increase this number in the near future.
Financial Performance
For the fiscal year ending March 2024, Raymond reported consolidated revenue of Rs 9,286 crore. As the largest integrated textile company in the world, Raymond exports suits to over 60 countries, including the U.S., Canada, Europe, Japan, and the Middle East.
With its real estate and lifestyle verticals poised for substantial growth, and the engineering segment showing promise, Raymond is positioned for a transformative period, driven by strategic expansion and market demand.