Mumbai-based textile and apparel major Raymond has drawn up plans to expand its retail presence in Tier IV and V cities. The company plans to open 289 stores on a franchisee basis in the next 18 months, which will involve an investment of Rs 100 crore – shared between the company and the potential franchisee partners.
With the addition of nearly 300 stores, the total number of the retail outlets of the company would go up to 800. The textiles major is targeting turnover to exceed Rs 200 crore from these new stores on an annualised basis.
The retail expansion is focused on towns like Bijapur, Mandya, Ahmednagar, Bellary, Ghoti and Bhandara, among others, where the company hopes to cash in on the first-mover advantage.
The company has ramped up its capacities to cater to its expansion plans. It has added 6-7 million metres of fabric capacity in its Vapi facility, increasing it to 38 million metres.
Raymond posted a net loss of Rs 231 crore on a turnover of Rs 2,586 crore in the fiscal ended March 31, 2009. It attributed the performance to forex losses and losses incurred in subsidiaries.