New Delhi: Textile and apparels major Raymond will invest a total of Rs 1,400 crore in a phased manner in its new plant at Amravati in Maharashtra which will go on stream by this year-end.
The company has made an initial investment of Rs 200 crore for the first phase of the new unit that will produce cotton shirts, linen and denim, among others.
“Our greenfield project in Amravati is likely to be commissioned by year-end. With an initial capital infusion of 200 crore, the total investment will be about Rs 1,400 crore in a phased manner,” Raymond Chairman and Managing Director Gautam Hari Singhania told .
When fully operational, the Amravati plant will create an employment for about 8,000 workers. It is spread across 500 acres.
The plant will be used to produce items to meet demand of Raymond’s own brands as well as for other third parties.
It is expected to help meet demands of the company, which is embarking on a retail expansion across India with 300 new stores slated to be opened in the next two years. The majority of the new stores will be in small towns. “We are looking at 300 Raymond shops coming up in next two years and about 150-200 other format stores like Park Avenue, Colorplus and others,” Raymond CEO Lifestyle Business Sanjay Behl said.
At present, Raymond has 1,100 outlets in about 450 cities.
Behl said with this latest expansion, Raymond will have presence in 750-800 cities in the country.
“Most of the expansion of the new stores will be in tier 4, 5 and 6 cities,” Behl said, adding that “we have our unique presence in about 450 cities which makes us the largest and the deepest penetrated retailer.”
When asked about impact of GST on the company, Singhania said: “There will be a boost of affordability of branded garments priced below Rs 1,000 which have been thoughtfully levied at just 5 per cent of sale price.”
Under the new GST regime scheduled to be implemented from July 1, man-made apparel up to Rs 1,000 will attract a 5 per cent tax, lower than the existing 7 per cent. Those costing above Rs 1,000 will continue to attract 12 per cent.
[“source-economictimes.indiatimes”]